Legal Question in Real Estate Law in India

regarding agreement of sale

We have taken token advance and signed an agreement of sale with the buyer on Rs.100 stamp paper. The agreement contains details of seller, buyer, property, total sale value and mentions token amount paid as well as date by which entire balance payment will be made. There is no penalty clause and forfeiture clause in the agreement. The buyer now seems to be having problems arranging the entire amount and is avoiding our telephone calls. What should we do if he does not pay the entire amount by the final date mentioned in the agreement of sale. Will the agreement be considered null and void and automataically cancelled if he does not pay by that date.


Asked on 8/21/07, 5:26 am

4 Answers from Attorneys

Re: regarding agreement of sale

you may sent a notice mentioning that the purchaser shall pay the ammount till final day otherwise the agreement shall stand terminated and if buyers fails to pay then finally terminate the agreement by legal notice.

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Answered on 8/22/07, 10:24 pm
Shrichand Nahar S.V.Nahar, Advocate

Re: regarding agreement of sale

Agreement does not become null and void and will not stand cancelled automatically.

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Answered on 8/22/07, 12:48 am
kavitha balakrishnan kpp associates

Re: regarding agreement of sale

it is not that way ... call upon the buyer to pay the balance amount through a legal notice and more over state that incase he fails to pay by the due date the agreement will become void and the amount shall be forfeited etc.,

for further details.. call us... professional charges apply!

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Answered on 8/22/07, 3:27 am
Prabhat Shroff Shroff & Company

Re: regarding agreement of sale

No agrstands cancelled automatically. You have to give a notice to that effect to the buyer.

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Answered on 8/21/07, 5:50 am


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