Issue with sale of my apartment
Hi - Was hoping for some legal advice
I was moving to Delhi from Chennai; put my apartment for sale, under market value, coz I needed to move faster. Had an agreement with someone in November 2014 - Payment period was 3 months - Agreement was done with the buyer; not registered; I have taken an advance of 10Lakhs; He needed to close this deal by end of Feb 2015
Its 10 months now no further movement from the buyer side despite multiple calls from me. He just says he needs more time and nothing more..
1. I am paying loan on this property; I paid over 2 lakhs in interest alone since Feb 2015
2. I couldn't even give the property for rent;coz of this confusion
3. I told the buyer I am willing to pay him back, he just says give me another 2 weeks
4. I lost 2 good deals because of this buyer not accepting any of my proposals
1. What are my options legally ?
2. I need to clear this mess.
3. If I have to pay him back, can I pay him less than 10 Lakhs ? Coz I lost quite a bit.
Any inputs will be of great help
Asked 1 year ago in Property Law from Chennai, Tamil Nadu
your sale agreement with present purchaser is not registered, none the less, you both have adhered to the terms of the agreement.
first and foremost if buyer is not sticking to the terms of the agreement and has not come forward to complete the transaction, then you can issue a legal notice and terminate the agreement, on termination as per the agreement you are entitled to deduct 25% of the advance amounts towards loss and interest caused to you on account of the existing agreement, balance is liable to be paid back to the buyer.
or alternatively you can terminate the agreement, enter into another agreement for the sale of the property, if buyer fails to respond to the legal notice issued by you.then in such an event also you are eligible to deduct 25% plus your losses incurred on account of this transaction and pay back the buyer the residue. After cancellation of the existing agreement kindly issue a PUBLIC NOTICE to avoid default from your side.
1. You can cancel the agreement and return the advance money.
2. After canceling the agreement make fresh deal with new buyers.
3. If there's penal clause you can forfeit a certain amount of money as default.
1) it is necessary to peruse terms of agreement signed by yiu with the buyer
2) was time the essence of contract ?
3) if buyer has failed to make payment within stipulated time cancel the agreement and refund rs 10 lakhs to the buyer
4) contact a local lawyer
Thanks for a few quick responses!
3 months from date of agreement was clearly mentioned in the contract. But nothing is mentioned on what if 3 months is passed. It does not say about cancellation or 25% forfeit or any other details.. Does it mean after 3 months it already stands cancelled ?
Honestly I am happy if the guy accepts for cancellation and move on, but before I consult a local lawyer, wanted to know, is it not fair for me to expect that he absorbs some of my losses.
So if its not mentioned in the contract terms, can I still force him to pay for my losses. But I don't want any further legal troubles etc. either and don't want any complications
Asked 1 year ago
In that event you can not forfeit the money but surely send a cancellation letter and the cheque.
Then make a new agreement wit another buyer.
1)forget your losses
2) terminate your contract as purchaser has failed to make payment within stipulated period and refund advance money received
You cannot say that you suffered pecuniary losses due to delay in materialisation of the sale agreement because you already hold his cash of Rs.10 Lakhs and what about the interest he pays for that money lying idle with you.
If You think that he is not cooperating anymore, you can issue a legal notice stating that the said contract has already stands terminated due to the time which is essence of the contract, however since you are still trying to solve the issues amicably, you are giving one last chance to him to get the sale deed executed and registered within the time stipulated failing which you would be forced to return his advance amount of money lying with you after deduction of certain portion towards the administrative expenses and incidentals.
After that you can either put someone as tenant in it or can decide about selling it and getting it disposed as per your choice.