• Agreement to sell

I have entered into a agreement to see my plot on a rs 100 judicial paper .the date of execution of sale deed has expired and we have agreed to extent for another 25 days.
i have received the advance from the buyer.
what should be the legal route if the buyer defaults again on the agreed date.
also can we legally extend the date further.
Asked 2 years ago in Property Law from Delhi, Delhi
Religion: Hindu
1) you can extend agreement by mutual consent 

2) if you don't want to extend refund advance money received and cancel the agreement 
Ajay Sethi
Advocate, Mumbai
33646 Answers
1856 Consultations

5.0 on 5.0

For exchange of properties deed of exchange has to be executed duly stamped and registered 
Ajay Sethi
Advocate, Mumbai
33646 Answers
1856 Consultations

5.0 on 5.0

Hello,
1) Agreement to Sell is valid and binding even if it is not registered and is on a Rs.100/ non judicial stamp paper.

2) It is airtight tho have extended the date of execution of sale agreement by registration by 25 days.

3) If he defaults you can send him a legal notice of termination and sell the property to someone else if he does not comply.

If you want to further extend the date for registration it must be documented. It is advisable to draw up a new agreement to sell.
S J Mathew
Advocate, Mumbai
2079 Answers
87 Consultations

5.0 on 5.0

Hello,
1) If you have an option to do an exchange of property you may do so if that is beneficial in your view.

2) You will have to get the Agreement redrafted to include relevant clauses to incorporate the changes required . Get the document vetted by a lawyer.
S J Mathew
Advocate, Mumbai
2079 Answers
87 Consultations

5.0 on 5.0

1. You can issue him a lawyer's notice to come and complete the sale. If he does not comply with the demand raised in the notice then you can file a lawsuit against him to seek court's directions to him to pay the balance amount and take all the necessary steps to honour the agreement.

2. Alternatively, you can cancel the agreement and forfeit the advance and also seek compensation for dishonour of the agreement.
Ashish Davessar
Advocate, Jaipur
20750 Answers
549 Consultations

5.0 on 5.0

A. Any agreement executed by paying sufficient stamp duty for the legal purpose would be valid as like your agreement. Both parties can be extended the agreement by giving mutual consent.

B. In the event of fail to comply the terms of the agreement or register the property that you can issue a legal notice to the buyer by forfeiting the advance amount to cancel the agreement. Or you can approach the court for specific performance the contract.

C. You can exchange the property by way of execution of the exchange deed by paying sufficient stamp duty throgh registration process.
B.T. Ravi
Advocate, Bangalore
778 Answers
45 Consultations

5.0 on 5.0

Legally speaking the sale agreement on a mere non-judicial stamp paper without paying proper stamp duty for registration cannot be enforceable in law. 
However you may issue a notice to the buyer one week min advance expressing your willingness to perform your part of contract  to execute the registration of sale  deed in his favor upon he pays the balance of sale consideration amount within the time stipulated in the notice and getting the sale deed registered at his cost.  This will safeguard your interest in it. 
About exchange of property shall be your sole discretion, you need not take  any opinion on exchange. 
T Kalaiselvan
Advocate, Vellore
23671 Answers
233 Consultations

5.0 on 5.0

1. Is there any term mentioned in the agreement which states that you will deduct a certain amount from the advance amount paid by he prospective  buyer, should he refuses or fails to get the sale deed  registered for the property?

2. If yes then you can terminate the agreement for his failing to comply with the terms of the agreement and send him a agreement cancellation letter alongwith the payment towards refund of his avance amount paid after  making the necessary deduction,

3. However, since the property market is very dull, it may be prudent on your part to give him the last chance to arrange for registration of the sale deed.within the next specified date.
Krishna Kishore Ganguly
Advocate, Kolkata
14876 Answers
351 Consultations

5.0 on 5.0

1. The query id not clear,

2. Why should you exchange your property with the property the buyer intends to buy?

3. You either extend the time or cancel the agreement,

4. If you want to offer another property, make a fresh agreement after cancelling the instant agreement.
Krishna Kishore Ganguly
Advocate, Kolkata
14876 Answers
351 Consultations

5.0 on 5.0

In agreement there must be a clause for forfeiture of earnest money if buyer defaults. You may act accordingly. 
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations

4.8 on 5.0

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