Sale agreement expired Seller asking for more money to close loan
Sir I have given token amt of 3 Laks to seller as cheque and did the sale agreement for 30,00,000/- value for 45 days.
The deal was done through a dealer. I got my loan disbursement in 6-7 days after agreement and I told dealer to ask seller to settle his home loan which he took on property. Initially seller told that it will took 10-15 days to close his loan and get all property documents but after 45 days gone he still seller did not settle his loan and now he is demanding all loan amount to close his loan which is around 9 lakh. and also saying that since sale agreement is expire, so he will make new agreement only for 2 lakh and if I cancel deal he will not return advance money.
but as per agreement, it says
"If the second party fails to make the payment of the balance amount as agreed upon the transcation will be considered as cancelled and the advance money stand forfeited and if the first party refuse or fail to complete the formilities with the prescribed period the second party shall be entitled to claim and receive the double amount of the advance money paid to first party or can get the transaction completed through the court of law through specific performance at the cost of first party."
Asked in Property Law from Bhiwadi, Rajasthan
1) seller is bound to return your advance amount of Rs 3 lakhs
2) in fact under the agreement you are entitled to be paid double the amount
3) in the alternative you can file suit for specific performance as seller has failed to fulfill the formalities of execution of sale deed although you had offered to pay the balance consideration
4) contact a local lawyer and issue legal notice to the seller
I told seller that I can pay 2 lakh more and get new agreement of 5 lakh but he want 9 lakh to close his loan which I dont have.
and Sir how much will it take to close the settlement through court?
Asked 1 year ago
1) what is guarantee that seller will proceed with entering into sale deed if you disburse balance 9 lakhs . ?
2)there is no question of payment of further Rs 2 lakhs .
3) if you file suit for specific performance it may take around 10 years to be disposed of . depending upon pendency of cases in your city
4) seller who does not honour his commitments cannot be trusted with further funds
First of all you should have made your intention to enforce the sale agreement before the expiry of the agreement period by issuing a legal notice expressing your willingness to perform your part of the contract by paying the balance amount of sale consideration and get the sale deed executed in your favor at your expenses and askeed him to notify you the date and time to perform his part of contract as per the sale agreement. If he has not responded properly or not complied with the demand made, you should have move the court with sa suit for specific performance of contract. even now the contract or sale agreement is valid for three years though there is a specific time stipulated in the agreement, you may issue a legal notice and then approach court seeking relief and remedy.
1. You did not seem to have exercised due diligence through lawyer before entering into the sale agreement. Unless the loan had been repaid in entirety by the seller you should not have made the agreement with him.
2. Before the seller issues a legal notice for cancellation of agreement you should issue a lawyer's notice to him to demand that he should honour the agreement to execute the sale deed in your favour, or in the alternative the refund of the advance paid to him. It is most likely that the seller will refuse to accede to either of the two demands, in which event you will have to file a lawsuit against him to demand the refund along with compensation for breach of contract.