Is cancellation clause must in agreement for sale?
I am from Mumbai and have identified a resale property and paid the token amount to the seller. I have also secured a loan on the property. We are in the process of finalizing the agreement for sale.
Unfortunately my lawyer and the dealer are saying there is no need to put cancellation clause in the agreement because if any party defaults and is not able to carry on with the deal after the agreement for sale is registered, both will have to do a cancellation deal and get it registered. They say without the cancellation deal, the property cannot be sold to any one else so the seller will have to pay my contribution back and only then the cancellation deal will happen.
Query: I am insisting on putting the cancellation procedures in the agreement so both the parties are clear and don't have to go to the court to settle the default scenario.
What will happen if the cancellation clause is not in the agreement and either party defaults and not able to carry on with the deal?
Asked 8 years ago in Property Law
Religion: Hindu
Thank You all for your advice. I was able to get the cancellation clause added to the Agreement for Sale and got it registered. I am availing a loan from the bank for this property and I have already paid my contribution while doing the Agreement for Sale.
Now I have already paid the 5% Stamp duty and Registration charges (Rs. 30,000) while doing Agreement for Sale. However, I would also like to get a Sale Deed Registered while handing over the bank contribution and get the possession so that I have complete documentation of the transaction.
Query : since I have already paid the registration charges and stamp duty, what would be the value of stamp paper on which sale deed would be written and registered. Also, do I have to pay the registration charges of Rs 30,000 again for executing the sale deed?
PS: I am purchasing this flat in mumbai.
Asked 8 years ago