• Sales agreement legal notice

Problem description: Mr X (venture owner) sold plot to Mr Y trough a proper sale deed in 2018 and I bot plot from Mr Y through a proper sale deed in 2021, Now after five years Mr X got a legal notice from Mr Z who made sales agreement in 2016 with Mr X. Now Mr Z also included my name in legal notice as a others in petition he mentioned that sale deed between Mr X to Mr Y is illegal because some cheque number is incorrect in sale deed. Could you please advice on this what to do.
Asked 1 month ago in Property Law
Religion: Hindu

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15 Answers

Reply to legal notice that you are boanfide purchaser of value 

 

that you have paid full sales consideration to Y 

 

that claim of Z appears to be barred by limitation as any suit to set aside sale deed ought to have been filed within period of 3 years 

Ajay Sethi
Advocate, Mumbai
81793 Answers
5120 Consultations

5.0 on 5.0

X executed agreement  of sell with X in 2016. Z issues notice to X who is seller of you seller on the ground the some cheque Nos. are incorrect in sale deed. If cheque Nos. are incorrect title is not affected by that. Z has right to seek recovery of any short fall in sale consideration from X. Title of subsequent purchasers Y and you are not affected by claim of Z against X. Claim of Z is not that he did not receive sale consideration from X he only says some cheque Nos. are incorrect. Your title is not at all affected by his claim against X. If any suit is filed by Z against X joint in the suit as party by way of caution. Apart from that no risk is involved for you.

Ravi Shinde
Advocate, Hyderabad
642 Answers
7 Consultations

5.0 on 5.0

The information provided by you is not sufficient to answer. However if there is an agreement which has not been mutually cancelled between them an action arises.

G.Rajaganapathy 

High Court of Madras 

Rajaganapathy Ganesan
Advocate, Chennai
1921 Answers
8 Consultations

4.9 on 5.0

Can you ask the receiving party and paying party to produce bank statement and later on do the recitification deed for the same.

Ganesh Kadam
Advocate, Pune
11974 Answers
125 Consultations

4.9 on 5.0

You have been the final purchaser of the property. You are an innocent buyer and tou must have made requisite enquiries before purchasing the property. Therefore don't worry and don't reply to the notice. Let him file a case in case he wants to. The limitation is against him.

Rahul Mishra
Advocate, Lucknow
12142 Answers
29 Consultations

5.0 on 5.0

What business does Z have if there is an error of a cheque number in the sale deed between X and Y?

Lol

It is for X and Y to take steps to rectify the said error

how does Z get any locus for such an error in the sale deed between X and Y

Seems like Z is a disgruntled buyer who could not fulfill his contractual obligation with X 

Also Z sending a legal notice now to X, Y and you after a lapse of 3 years and when the sale deeds have already been registered between the parties, is itself barred by law and would be a stale claim  

Yusuf Rampurawala
Advocate, Mumbai
6088 Answers
50 Consultations

5.0 on 5.0

- Since Mr X has entered into an agreement i.e. Sale deed with Mr Y , then legally Mr Y become the legal owner of the said plot 

- Hence, there is no relation of Mr Z  in the said transaction , and if there is some error or cheque clearance issue , then Mr Y can only claim the same , and can file a suit for cancelling the sale deed within a period of 3 years from the date of said execution of sale deed. 

- The said notice sent by Mr Z having no legal value , and you can send a reply for the same . 

Mohammed Shahzad
Advocate, Delhi
6544 Answers
69 Consultations

5.0 on 5.0

If you have received a legal notice then it becomes your duty to issue a reply notice through your lawyer denying the allegations leveled in the legal notice on the basis of the facts and the documents indicating your purchase of the proeprty by  registered deed.

If the notice was served by a court then you may have to appear before court either in person or through  lawyer nd record your objections to the case filed by the plaintiff and challenge the same along with your vendor and his vendor.

