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  • Property Sale Agreement with No Cancellation and forfeit clause

Please help me with the below

This deed of Agreement to sell is executed on this[DATE] between [MY DETAIL]. (hereinafter called the First Party/Seller).
AND
[BUYER DETAIL] (hereinafter called the Second Party/Purchaser).
The expressions of both the parties shall mean and include their legal heirs, successors, executors, - administrators, representatives and assigns etc. respectively.
WHEREAS the First Party is the actual allotee /owner of [PROPERTY ADDRESS] AND WHEREAS the First Party has agreed to sell the aforesaid Flat to_the Second Party and the Second Party has agreed to purchase the same, in a total consideration amount of Rs.[SALE AMOUNT AGREED], on the following terms and conditions: - (every things Parking allotment, IL Gas, Inclusion)

Payment Detail
CHQ/NEFT/CASH/OTHER
S.NO
1. [10% OF SALE VALUE WITH DETAIL]
2.
3.

NOW THIS AGREEMENT WITNESSETH AS UNDER:
1. That the first party has received a sum of [10% SALE VALUE], as earnest money out of the total consideration amount of Rs.[AGREED SALE VALUE] from the second party, and sum of Rs.[BALANCE], will be paid by the Second Party to the First Party at the time of builder Transfer in favour of the Second Party or his/her authorized person/nominee.
2. That the first party assures to the second party that the above said property under sale is free from all type of encumbrances, sale, mortgage, gift, lien, burden, decree, liabilities, attachments, acquisition, stay orders, injunction orders, legal flaws, surety, security, disputes, notification, litigation or transfer etc. and there is no legal defect in the title of the First Party and if it proved otherwise or if the First Party is deprived off the said property under sale or part thereof owing to the above reason, the First Party will be liable to indemnify the Second Party to the extent of loss sustained by the Second Party with costs and damages etc.
3. That the First Party will deliver/handover the vacant peaceful possession of the above said property along with its relevant documents, to the second party or his/her authorised person/nominee at the time of execution of the final sale documents.
4. That till the time of execution of proper sale/transfer documents in favour of the second party or his/her authorised person/nominee, the first party is bound to pay all the electricity, water, house tax and other bills if any regarding the above said property and thereafter the same shall be paid by the second party.
5. That after receiving the balance amount of the property the first party will execute the documents regarding the sale/transfer of the above said property in favour-of the second party or its nominee/authorized person.
6. That any payment required for getting the NOC from the Builder, will be paid and borne by the First Party / Seller.
_______
This was signed by me 30 days ago, If buyer doesn’t pay me balance amount in next 30 days what options I have.
In that case how can I cancel agreement.
Pls guide
Asked 3 years ago in Property Law
Religion: Hindu

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3 Answers

Agreement is badly drafted 

 

2) there is no period mentioned within which balance amount is to be paid

 

3) in other words time is not essence of contract 

 

4) there is no forfeiture clause .in event buyer fails to pay balance amount within 30 days or so you cannot cancel agreement and forfeit earnest money 

 

5) you can issue legal notice to buyer to pay balance amount .if he does not pay refund his advance money and cancel agreement 

 

6) buyer may refuse to accept refund and file suit in district court seek stay order restraining sale of flat by you 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

There's no specific time or any restrictive clause for forfeiture found in the agreement for sale.

Hence the agreement shall be deemed to be valid till three years from the date of execution..

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

You can execute a fresh cancellation deed to cancel it if the same is registered you need to also register the cancellation deed too

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

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