• If seller delays due date of sale agreement and buyer denies to buy property thereafter

Hello Sir,
 This is regarding sale agreement of my brother with a seller. There was sale agreement between my brother and a seller with due date 15 oct 2021. The seller had a residential property with tenants living there. He made sale of agreement with my brother stating that till due date tenants will vacate the property. But seller crossed the due date of 15 oct 2021 and asked for more time for tenants to vacate the property. The tenants vacated on 20th oct 2021. Now my brother lost his interest in buying this property because due date had passed away. 
My brother (buyer) asked the seller to return back his advance amount paid to him at time of sale agreement. The seller clearly denied returning back his advance money and started to blackmail him to buy his property in any case.
This would have been first home of my brother if he had bought it but due to such hinderances And behaviour of seller he has lost his charm in buying this particular property. 

Now please kindly answer me few of my questions:
1. After due date has passed away can the seller force the buyer to buy the property even though due date passed away due to his tenants delaying to vacate.
2. What should a buyer do if the seller denies to return his advance amount given at time of sale agreement.
3. Can the seller take legal action against buyer and force the buyer to buy his property even though the deal is delayed due to negligence of seller(due to his tenants late vacating property).
4. What legal rights does the buyer have in this case and how does he get his advance payment back from seller.
5. There was no clause mentioning tenants staying in the property at time so sale agreement. But my brother has call recording with tenant of seller on 15 oct 2021 stating that he still has not vacated the property by the end of 15 oct 2021. Can this be used as an evidence. 
6. What if the seller doesn’t return buyer advance money and put his property on rent or sell it to another buyer. 
7. Whose side will jurisdiction take in this matter when the buyer is suffering loss of his advance money being head by the seller. 
Can still the jurisdiction force the buyer to buy the property even though now the buyer has no interest to buy it, but this sale deed got cancelled due to delay by the fault of seller.

The clauses of sale of agreement are as follows:

1. It was on notary stamp paper with witnesses and buyer and seller signature.
2. The date of agreement was 10 sep 2021 and due date was till 15 oct 2021.
3. Advance was 4 lakhs and total consideration amount was 20 lakhs.
4. The cancellation clause stated that if seller doesn’t sell till due date then will have to pay double amount of advance amount to buyer. 
The another clause was that if buyer doesn’t buy till due date then his advance amount of buyer will not be returned back to the buyer from seller.
5. There was no clause mentioning tenants staying in the property at time so sale agreement.
Asked 4 years ago in Property Law
Religion: Sikh

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13 Answers

1) seller cannot force buyer to buy property as he failed to execute sale deed by due  date although buyer was ready and willing to perform obligations under contract 

 

2) issue legal notice to seller to refund your advance money 

 

3) if no refund is done sue seller to recover your money with interest 

 

4) call recordings are admissible in evidence 

 

5) buyer cannot be forced to buy the property 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

1.  The seller can't force the buyer to buy the property after the due date if the delay is due to the seller's fault.

2.  The buyer should send a Legal Notice to the seller, to return the advance amount to him, as the delay is due to seller's fault.

3.  The seller may move the Court seeking for Specific Performance from the buyer. However it can be countered by the buyer proving the negligence of the seller himself by not arranging for vacant possession of the property within the due date as per agreement of sale.

4.  It depends on the clauses mentioned in the agreement of sale, like breach of contract, penalty clause, specific performance, etc. The buyer should send a legal notice to the seller to return his advance amount, as the seller has not honoured his commitment to arrange for vacant possession of the property.

5.  Call records can be used as evidence.

6.  In that case, bring Injunction Order from the jurisdictional Court, to maintain status quo on the property.

7.  If it's proved beyond doubt that the delay is from seller's side only due to which the agreement of sale got cancelled, then the Court is likely to consider this point and may not force the buyer to buy the property.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

In this case buyer has right to cancel the agreement and seller should return the advance to him as it's not his fault. Buyer can initiate legal action against the seller for such delay id advance amount is not returned. Seller can seek compensation of the same from the tenant if he has illegally occupied the same

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1. If the agreement for sale was by an unregistered sale agreement, then due to the problem of the vendor, the buyer can cancel the sale agreement immediately when the seller was not able to execute the registered sale deed in favor of the buyer.

