• Agreement to Sale

I entered into an agreement to sale a party ( Registered) for my SITE Sale ( Bangalore) 

Now the party is unable to complete the sale as he is not showing interest 

Agreement entered with the validity of 11 months and he has paid cheque and cash ( Cash actually not received by me) Agreement date was last year October 2023. Even Cheque is till today not presented he is known to me.. 
Whenever I call/send message he dont answer my phone not replying to my phone call 
I have another seller who is asking to cancel the agreement first. Please let me know how to cancel the agreement and EC from Sub register office
Asked 2 years ago in Property Law
Religion: Christian

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9 Answers

As the original agreement was not registered, there is no need to file anything with the SRO. Issue a notice to the other party stating that on account of his/her default in honouring the sale agreement on or before its expiry date, the agreement has automatically lapsed. You may then proceed with sale of the property to a new buyer.

Swaminathan Neelakantan
Advocate, Coimbatore
3071 Answers
20 Consultations

Agreement can be canceled in terms of agreement, by efflux of time and also by mutual agreement. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

If the sale agreement is executed by a registered document then it is pertinent to execute a registered cancellation deed jointly along with the buyer.

The registrar will not permit an unilateral cancellation.

If the agreement period is expired and the time has been made as essence of contract then you may issue a legal notice to the buyer communicating your decision to cancel the sale agreement owing to his failure to perform his part of contract within the stipulated time period.

You can instruct him to come to the sub registrar's office to execute the cancellation deed jointly on a date and time fixed by you in the legal notice, on his non compliance you may proceed with the registration of cancellation of sale agreement unilaterally, if the sub registrar refuses to entertain despite showing the proofs of sale agreement and the legal notice, then you may approach court of law to declare the sale agreement as null and void and direct the sub registrar concerned to permit you to register the same.

 

T Kalaiselvan
Advocate, Vellore
90028 Answers
2497 Consultations

Registered agreement for sale cannot be cancelled unilaterally 

 

file suit to set aside registered agreement for sale 

Ajay Sethi
Advocate, Mumbai
99826 Answers
8148 Consultations

Dear Client

Review the Agreement to Sell:
Carefully review the agreement to sell that you entered into with the buyer. Pay close attention to any clauses related to cancellation, default, and dispute resolution.

Attempt Communication:
Continue attempting to contact the buyer through written correspondence (emails, letters, text messages, or notices) and document your attempts. Request the buyer to mutually cancel the agreement if they are unwilling to proceed with the sale.

Send Legal Notice:
If the buyer remains unresponsive and unwilling to cooperate, consult with your lawyer to draft a legal notice demanding compliance with the agreement's terms or cancellation of the agreement. The legal notice should specify a reasonable timeframe for the buyer to respond.

Proceed to Court:
If the buyer still does not respond or refuses to cancel the agreement, you may need to initiate legal proceedings. Your lawyer can help you file a suit for specific performance or cancellation of the agreement in the appropriate civil court.

EC Cancellation:
If the property has been registered and you want to cancel the agreement, you may need to approach the Sub-Registrar's Office where the property was registered. The cancellation process typically involves submitting an application for cancellation along with the relevant documents and paying the necessary fees. Consult with your lawyer for guidance on this process, as it can vary by location.

Recover Earnest Money:
If the buyer has paid earnest money, discuss the procedure for its refund or forfeiture as per the terms of the agreement.

Anik Miu
Advocate, Bangalore
11020 Answers
125 Consultations

An agreement to sale is a legal document that creates a contractual relationship between the seller and the buyer for the sale of a property for a specified price and period. An agreement to sale is enforceable in law, and any shortage of stamp duty can be paid through the court’s order. Such an agreement will be valid for three years from the date of execution.

An agreement to sale can be cancelled by mutual consent of both parties or by operation of law. An agreement to sale can also be challenged in court on various grounds, such as fraud, coercion, undue influence, misrepresentation, mistake, lack of free consent, lack of mental capacity, etc.

Some of the steps that you can take to cancel an agreement to sale are as follows:

  • Obtain a no-objection certificate (NOC) from the buyer stating that he/she has no objection to the cancellation of the agreement and that he/she has received his/her money back. The NOC should also state that the buyer has no claim or right over the property and that he/she releases you from all liabilities and obligations under the agreement.
  • Execute a cancellation deed with the buyer in the presence of two witnesses. The cancellation deed should mention the details of the agreement, such as date, parties, property, price, period, etc. The cancellation deed should also mention the reason and mode of cancellation, such as mutual consent, expiry of period, breach of conditions, etc. The cancellation deed should also mention that both parties have settled all their dues and disputes and that they have no further claims or complaints against each other.
  • Register the cancellation deed with the sub-registrar office where the property is located. You should pay the applicable stamp duty and registration charges for the cancellation deed. You should also submit copies of the agreement, NOC, identity proof, address proof, and photographs of both parties along with the cancellation deed.
  • Update your records with the revenue department and other concerned authorities regarding the cancellation of the agreement. You should also obtain a fresh encumbrance certificate from the sub-registrar office showing that there is no encumbrance on your property due to the agreement.

 

Muraleedharan R
Advocate, Trivandrum
386 Answers
2 Consultations

You can cancel it and move for other buyer. If there any penalty clause you can invoke that and forfeit the money 

Prashant Nayak
Advocate, Mumbai
34550 Answers
249 Consultations

These cases are very common in various Courts of India and Supreme Court of India. I can understand your concern in this regard. My team is dealing with various such cases. As you know that a Sale agreement is an agreement between two parties laying down the terms and conditions and rights and obligations between the parties i.e. the seller of the property and the buyer of the property. It is drafted in order to avoid future legal troubles. 

Legal action can only be taken when already legal notice through Advocate has been served upon the entity or person you wish to bring to court. You can also seek damages in this regard. A legal notice is, hence, formal notification to a person or an entity, notifying the other party of your purpose to commence legal proceedings against them. Legal notice can serve as a target of negotiations among the parties and save time, effort, and money spent in court cases. This Legal Notice can be sent to his registered address, WhatsApp and Email ID. 

This makes the party aware of your complaint. Many times, a legal notice served will bring the other party on heels, and the difficulty can get resolved out of court, too, with fruitful arguments on both sides. If the opposite party is still not heeding to the grievance, one can always start the court procedures after a particular interval according to law. 

Detailed discussion is required in such cases with complete documents. 

 

Gopal Verma

Advocate on Record 

Supreme Court of India

Shri Gopal Verma
Advocate, Delhi
422 Answers
22 Consultations

- If the said agreement to sale not registered from the office of the sub-registrar , then you can cancel the agreement after sending a legal notice to him 

- Further, if registered , then file a declaration suit before the court for cancelling /revoking the said agreement. 

- However, he has right to get refund of the paid amount from you. 

Mohammed Shahzad
Advocate, Delhi
15821 Answers
242 Consultations

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