Time was essence of contract
Buyer has failed to make payment within time stipulated in contract
you are at liberty to sell ,rent your property to third party
refund the advance money received if there is no forfeiture clause in contract
Sale agreement cancellation by Seller
Dear Experts Kindly advise on my below query. I have a property in Sonipat (Haryana) while I work in Singapore. 1. In Jan-2023, I went to Sonipat on annual vacation and I signed a notarized contract to sell my property. 2. Validity of the sale agreement was till 30-Jan-2023. As per the agreement purchaser paid 1% of the sale amount as a deposit. 3. Purchaser failed to complete the deal by 30-Jan-2023. As I was returning back to Singapore, the purchaser requested to extend the agreement till 30-Jun-2023 and paid another 1.5% of the sale amount. This extension was written and signed on plain a4 paper. 4. Though the purchaser was in touch with me on WhatsApp but he never put forward his readiness to complete the deal till 30-Jun-2023. 5. Meanwhile he tried to encroach on the property by dumping his waste items inside the property's front yard. I felt offended by his act and on 20-July-2023, I send him a legal notice to terminate the deal as the sale agreement window was already over. 6. Purchaser replied to my legal notice and in his reply notice he mentioned that - 6.1 He wants to sign the deal within 1 week else he will go to court to enforce the deal. 6.2 He threatened to lodge FIR in case I sell/rent property to someone else. Kindly suggest to me the best way forward. Can I sell/rent my property to 3rd party? What legal steps purchaser can take now and what legal options are there for me? Many thanks in advance. Regards Kapil
Asked 9 months ago in Property Law
Religion: Hindu
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9 Answers
The matter evolves property dispute and no criminality is involved so as such no criminal case is made out. As the agreement was to be ended by 30.6.23 but you had hurriedly terminated the agreement. Your should have to lodge police complaint against the buyer for encroachment in your property and after 30.6.23 the agreement was required to be terminated. You should have to give opportunity for sale deed but as you had hurriedly terminated the agreement by 20.6.23 hence purchaser was within his right to call for sale. Consult a lawyer and move strategically.
1. It's not clear in your query as to the sale agreement was with possession or without possession. If it were to be without possession, then the prospective buyer's action in dumping the waste items inside your property is not acceptable till the registered sale deed in his favour is completed.
2. Since the sale agreement is not registered and only notarised, use breach of contract clause if it's there in the sale agreement to your advantage and send him a legal notice for cancellation of the sale agreement due to non-adherence of terms & conditions such as dumping waste during the course of sale itself. After sending notice for cancellation of sale agreement and if no reply is received from the buyer, you can sell/rent the property to any third party.
3. Buyer may take a stand that legally sale agreement would be valid upto 3 years and he may take recourse in that line.
Yes, you can sell the property to a new buyer. The amount received by you is considered as forfeited. You don't have need to return the earnest money.
You should also file a suit for termination of the agreement in the civil court.
The buyer has not honored the sale agreement and it expired even after the extension/renewal.
Besides yo have terminated the agreement owing to breach of conditions among other aspects.
The buyer cannot take any action as he has mentioned in his reply notice, which will not be maintainable even if he is trying to take any action.
Therefore if this sale agreement was entered b an unregistered documents, then you just don't be worried about it, you can proceed to sell the property.
Dear Client,
Time was of the essence of the contract, and the buyer has failed to make the payment within the specified timeframe as stated in the agreement. Consequently, we reserve the right to sell or rent the property to a third party. In the absence of a forfeiture clause in the contract, we will refund the advance money received from the buyer.
if he has already breached the sale agreement then he can’t go to the court and you can deduct the amount paid by him as per the agreement terms.
No FIR in the case made out. Matter civil in nature.
If he file a case of specific performance, than first he have to proof that he was ready and willing to perform his part of the contract right from the date of the contract up to the date of the filing of the suit.
Let him file case, you should have filed FIR against him of encroachment.
Go ahead with 3rd party.
- If you have already terminate the agreement after sending a legal notice , then upon not approaching you within the time as mentioned in the notice, you have your right to sell the property to another person
- However, the purchaser having his right to get refund of the amount paid by him after approaching the court
- Since, you have already terminated the agreement , then no offence made out , and an FIR cannot be lodged , if you sold the property .
