• Cancellation of registered agreement of land

Please provide me your expert advise on below said matter. 

Sub: Cancellation of registered agreement of land and risk on seller by buyer

The matter is of Allahabad, Uttar Pradesh. An agriculture land was to be sold by seller. Deal was done mutually between seller & buyer. A registered agreement was established between seller and buyer of land in Feb-2015. Seller is Schedule caste and buyer is OBC. Mutually agreed rate of land is 5 times more than rate mentioned in agreement as per prevailing market. Agreement was draft by buyer & his lawyer and get signed by seller saying that this is normal practise and we have purchased land this way many times. Seller agreed and put his signature. Now it has been more than 6 months and buyer is not paying the money. Because in agreement it is mentioned that land will be registered within 3 months from date of permission issued by govt. authority/DM office. Permission is required because land belongs to SC. Seller is scheduled caste. Verbally buyer was agreed to take permission but intentionally, buyer has mentioned in agreement that permission will be sought by seller. But no body has applied for permission neither seller and nor buyer. 

Now buyer is not in mood to pay money as per verbal agreed terms. He is saying after getting permission he will pay but he is not trying anything to get permission. 

Seller is in need of money and it has been seven months since agreement date . After understanding the buyer's bad intention, we have consulted a lawyer and sent a notice to buyer for cancellation of agreement.
And now buyer is not agreed to cancel the registered agreement and seller is not able to sell his property to others to fulfil his need. 

The fear is what buyer can take possession on land without paying mutually agreed amount by legal approach based on agreement?
Buyer's motive is not in favour of seller, so please what preventive approach should seller take to cancel the agreement. 
In case, if permission on land will be granted, then what buyer can get possession on land by legal approach just paying the mentioned amount in agreement?

What is time duration of such agreement to be expired itself? 
Is it possible to sell the land to other buyers in presence of agreement?
If possible to sell, please advise me the procedures.

Please advise me to protect my property. I am seller. I want to cancel the agreement.
Asked 2 years ago in Property Law from Allahabad, Uttar Pradesh
Religion: Hindu
1) the terms of agreement signed be you with purchaser are sacrosanct 

2) buyer is bound to pay you only consideration mentioned in agreement 

3) if as per agreement onus is upon you to obtain permission from collector for sale of land you have to apply for permission 

4) only if collector refuses to grant permission can you cancel the agreement 

5) buyer can file suit for specific performance to obtain orders for you to apply for permission and deliver possession of the land on obtaining permission 

6) seller cannot sell the land yo any other person during subsistence of agreement 

7) after obtaining permission seller has to enter into regd sale deed within period of 3 months 

7) it is necessary to peruse agreement signed by you to advice further 
Ajay Sethi
Advocate, Mumbai
45617 Answers
2680 Consultations

5.0 on 5.0

1. Since the seller has already issued the notice for cancellation to the buyer the former can now file a lawsuit to seek a declaration from the court that the agreement stands cancelled and also to make the buyer liable for damages on account of breach of contract.

2. Once the notice for cancellation is issued to the buyer he cannot take the possession of the land. This, however, does not prevent a fresh agreement between them.

3. The agreement has to be executed within the time mentioned in the agreement itself.

Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Te time duration of performing the terms of agreement is in the agreement itself  as you have mentioned 6 months time.
if in case there is another clause in the agreement which speaks about the  specific period of complete payment .
since there is a deal of  Black money which is not in the agreement involved , default of payment will not be made out as his part of not performing the contract.
Is there any other agreement or MOU made regarding the  total mutually agreed amount.
The seller is supposed to get the permission to sell, so legally the buyer will b justified as you have failed to procure permission to sell.
 The buyer can take possession the property as per the agreement.
Thresiamma G. Mathew
Advocate, Mumbai
1515 Answers
134 Consultations

5.0 on 5.0

1. If the buyer fails to complete the purchase by making full payment within stipulated time as mentioned in the sale agreement, he runs the risk of cancellation of agreement.
2. So the seller can give one final notice calling upon the the buyer to complete the purchase within a time frame. If he fails to do so seller can cancel the agreement, refund the money and enter into agreement with new buyers.
3. You can seek injunction as well if you fear that you may loose possession over the property.
Devajyoti Barman
Advocate, Kolkata
12854 Answers
166 Consultations

5.0 on 5.0

Since the agreement for sale is time bound, i.e., three months only and as per the agreement the vendor has to obtain permission from authorities to sell the landed property belonging to a person o SC community to the buyer from other caste community, and as it was not possible to obtain such permission and also since the agreement period of three has expired, the agreement has become invalid hence the buyer is advised to take back the advance amount  (paid, if any) and cooperate for cancellation of the registered sale agreement by making his presence before the registrar's office on the time and date stipulated in the notice, failing which the vendor shall exercise rights to cancel the sale agreement unilaterally and proceed with the further legal procedures in this regard. 
This is how you can draft a legal notice cancelling the registered sale agreement and a copy of the said notice shall be endorsed to the Sub-registrar's office too.After that you can proceed with the sale of the property to any third person of your choice.
If he is  creating a problem by filing a suit for specific performance, you cn challenge the same quoting the time was mentioned as essence of contract but he failed to honor it hence the agreement become void or infructuous. 
T Kalaiselvan
Advocate, Vellore
35794 Answers
389 Consultations

5.0 on 5.0

1)any changes made have to be signed by both the seller and buyer 

2) if signature of seller is forged file complaint of cheating , criminal breach of trust , forgery against the buyer 

3) i had mentioned seller has to take permission based on your statement that buyer has mentioned that  seller has to take permission as per the agreement . 

4) it is better you contact a local lawyer . agreement signed by you has to be perused 

5) if buyer has made material alterations in the agreement without your consent file suit to set aside regd agreement on account of fraud 
Ajay Sethi
Advocate, Mumbai
45617 Answers
2680 Consultations

5.0 on 5.0

Though the buyer has struck off the time limit grace period, whether in your copy of the agreement  the contents remain in tact? If  so, the clause time is essence of contract will play a vital role and can cancel the agreement unilaterally or canignorethe agreement by issuing the notice to the buyer regarding the expiration  of time limit and on it being infructuous you may proceed with the disposal of the property as per your proposal/desire.
T Kalaiselvan
Advocate, Vellore
35794 Answers
389 Consultations

5.0 on 5.0

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