 

T Kalaiselvan
Advocate, Vellore
71857 Answers
1057 Consultations

5.0 on 5.0

Hello,

  1. One needs to peruse the notice under reference or the petition to ascertain for what purpose your name has been included.
  2. The fact  is that if the petitioner Mr.Z succeeds in proving that sale deed between Mr X to Mr Y is illegal, it will impact your purchase and title to the property.
  3. If the petition is already in the court, you need to engage a lawyer to represent you. Mr.X and Mr.Y have to deal with the issues and have you indemnified from any losses or you have to get it recovered from Mr.Y who sold the property to you.

S J Mathew
Advocate, Mumbai
3183 Answers
134 Consultations

5.0 on 5.0

Dear sir/ma'am,

The time period (limitation) to file a suit against (challenge)  the sale deed is three years since the day of execution of the deed. it's already late for Mr z to send a legal notice to you or to Mr. x however, sending the legal notice with the contention mentioned- the cheque number was incorrect is in no way feasible and apt.

since you have the proper sale deed, you are at par. however, legal matters are harassing and MR z can contest the limitation period of three years but giving reasons as to he wasn't aware, or the sale deed happened silently, etc., etc.

you require a proper legal consultation to back yourself regarding this.

  • For more assistance, you can book a consultation with me.
  • If you like my answer, please give a good rating and leave a review.

 

Anik Miu
Advocate, Bangalore
926 Answers
7 Consultations

5.0 on 5.0

You have bought this property by a registered sale deed on your name. 

The alleged sale agreement entered into by Z with X is by an unregistered sale agreement,  therefore it cannot be enforced through a court of law. 

Z has no case against. you. 

However it is not maintainable in court 

T Kalaiselvan
Advocate, Vellore
71857 Answers
1057 Consultations

5.0 on 5.0

There must be indemnity clause in your sales deed 

 

2) you can always sue Y to recover money paid by you with interest in case X succeeds on the suit 

 

3) there is delay on part of X in filing suit 

 

4) if sales agreement was of 2016 case if any ought to have been filed at the earliest and not after lapse of 4 years 

Ajay Sethi
Advocate, Mumbai
81793 Answers
5120 Consultations

5.0 on 5.0

Z executes agreement  of sale with X in 2016 on payment  of full sale consideration. The agreement  between Z and X was conditional on obtaining approval from HMDA. After that property is transferred from X to Y and Y to you. Z files suit in 2021 or 2020 against X including you. A suit for specific of agreement  executed in 2016 has to be filed within 3 years, after that is it time barred. If fraud is alleged limitation of three years will not apply. But simple allegation of fraud will not take the suit out of limitation. The allegation of fraud has to be explicitly stated as to how the transaction is fraudulent with documentary proof and evidence. In all cases when the suit is out of limitation some fraud is alleged to bring the suit within limitation. Alleging fraud is easy but establishing fraud is very difficult. X has a good chance of winning the suit.   

Ravi Shinde
Advocate, Hyderabad
642 Answers
7 Consultations

5.0 on 5.0

Dear Sir/Ma'am,

  • Since the sales agreement has not been registered, it is not enforceable by law in the court.
  • Also, establishing the case of fraud is difficult, therefore, it is possible that the court may pass a decree in the favour of Mr. X.

 

Anik Miu
Advocate, Bangalore
926 Answers
7 Consultations

5.0 on 5.0

- If there was an agreement /contract between Mr Z and X , and Mr Z paid even part of consideration amount , then both the parties are bond with the contents of that contract , and Mr X cannot sell /transfer that property to Mr Y without cancelling that agreement or taking consent of Mr Z. 

- Further, the limitation period of that agreement was 3 years from the execution of that contract of Mr Z with X. 

- Hence, the said legal notice by Mr Z is within the period of limitation , and Mr Z having right to approach the court against Mr X for the execution of Sale deed and cancelling the registration done in favour of Mr Y. 

- If Mr Z wins the battle , then you can file a fraud case case against Mr X , and to claim full refund with interest . 

Mohammed Shahzad
Advocate, Delhi
6544 Answers
69 Consultations

5.0 on 5.0

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