Is it safe to buy a property where a 2010 Registered sale agreement is not canceled?
Land owner had a registered sale agreement with the purchaser
Sale consideration was 2 crore 60 lakhs
Cheques given for 2 crore 45 lakhs
( 80 lakhs cheque not cashed)
Terms were
1. If any post dated check gets dishonoured, the purchaser should come into an agreement to settle money within 15 days
If the above condition is not met the sale agreement stands canceled and land owner can sell the land to any other 3rd party
2. There’s NO TIME LIMIT to execute sale deed as almost entire sale consideration has been paid, the purchaser can register any time.
Agreement happened on 24/10/2010
Till this date 1 crore cheques was encased
Land owner died on 09/11/2010
Till this date Total 1 crore 60 lakhs cheque was encashed
After owner death, the family asked purchaser to provide new cheque on legal heir name
But they didn’t
Legal heirs became new land owner after the fathers death
Also the purchaser went absconding as he was caught under PACL land scam
Land owner send legal notice to agreement holder to finish the agreement, But he never responded
After waiting for 10 years
In 2021 land owner entered into joint agreement, converted land to site and sold all the sites
The land Is DC converted
Now land owner has built 1 house and many site owners have constructed houses.
There are around 20 houses in the 45 site layout
In 2023 the land owner filed a case in court to cancel the 2010 agreement based on the above mentioned clause 1
2 years have passed and the agreement holder hasn’t appeared in the court
Seems like an ex party judgment can happen.
My question is
Is it safe to purchase site and build a house over there?
What will be risk scenario?
How many percent risk is there?
Few lawyers told risk is 15% and ex party judgment will happen in 1 year
If the ex party judgement doesn’t happen and I build a house, what are the consequences?
Can the agreement holder win the case? If he wins and I have constructed house, will it affect my possession? Will the house get demolished? Or will it just be a compensation settlement?
Asked 10 months ago in Property Law
Religion: Hindu
My question is- what is the worst case scenario?
1. Will I lose the site? If yes will I compensated for that?
2. Will the agreement holder demand money?
What could happen?
Asked 10 months ago