• Selling a property

Hi,

My name is Vikram... I need to ask for a advice in regards to setting a property to  developer. My dad recently was in talks with one the builder o sell his house. My dad accepted the offer at Rs 2.3 crores and they agree that they can complete the whole deal on 8th of May 2015 and they gave my dad initial deposit of Rs.25 Lakh. And now buyer is forcing my dad to reduce the agreed price as the market rate has gone down according to him. When my dad approach him an ask him to cancel the contract he turn back and said that if my dad turn back from the contact my dad has t pay him 50 Lakh rupees. He is neither letting my dad to re let the property nor finalised the deal. Its been nearly 5 months now since the deal should have completed.  On other hand he is very abusive to y dad and mentally torching him by abusing him on phone. My dad has lost a rental income for the last 5 month as well.

I want to know if there is any law in which we have to pay buyer 50 Lakh rupees if we want to cancel the deal. And is there any time limit in which the buyer has to complete the deal he originally agreed.

Any information regarding this be very useful

Hope to hear from you soon.

Many thanks,

Vikram
Asked 1 year ago in Property Law from United Kingdom
Religion: Sikh
You have not mentioned about the sale agreement entered between your father and the builder. 
The builder's claim is illegal and unjustified.  If there is an  agreement, then there will be a time stipulated in it within which the contract should be completed, in the absence of it, your dad may go ahead with letting the property on rent and  should warn him of  the consequences if he is trying to interfere. Your dad may offer to return his advance amount without interest, if he is  not agreeing, he may issue him a legal notice terminating the contract and advise him to accept the advance amount which you should send it by a  crossed cheque with a mention about its details in the legal notice. 
If the builder's tortures are beyond tolerance, a police criminal complaint may be lodged against him for his illegal acts and threats. 
There is no such thing  that anyone can  take law in their hands and  pose dangers to others by flouting the rules or threatening others with the influence and help of anti social elements,. All are equal before law. 
T Kalaiselvan
Advocate, Vellore
13932 Answers
127 Consultations
5.0 on 5.0
There is absolutely no law as such and your father is not liable to pay any money unless off course such were the terms of agreement between your father and the developer. 

That said you have a good case. If the possession is in your control then feel free to alienate the property to someone else. But do ensure that you have returned the money to the developer before you enter into a contract with another. Because if the developer realises you are about to cancel the contract then he might just approach the court and take an injunctive relief restraining your father from creating third party rights. 

So you must do the things very swiftly. Preferably send the cheque back to the developer and keep a person ready to buy. The other agreement should be executed as soon as the developer receives the cheque so that he does not have the time to get an injunction.

It is advised that you take into consideration the language of the agreement between your father and the developer at every turn. If time was the essence of the contract then that should further help you. 

It is also advised that you must do all your correspondence under the supervision of an able civil lawyer as otherwise you might just end up wasting precious time or fail to take cognizance of important contractual language.
Saptarshi Banerjee
Advocate, Kolkata
183 Answers
4 Consultations
4.9 on 5.0
1) it is necessary to peruse agreement signed by your father with developer .

2) your father cannot be forced to reduce sale price of Rs 2.3 crores agree upon 

3) your father can cancel the agreement if time was essence of contract and builder has failed to make balance payment 

4) refund Rs 25 lakhs and cancel the agreement 

5) your father is not bound to pay the builder Rs 50 lakhs unless there is such a provision in the contract 

6) your father should record the abusive phone calls and lodge police complaint of criminal intimidation under section 506 of IPC against the builder

Ajay Sethi
Advocate, Mumbai
23116 Answers
1214 Consultations
5.0 on 5.0
1) it is necessary to peruse agreement signed by your father with builder 

2) if time is not essence of contract builder can make balance  payment within period of 3 years

3) your father will have to pay Rs 50 lakhs if he cancels the contract with the builder 
Ajay Sethi
Advocate, Mumbai
23116 Answers
1214 Consultations
5.0 on 5.0
Actually any or all the contract will be within the fixed time limit for performance hence any contract without the said limitation  can be considered as void. 
If there was no condition about the termination of contract, the builder cannot apply a clause unilaterally suiting his convenience, it stands vitiated legally and any claim in that regard may not be considered by a court of law. 
As suggested your father may send a legal notice on the lines of the suggestions made to safeguard his interests. 
T Kalaiselvan
Advocate, Vellore
13932 Answers
127 Consultations
5.0 on 5.0
Okay then your case will be to argue that the developer stands repudiated by his conduct of not willing to pay the entire money and also by not completing the obligations under the contract within the contractual time. And you have to argue that since h has by his conduct broken the contract so he must be liable to pay you the damages of the 50 lakhs. In all probability he too will file a counter suit for specific performance.

Such grievances have to be brought on record through proper detailed correspondence. Also you have to consult the letter of the contract very strictly in this case. 

You are advised to meet a local lawyer with the papers. Just ensure that he is well aware of suit proceedings especially suits for specific performance and Title Suits.
Saptarshi Banerjee
Advocate, Kolkata
183 Answers
4 Consultations
4.9 on 5.0
Hello,
1) All depends on the terms and conditions stipulated in the initial agreement to sell entered into at the time Rs.25,00,000/-was advanced.

2) If there's a time clause which is ought to be there it will be binding on the buyer too. It is pertinent to see the contents of the Agreement.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0
Hello,
1) Breaking the Agreement is applicable to the buyer too. His demands fur reducing the agreed price isa violation if the contact from his part.

2) If there's no time clause to complete the contract your father can send a legal notice and demand the payment to be completed and the contract concluded or forfeit the advance amount.

3) In the meantime your father can file a police complaint against the buyer against the criminal intimidation on part of the buyer.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0
Without seeing the agreement it's very difficult to advise.
 The clause dealing with cancellation or refund must be mentioned in the agreement which alone can throw light on this.
Devajyoti Barman
Advocate, Kolkata
5154 Answers
54 Consultations
4.9 on 5.0
1. The agreement should be got drafted from a lawyer. The readymade drafts which are provided by the brokers should never be  accepted as they are one sided and do not protect the rights of the sellers. The brokers invariably take the side of the buyer and not seller. Be that as it may, if an agreement was entered into then it ranks sacrosanct. Both the prospective buyer and seller are bound to honour the terms reduced to writing in the agreement.

2. The sale consideration mentioned in the agreement cannot be unilaterally changed now.

3. If the prospective buyer fails to pay the consideration amount which has been incorporated in the agreement then he is at fault, and thus has to pay double the amount.

4. Your father can forfeit the earnest money which has been paid to him. He can also file a lawsuit against the prospective buyer to seek court's directions to him to honour the agreement. If no time has been mentioned in the agreement with respect to the completion of the sale then it is a blunder. 

5. Get the agreement vetted from a lawyer. 
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
1. Was there any agreement executed by and between your father and the developer?

2. If yes, what is the term of payment and is here any forfeiture clause for forfeiting the advance if further payments are not made on time?

3. However, if here is an agreement, your father shall have to act strictly as per the agreement, 

4. If there s no such written agreement, then the developer can not demand any extra amount from your father,

5. Let your father return the said Rs.25 Lakhs by ECs payment and if that is not possible let him make a DD for the aid amount and send it to him through speed post duly preserving the track report  fr delivery of the said DD,

6. After returning the said amount, let your father send him a letter duly cancelling the agreement on specified ground,

7. The said cancellation should be drafted by a lawyer since it may be a document which will be placed by the developer before the court,

8. If the developer uses abusive language and harasses your father, he should lodge a police complaint immediately under copy to local S.P.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0

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