• Sale agreement valid or not

Hi
I (Seller)have done a sale agreement on 24 march 2018 
but my plot was under court case for transferring to legal heirs 
Buyer mentioned in agreement that once the plot is transferred to my name ,he wants to get sale deed within 10 days
Court case took long time and my mind is changed because purchaser has treated me very bad (some personal issues)in between these years
Agreement was made on rs 100 stamp paper
Agreement is with purchaser 
i don’t know whether he has got it registered from notary or not ( i think both parties have to be present there to sign on notary register) . purchaser mentioned that he has given 5 lac advance but haven’t given a single rupee either in cash , cheque or bank transfer.
How can i back off from selling the plot?
What are legal consequences if i don’t want to sell the plot..?
Asked 2 years ago in Property Law
Religion: Sikh

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10 Answers

What is the outcome of court case ? Kindly clarify 

 

2) it is necessary to peruse terms of agreement for sale to advice 

 

3) there must be a clause that in event you fail to execute sale deed what would be the consequences 

 

4) if no advance was given to you then you should not have signed agreement 

 

5) have you carried on any correspondence regarding non receipt of advance ?

 

6) if you fail to honour the deal buyer would file suit for specific performance 

Ajay Sethi
Advocate, Mumbai
89045 Answers
6352 Consultations

5.0 on 5.0

Send a legal notice to the buyer, after [deleted], stating that you have cancelled the Agreement of Sale, due to the following reasons:-

(1) Since the Agreement of Sale is barred by limitation, as the date of executing the deed was on [deleted] and so far the Absolute Sale Deed had not been executed ( [deleted] ).

(2). Moreover, the prospective buyer has not paid you a single rupee. The buyer has to prove on record that he had indeed paid you an advance amount of Rs. 5 Lakhs, which the buyer cannot prove, as there will be no record of either Cheque/DD/Bank Transfer, etc. If the buyer says that he has paid you the advance amount by cash, then there have to be the signature of 2 independent witnesses.

(3). As per rules, any transaction above Rs. 20000/- can only happen through Cheque/DD/Bank Transfer. So the Buyer cannot say that he paid you Rs. 5 Lakh by cash.

(4). Notary's entry does not give him the advantage, since the registration of the Agreement of Sale has not been made.

(5).  To be legally valid, the agreement of sale had to be made on 0.1% of the value of the property. Hence the buyer will be at disadvantage that the agreement was made only on Rs. 100/- Stamp Paper.

(6). It's your free Will to back off, based on the above points.

(7).  If you don't get response after serving legal notice to him, publish your intention of cancelling the agreement of sale in local newspapers in vernacular and English languages.

(8). When you back out, at best, the buyer will approach the Court and he can't prove that he paid you the advance amount of Rs. 5 Lakhs, as there's no bank record, as well as the 3 years' limitation period will also be expiring on [deleted]. 

(9). An Agreement of Sale will not have any legal validity, if there's no advance amount towards consideration paid to the Seller by the prospective Buyer.

Shashidhar S. Sastry
Advocate, Bangalore
4350 Answers
258 Consultations

5.0 on 5.0

Agreement  is valid notary or no notary, will not make any difference. The agreement is conditional, executable only if and when the plot is transferred to you. You have not stated which sort of case is pending on plot. The outcome of court case is uncertain, condition is not court case going in your favor, condition is if the plot transferred to you. After winning the case, there is possibility of appeal by the opposite party. Appeal period is 90 days from date of receiving copy of judgment, delivery of copy takes months. As pointed out plot has to be transferred to you, without transfer you cannot sell the plot. There is no immediate threat of execution of sale agreement. There are two other methods, in the pending suit if it is between family members, anyone can claim that the property is ancestral and obtain injunction against transfer or if it is not between family members a fresh suit can be filed claiming the property ancestral obtaining injunction against transfer. The possibility of execution of sale agreement  is remote and uncertain. But the purchaser can claim refund of 5L.

Ravi Shinde
Advocate, Hyderabad
3139 Answers
42 Consultations

5.0 on 5.0

You can back off but the purchaser may demand 5 lakhs. You need to prove in court if case filled that no money was paid there fore you are not honouring the agreement

Prashant Nayak
Advocate, Mumbai
28075 Answers
93 Consultations

4.4 on 5.0

1. If he has not paid a farthing then I wonder why you have allowed him to write 5 lakhs.

2. However if you have enough prove to discredit his payment of 5 lbs then send him a legal notice cancelling the sale agreement after which you are free to contact with a new buyer. 

Devajyoti Barman
Advocate, Kolkata
22515 Answers
408 Consultations

5.0 on 5.0

Firstly the unregistered sale agreement is not enforceable in law.

Secondly the sale agreement remains valid only for a period of three years from the date of its execution if time limit is not mentioned in it. 

Since it is an unregistered sale agreement, whether it is notarised or not, it is not enforceable in court of law hence you may issue a legal notice stating that the sale agreement is barred by limitation hence it remains cancelled as on date and also you do not want to continue with this since he was not ready and willing to perform his part of contract hence you are notifying him that the sale agreement is cancelled.

You may subsequently issue a newspaper publication notifying the cancellation of the sale agreement.

This step may protect your interests. 

T Kalaiselvan
Advocate, Vellore
79210 Answers
1614 Consultations

5.0 on 5.0

- Since, the said plot is under court cases , then if there is an stay order from the court , then legally you cannot sell the same.

- Further, an unregistered agreement is not having any value in the eye of law in case of property , i.e that purchaser cannot file a suit for claiming the property from you . 

- However, as there is already mentioned that you have taken 5 lac in advance with the execution of the agreement , and you have signed the same , then he can approach the court for recovery to the paid amount . 

- Further, if there is no witness in the agreement , then he cannot prove before the court that you have taken the said amount from him as an earnest money. 

- You can send him a legal notice for cancellation of the agreement /deal , after narrating that due to non-payment of any amount , you can cancelling the said agreement. 

Mohammed Shahzad
Advocate, Delhi
10304 Answers
123 Consultations

5.0 on 5.0

Dear sir,

 

A sale deed that is not registered has no value in the eyes of law. So he cannot enforce the agreement. Also, if three years have already passed since it was made, then no execution of that deed is mandatory as the limitation period is over. 

Also note that incase the agreement includes that 5 lac have been paid, then he might sue you for damages. In such a case, it is advised that you send him a legal notice revoking the agreement with the reasons stated and also mention that he hasn't paid any amount. Thank you.

 

Anik Miu
Advocate, Bangalore
5353 Answers
57 Consultations

4.9 on 5.0

sir

nothing will happen if you will back out of the agreement however if possible take anything in writing that he has not paid anything to you as consideration (bayana). if he has not paid anything then you are totally free to sell it to someone else. he may file a case against you for complying with the agreement however since he has not complied with then he will not be able to enforce it. even if you do not sell the plot then too he will not be able to force you but its better to take something in writing but you DO NOT give anything in writing to him now. 

Gopender
Advocate, New Delhi
384 Answers

4.9 on 5.0

If there was a court case pending why did you promise to transfer the plot of land. Once the court order will come into place and if the court feels the court may order the plot of land to be sealed and a receiver may be appoitne leaving the property to be in nobody ownership.

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

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