Legal Question in Real Estate Law in India

My wife owns a plot of residential plot in Bengaluru. We have entered into an agreement for sale. The agreement for sale is made for Rs.40 lakhs. Advance is mentioned as Rs.10 lakhs cash and Rs.5 lakhs by cheque. In the agreement it was mentioned as 25% penalty (of 15 lakhs) if any of us back out to pay to the other party. The agreement for sale has been signed by both the buyer and seller and witnessed by self and the buyer's side. Subsequently as per the discussion had with the buyer, I made corrections in one page of the agreement for sale mentioned the penalty clause as 25% of the initial token amount of Rs.5 lakhs received on 20.12.12 by way of a cheque and signed off by both the buyer and seller and witnessed by me and buyer's brother from the other side.

Now, due to some family sentiments, we are not willing to sell the property. Can i close the deal by paying the penalty of 25% of Rs.5 lakhs (i.e.Rs.1.25 lakhs ) to the buyer? How can i deal with the situation if any objections come from the other side. Kindly advise.


Asked on 1/08/13, 4:12 am

3 Answers from Attorneys
uttam Tibrewal

dear client...

As the clause has already been mentioned in the agreement so yes you can cancelle the sale procedure .... just send a notice to the buyer that you not willing to sell the said land due to some family problem and as per the agreement ur ready to pay the penalty... and attach the cheque along with the letter ... do keep the xerox of letter as well as cheque...

In doing so the buyer can not take any legal action against you nor can make any claim or bind you from selling the plot...

if you need any further decision you can mail me at [email protected]

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Answered on 1/08/13, 5:41 am
Shrichand Nahar S.V.Nahar, Advocate

May be.

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Answered on 1/12/13, 10:48 pm
Sanjay Kalra Sanjay Kalra & Associates

It is difficult to give you legal advice on an inadequate information and without perusing the agreement..........Please check Sanjay Kalra and Associates on the internet to know more about our law firm and the legal services we are rendering for our clients from all over the World.

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Answered on 2/21/13, 3:45 am


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