Clauses to incorporate in House Sale Agreement to deter re-sellers or agents from using delaying tactics. Setting up House Sale Agreement contract expiry terms explicitly and termination after 90 days. Specific concerns are about agents disguising as buyers and dependent on another property sale or bank loan approvals. Builders approaching about settlement after 90 days in the name of one of their business partners (Dodgy Tactics).
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it should be mentioned that time is essence of contract
2) full payment to be made within 90 days . no extension would be granted
3) in case balance payment not made within 90 days agreement would stand terminated and earnest money received forfeited
4) dont enter into any agreement wherein buyer does not have pre approved bank loan for the sale price .
Contract for same.
And time should be essence to the contract to keep the contract more protective and enforceable on time.
Yes, it's possible to have specific clauses in the sale agreement to prevent delaying tactics and resellers.
You need to incorporate such specify averments in the said agreement to avoid hassles.
You may engage any lawyer in this forum and request him/her to draft you an agreement to suit your specific requirements.
- Since, there was mention in the agreement that the execution date of deed and to pay the remaining amount is 90 days from the date of sale agreement, then the buyer is bound with the terms of the agreement , and the agreement can be cancelled after sending a notice for the same.
- If 90 days already passed , then you can terminate the agreement after sending the notice to the builder or buyer
What is your query??
The above section deals with the effect of failure to perform at a fixed time, in contracts in which time is essential. The question whether time is the essence of the contract, with reference to the performance of a contract, what generally may arise for consideration either with reference to the contract as a whole or with reference to a particular term or condition of the contract which is breached. In a contract relating to sale of immovable property if time is specified for payment of the sale price but not in regard to the execution of the sale deed, time will become the essence only with reference to payment of sale price but not in regard to execution of the sale deed. Normally in regard to contracts relating to sale of immovable properties, time is not considered to be the essence of the contract unless such an intention can be gathered either from the express terms of the contract or implied from the intention of the parties as expressed by the terms of the contract.\
Relying upon the observation of this court in N.Srinivasa v.
Kuttukaran Machine Tools Ltd. [2009 (5) SCC 182] that "in the contract relating to immovable property, time cannot be the essence of the contract", the appellant put forth the contention that in all contracts relating to sale of immovable property, time stipulated for performance, even if expressed to be the essence, has to be read as not being the essence of the contract and consequently the contract does not become voidable by the failure to perform before the specified time. A careful reading of the said decision would show that the sentence relied on apparently was not the statement of legal position, but a conclusion on facts regarding the contract that was being considered by the court in that case, with reference to its terms.
Now what is your query?
You may revert with specific question for which you have approached this forum.
Non-Assignment Clause: Include a clause that prohibits the buyer from assigning or transferring their rights or obligations under the agreement to another party without the seller's prior written consent.
Time of Essence Clause: State that time is of the essence in the performance of the agreement, emphasizing that both parties must meet their obligations within the specified timeframes.
Specific Performance Clause: Include a provision that allows the seller to seek specific performance in the event of a breach by the buyer, which means the buyer may be compelled by a court to complete the purchase as agreed.
Financing Contingency Clause: If you're concerned about the buyer being dependent on bank loan approvals, you can include a clause stating that the agreement is contingent upon the buyer obtaining financing within a specified timeframe. If the buyer fails to secure financing within the designated period, the agreement may be terminated.
Termination Clause: You can include a clause stating that if the sale is not completed within a specified number of days (such as 90 days) from the date of the agreement, either party has the right to terminate the agreement.
Representation and Warranty Clause: Include a clause where the buyer represents and warrants that they are not acting on behalf of any third party or disguising themselves as an agent, and that they are purchasing the property for their own use and not for re-sale.
