Registered sale deed without possession
My father owns a retail store(nearly 30 yrs old) and he got into sale deed agreement with another person to avail some funds in 2006. This agreement was over a period of 4 years where my father borrowed & was supposed to return the funds back within 4 years of time, else the property will belong to this person if failed to pay. There was also a monthly rental which was agreed to be paid.
Due to some reasons, my father could not pay the funds back then but he continues to pay the monthly rental for our property till date. This person now wants to us to move out from our shop and he is not agreeing to accept the money which was agreed in 2006. He is not interested to sell back to property to us and asking us to vacate.
We are totally shattered since this is our family business and this shop means everything to us. I would sincerely request you to guide us on how to safe guard our store.
Asked 3 months ago in Property Law from Bangalore, Karnataka
Your father should refuse to vacate . Let borrower file suit against your father for specific performance
2) was the sale agreement regd ?
3) is there any clause that if father failed to deliver possession what wiuld be the consequences
4) it is necessary to peruse the various documents cited by you to advice further
1. As the agreement, your father was supposed to return the borrowed money after 4 years which he could not do,
2. So, as per the said agreement the property has been owned by him,
3. It will be prudent on your part to settle the matter with him since the legally he is in a stronger foot.
The agreement requires to be seen to advise you more properly.
In the meantime nothing to get worries. Ask your father to carry on the business as usual.
It is not easy to evict the tenant from the premises.
The landlord will have to file a civil suit for his eviction.The success of such suit depends on many factors and it is time consuming.
So not fret and meet a local lawyer and take advise after showing the agreement.
From your narration it seems that a mortgage deed, not a sale deed(as you put it) was executed between your dad and this man. In a mortgaged property the mortgagee has the right to sell the property under mortgage to apply the sale proceeds towards the recovery of the amount lent by him. He can successfully evict you through a suit for recovery of possession. To restrain him from getting the possession of the property without following the due course of law you may file a suit for injunction against him.
The sale agreement after three years of its execution shall stand bared by limitation until there is a specific mention about it in the sale agreement.
In this case it is for 4 years hence time is essential for contract.
He may not be able to enforce the sale agreement except on the basis of the rental payments being mad to him.
The situation is to be handled in a tricky way, you may consult a local lawyer on such further issues.