Issue legal notice to seller to procure title deeds and execute registered sale deed in your favour
2) issue notice based on second agreement as advance paid is Rs 20 lakhs
Legal Notice against registered/unregistered agreement
Hello All, I had entered into two separate agreements (X & Y) with Seller for purchase of house in September, 2021 in Dharwad, Karnataka. 1) First agreement X was for Govt valuation with sale price of 40 Lakhs (10 Lakhs advance paid in cheque) and this agreement was registered in sub-registrar office. 2) Had another agreement Y for actual market value with sale price of 60 Lakhs (Advance 20 lakh paid, 10L via cheque included in agreement X + 10L cash). This agreement was on Rs 500 stamp paper & was not registered in sub-registrar office. As per agreement terms, Seller was supposed to procure Title deed from Hubli Dharwad development authority before completing the sale registration. There was no time limit set in agreement for seller to procure the title deed and complete the sale registration. It's been one year, the seller is not keen to obtain the title deed. He gives some lame excuses for delay and responds arrogantly insisting I pay 10 Lakhs more than agreed price during the sale registration since the property prices have increased in last one year. Need expert advice on next legal steps. 1) Is it right thing to issue legal notice to seller asking for either to return the advance amount or procure the title deed and complete sale registration within 3 months time frame. 2) Can the legal notice be issued based on agreement Y as the advance amount is more (20 L) compared to registered agreement X (10L) ? Appreciate your quick helpful responses. Regards, Mohan
Asked 3 years ago in Property Law
Religion: Hindu
13 Answers
1. It's unfortunate to understand that there was no time limit mentioned in the Agreement of Sale. Time is the essence of contract. Agreement of Sale would be valid for 3 years from the date of its execution.
2. Nevertheless, you can send a legal notice to the Seller based on the registered Agreement for Sale, mentioning the highest amount you have paid to the Seller.
3. You can also seek help from the Broker, Witnesses, who witnessed both sale agreements to intervene in the matter to your advantage.
Though, agreement Y is not registered it is a valid and enforceable agreement. But there is precondition to obtain title deed from HDDA. The seller is unlikely to fulfill this condition as he has changed his mind. Your best option is to issue a lawyer's notice seeking registration of sale deed after obtaining title deed within one month in the alternative seek refund of advance paid with interest of 18 % as penalty. After expiry of one month, you can file a suit for specific performance of agreement and in the alternative refund as stated. In the suit seek injunction against any transfer of subject of property which will be readily granted by Court. This put pressure on seller as he cannot further sell the property for at least 3 years during the pending of suit.
Hi, It is better you can execute legal Notice ask the seller to either return the advance amount or execute the Sale Deed.
2. You can't compare the two agreements and they are executed under different circumstances.
1. Since no time limit has been stipulated in the sale agreement, you may issue a legal notice to the seller demanding execution of sale deed after receipt of balance sale consideration amount as per registered sale agreement.
Don't commit for return of advance amount from your side.
2. In the legal notice you can mention about the legally valid transactions only
Thanks you all for your valuable opinion. May I request your feedback on below queries please. 1) Can suit be filed in high court or should it go-through heirarchy of starting with city civil court ? 2) Though exact time for case resolvement cannot be mentioned, but still how long could it take for case to finalized in the court ? This is considering the fact I have registered agreement in my name and there are no other obligation.
Asked 3 years ago
1) it should be filed in civil court
2) suit may take more than 15 years to be disposed of
Hi, you need to file the suit in the Civil Court itself. It is very difficult to say the time in the Court.
First file a suit before city civil court
Dear client, I am sorry to hear that but in case case you make issue legal notice against the other party but you cannot do it in agreement Y, you have to proceed with agreement X
1. The suit has to be filed before the jurisdictional sub ordinate court and not directly before the high court.
2. The time taken for disposal of a civil case by a court cannot be predicted owing to various factors involved in it and ordinarily it may take at least two to three years.
1. You can issue the legal notice duly noting the following.
a. Unregistered agreement is not legally enforceable but can be used as evidence.
b. So, you can take the stand that you had actually registered the agreement but thereafter the seller had increased the price and collected further advance of Rs.10 lakhs in cash.
2. You shall have to file a complaint case before the local District Consumer Dispute Redressal Forum against the seller alleging deficiency in service and unfair business practice claiming refund of the entire advance amount paid (if you do not want the house) with interest, damage and cost.
3. Alternatively you can file Money Suit before the District Court with similar prayer which will take much longer time than Consumer Court.
1.You can not directly file it before the High Court under the given circumstances.
2. It takes around 2 years in Consumer Court & minimum 4 years in District Court.
1. The suit be filed in City Civil Court.
2. Since Agreement of Sale is valid for 3 years, the exact time for resolvement of the suit can't be quantified.