Legal Question in Real Estate Law in India

I had registered an agreement for sale with a buyer who did not pay me the full amount post registration he paid less the 10% and rest was supposed to be paid via bank loan. On expiry of the stipulated time to pay i cancelled the agreement through a registered legal notice and have the acknowledgement receipt. however the buyer is not accepting the same and trying to harass me to sell him the flat and not coming to sign the cancellation deed. Since all his effort went futile to pressurize me for last 2 years he has now filed a sp. performance suite stating he was unable to pay since i did not handover the original documents. While he has filed the suit he is not serving any notice on me even after me having a caveat filed. he is trying to block the subsequent sale and wants to buy the property at the old contracted value. My queries are as follows:

1. can i file a suit seeking cancellation of the agreement of sale to clear the title of the property?

2. what are the fees for such process?

3. do i need to inform the registrar office about the cancellation and produce the necessary documents like cancellation notices sent etc? will that free the title issues?

4. Am I bound to sell the flat to him if yes can I ask for current market rate instead?


Asked on 10/29/12, 12:14 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

30.10.2012

Dear Sir / Madam,

The clauses mentioned in your Agreement for Sale are of prime importance in the event that the buyer fails to settle the consideration or part thereof within the time stipulated in the Agreement. If you have specifically mentioned that the Agreement ipso facto comes to an end in the event the buyer fails to settle any amounts due within the stipulated period, you have automatically absolved yourself of all obligations, and there in nothing binding on you, except to refund back monies to the buyer, accepted by you in part settlement of the deal.

What is the justification given by the buyer for retention of the 10% amount. I feel it is worthwhile ascertaining the reason for this retention.

It is always advisable to mutually sort out differences amongst yourselves instead of stretching matters to Court, if possible, by involving parties who were witness to the deal.

1. Not required in order to avoid further complications.

2. Not applicable.

3. Advisable in the event you have no intention whatsoever to go ahead and complete the deal with the buyer. Ensure that you immediately refund all monies accepted on the Agreement, back to the buyer.

4. No, it is best to avoid an untrustworthy buyer, and to do a fresh deal elsewhere.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

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Answered on 10/30/12, 5:29 am
Shrichand Nahar S.V.Nahar, Advocate

1. May be

2. Court fees as per local law of state where suit is to be filed.

3. No

4 You may not

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Answered on 11/19/12, 9:21 pm


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