Your brother should have communicated his decision to cancel the sale agreement in writing and demanded the return of the booking amount.

2. He can do so even now but let him secure documentary evidence for all his actions that he intend to undertake now in this regard in order to enable him to fight the case in court of law if necessity arises.

3. The buyer should send a legal demand notice before the seller is taking any legal action on this 

4. He can file a suit for recovery of his advance money.

5. The fact that the seller was not ready and willing to execute the registered sale deed as on the last date of the agreement even though the buyer was ready and willing to get the sale deed registered on his name would be sufficient  and the buyer need not show any other reason.

6. The buyer can file a suit for recovery of his advance money.

7. You have to file a proper case in court of law and present your arguments very strongly.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

If buyer fails to prove that seller delayed the deal then seller can forfeit advance money as per clauses in agreement 

 

2) he can seek stay order restraining sale of property by seller 

 

3) issue legal notice to seller seek double the amount as per terms of agreement 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

He can't force as conditions are already breached. 

No seller needs to pay the compensation if any if loss has happened to buyer. 

The compensation part needs to be decided by the court depending on actual loss incurred by him

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

1. If the seller was not ready to execute the sale deed within the stipulated time then he has no case to contest.

The agreement conditions will prevail. 

2. The court will decide about it after hearing both the sides,  hence you may have to follow it up through if you opt for legal action 

3. You can go by the conditions of the sale agreement. 

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

1. After due date has passed away can the seller force the buyer to buy the property even though due date passed away due to his tenants delaying to vacate.

yes the seller can require your brother to purchase. time was never an essence of the contract as the completion of the sale was predicated on the tenants vacating the property. there is a delay of only 5 days and so no heavens would fall loose if the sale could not be completed on 15.10.21. Had there been an unconscionsenable delay then your brother would have been justified to refuse to complete the sale and seek refund of his advance
2. What should a buyer do if the seller denies to return his advance amount given at time of sale agreement.
file a suit and prove in the court that the purchaser is entitled to refund

3. Can the seller take legal action against buyer and force the buyer to buy his property even though the deal is delayed due to negligence of seller(due to his tenants late vacating property).

yes the seller can, the delay in vacating of the property by his tenants notwithstanding
4. What legal rights does the buyer have in this case and how does he get his advance payment back from seller.

buyer has to show and prove what legal injury did he suffer due to the alleged delay. buyer has to prove this in a suit to be filed by him against seller for refund of money
5. There was no clause mentioning tenants staying in the property at time so sale agreement. But my brother has call recording with tenant of seller on 15 oct 2021 stating that he still has not vacated the property by the end of 15 oct 2021. Can this be used as an evidence.

do you mean to say that your brother was totally unaware about there being tenants on the property? did he not take even an inspection considering that this was his first house purchase? this does not sound convincing at all!
6. What if the seller doesn’t return buyer advance money and put his property on rent or sell it to another buyer.
seller has the right to forfeit the advance because buyer is backing out of the deal. if you want the refund you will have to file a suit.

7. Whose side will jurisdiction take in this matter when the buyer is suffering loss of his advance money being head by the seller.

Can still the jurisdiction force the buyer to buy the property even though now the buyer has no interest to buy it, but this sale deed got cancelled due to delay by the fault of seller.
that the court will decide. cannot be predicted.

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1. What if in the court of law the seller says that he is ready to sell the property, than can the buyer be forced to buy the property in case buyer fails to prove that seller delayed the property deal or if seller says that it was a minor delay of 5 days to vacate the property. 

