Legal Question in Construction Law in India

A flat sale agreement was duly executed and registered between the Developer and the flat purchaser. However the flat purchaser has defaulted in making payment as per the payment schedule and is still continuing with the default.

The Developer thereafter wrote several reminder letters to the Purchaser and still the flat purchaser did not make the payment and still continues to default in making payment.

The Developer has written a letter stating the agreement stands terminated and further the Developer wants to execute a deed of cancellation (which will legally get the agreement for sale cancelled) however the flat purchaser is not ready to execute the deed of cancellation.

Kindly advice

1. if the developer can sale the flat to other intended buyers ?

2.Does the title of the flat get transferred when such falt agreement is made or due to the effect of the termination clause the title remains with the developer?

3. Is it illegal to sale the flat without the cancellation deed?

4. Can the developer execute deed of cancellation (One sided)

5. How do the Developer cancel the flat agreement which is duly registered ?


Asked on 5/02/11, 12:25 am

1 Answer from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you have already been answered. you need to follow the process of cancelling the deed by registered it and sending the due notice to other party. mere execution of agreement has no effect on the title of the property and the same remains with the actual owner. yes, the cancellation may be one sided in case the other party fails to appear before the registering authority. the developer can cancel the agreement by executing a deed of cancellation before the same registering authority.

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Answered on 5/02/11, 2:07 am


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