Issue buyer legal notice that since he has failed to make balance payment agreement stands cancelled 

2) to execute deed of cancellation of agreement 

3) you cannot sell to another purchaser as you have already executed registered agreement with earlier purchaser 

1.  Send a legal notice to the buyer for honouring the time mentioned in the agreement of sale, i.e., one month. It's a breach of contract on his part.

2.  It will be illegal to go ahead with another buyer, when the agreement of sale is subsisting with the first buyer.

3.  As I have mentioned in (1) above, send a legal notice to the buyer to act as per the terms and conditions detailed in the agreement of sale.

1. The sale agreement is valid for three years, however based on the terms of the registered sale agreement, you may issue a legal notice for cancelling the sale agreement.

2. Yes, it will be illegal to sell the property to a third party while a registered sale agreement is existing.  

Dear Client,

In the Present Scenario, you may consider the Indian Contract Act, 1872, under which, the failure of the purchaser to pay the full amount within one month, as agreed in the registered Agreement to Sale, constitutes a breach of contract. While this breach makes the purchaser liable, the agreement remains valid until formally cancelled or declared void. Furthermore, according to the Transfer of Property Act, 1882, an Agreement to Sale does not transfer ownership but creates a contractual obligation, meaning selling the property to another buyer without cancelling the first agreement could expose you to a legal action. However, to proceed further with this, you may send a legal notice to the first buyer citing the breach, and demanding cancellation of the agreement. However, if he continues to delay, you can take the initiative to draft a cancellation deed, clearly stating whether you intend to refund or forfeit the advance payment of ₹1. In case of non-compliance or not co-operating to any of your actions, you may file a suit under the Specific Relief Act, 1963, seeking a declaration that the agreement is void due to non-performance.

Hope you find this answer beneficial for resolving the dispute.

1. Breach of Contract:

   • The buyer's failure to pay the full amount within 1 month constitutes a breach of the agreement to sale, especially since the timeline is specified.
   • Issue a legal notice to the buyer to cancel the agreement, stating the breach.

2. Selling to Another Buyer:

   • You cannot legally sell the property to another buyer until the first agreement to sale is cancelled. Doing so may lead to legal complications.

3. Actions to Take:

   • 
     Send a Legal Notice: Demand immediate cancellation of the agreement within a specific timeframe.
   • 
     File a Suit for Cancellation: If the buyer continues to delay, file a civil suit for cancellation of the agreement to sale in court.
   • Return the advance (if required) after deducting costs as per terms of the agreement.

Proceeding legally ensures the cancellation is valid and protects you from disputes with the new buyer.

For detailed, personalized advice, consider a phone consultancy.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

Thank you.

Shubham Goyal

1. yes there is a breach. the agreement is voidable at your instance

2. the subsequent buyer will not buy unless a cancellation deed is registered with the first buyer

3. you will have to sue this buyer for a declaration that the agreement for sale is validly terminated by you and for a direction for registering the cancellation deed 

if you make an agreement for sale and register it on the insistence of the bank of the buyer then always take a special poa from the buyer which must be irrevocable so that using the same you can register a cancellation deed upon breach by the buyer and in his absence

1. If the agreement is having clause that the purchaser will pay the remaining amount within one month , then non-payment the amount within this period can be a ground for the cancellation of the agreement. 

2. Yes

3. Send a legal notice to cancel the agreement 

Dear Sir,

You may get issue a legal notice cancelling the agreement as he violated the conditions and forfeit entire advance amount. Let him go to the civil court. Get execute another sale agreement in favor of new purchaser. 

My answers are as follows:

1. Does him not paying within 1 month breach the contract and make the agreement to sale void?

Ans: Yes.


2. Will it be illlegal to go ahead with another buyer without cacncelling the 1st registered agreement to sale void?

Ans: First issue a notice to cancel the first agreement and forfeiting the advance. 

3. What other action do you suggest ?

Ans: Enter into fresh sale agreement with prospective second buyer.