I mean if neither parties can prove each other fault than on what grounds does court of law decide.

it all depends on the court determining whether time was of the essence of the contract or not

2. Can the seller enjoy fruit of renting his property till litigation against him is going on for returning back advance money to buyer in court of law.

Or can buyer get stay order from court so that seller cannot put his property on rent or sell it to someone else till buyer gets back his advance money with interest.

buyer backs out of the deal. then he has problem with the seller selling his property to someone else and also against renting of the property. no court will grant such a stay to the buyer. that would amount to miscarriage of justice.

3. The sale agreement clause stated that buyer gets double the amount of advance money in case seller doesn’t sell the property within stipulated time. So now after delay of due date should buyer send legal notice to ask for the advance money he paid to seller or double the amount as stated in the clause of sale agreement
yes.

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

Seller has to deliver vacant possession of property 

 

2) buyer is correct that he will not buy property having tenants 

 

3) it was advisable to include such clause in sale deed 

 

4) buyer should refuse to buy if seller unable to deliver vacant possession 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

The same can be done as per the agreed terms between the parties in writing 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Dear client 

Buyer's obligations: If the due date specified in the sale agreement has passed, and the seller has not fulfilled their obligation to vacate the property, the buyer may have grounds to cancel the agreement. The buyer cannot be forced to buy the property if the seller has not met the terms of the agreement.

Seeking the return of advance amount: If the seller refuses to return the advance amount despite the buyer's request, the buyer may consider sending a legal notice through an attorney demanding the return of the advance payment. If the seller still refuses to return the money, the buyer may have to file a lawsuit to recover the advance amount.

Legal action by the seller: The seller may potentially take legal action against the buyer if they believe the buyer breached the terms of the agreement. However, if the buyer can prove that the delay in completing the deal was due to the seller's inability to vacate the property, the buyer may have a valid defense against any legal action taken by the seller.

Buyer's legal rights: The buyer may have legal rights to seek a refund of the advance payment if the seller has failed to fulfill their obligations as per the sale agreement. The specific legal remedies and options available to the buyer may depend on the laws of the jurisdiction where the property is located. It's crucial to consult with a local attorney who can advise you on the best course of action.

Call recording as evidence: The call recording you mentioned may be considered as evidence in court to support the buyer's claim that the seller did not vacate the property within the specified time. However, the admissibility and weight given to this evidence will depend on the rules of evidence in your jurisdiction and the court's discretion.

Seller's actions: If the seller proceeds to rent or sell the property to another buyer while the dispute over the advance payment is ongoing, it may complicate the legal proceedings. In such cases, the buyer's attorney may seek an injunction or a stay order from the court to prevent the seller from disposing of the property until the matter is resolved.

Jurisdiction's decision: The decision of the court will depend on the specific facts and evidence presented by both parties. If the buyer can establish that the seller breached the terms of the agreement and failed to vacate the property within the specified time, the court may be more likely to rule in favor of the buyer, potentially ordering the return of the advance payment.

These are general guidelines, and the outcome may vary based on the specific laws and circumstances of your case. It's essential to consult with a qualified attorney who can evaluate your situation and provide you with accurate legal advice.

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

The condition is that the seller shall handover vacant possession to the buyer after receipt of full sale consideration amount and registration of sale deed in favor of the buyer.

The buyer can communicate his decision to cancel the sale agreement for the said reason and demand return of the advance amount paid with interest as the seller did not execute the sale deed within the time stipulated in the sale agreement.

If he is not complying with the demands made, you can file a suit for recovery of money 

Actually e buyer should have sent a legal notice one week before the expiration of the date within which the sale deed was t be executed, about the readiness and willingness on the part of the buyer and to request the seller to fix a date for executing the sale deed after receiving the balance of sale consideration amount, if the buyer had not taken this step then the buyer may not be eligible to challenge this issue legally, but that will not prevent the buyer to demand return of  his advance amount,

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

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