• Cancellation of agreement for sale

I have an ancestral property which we the descendants wanted to dispose off.
We entered into an agreement for sale with a property dealer but did not put any time clause in it.
The mutation and all dues from development authorities etc were also obtained by us more than a year back.The purchaser had paid us 10 lacs at the time of agreement but is now not paying the balance amount and dilly dallying on some pretext or the other.We have issued two legal notices to him also which he is not replying to.
What is the way out for us
Asked 7 years ago in Property Law
Religion: Hindu

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19 Answers

It was great mistake on your part but notmentinoing the timelimit.

So the buyer can take time though the time must be reasonable.

So to expedite the matter send him a legal notice fixing a time limit like giving him another 1-2months.If he does not complete the purchase by that time you may proceed to cancel the agreement, refund the money and make agreement with another buyer.

Devajyoti Barman
Advocate, Kolkata
23220 Answers
514 Consultations

No time limit is decided by mutual agreement only.When it is missing then it is on the discretion of the court to determine what is reasonable time.

Devajyoti Barman
Advocate, Kolkata
23220 Answers
514 Consultations

Hi

you can cancel the sale agreement after sending the notice , if you have a time clause in the sale agreement, stating the payment has to be paid within a certain period and if fails to do so the deal shall be void.

The purchaser failed to perform the contract , so the seller can take steps to call off the deal.

Regarding the Mutation if it has not been completed , you can send the notice to Talaati office where mutation happens stating the reasons of non-payment and since the deal has not been completed ask the officer to keep it pending til you obtain and order from court.

If the mutation is already done you can raise dispute and stop further transfers. once you get an order from the court regarding the cancellation of the agreement and sale further steps can be taken in terms of transferring it back.

uit for the specific relief.

Thresiamma G. Mathew
Advocate, Mumbai
1645 Answers
212 Consultations

1)in your agreement for sale time was not essence of the contract

2)since time was not essence of contract purchaser can make balance payment within period of 3 years from date of agreement

3) if he fails to make balance payment within period of 3 years then cancel the agreement

4) in alternative file suit for specific performance of contract

Ajay Sethi
Advocate, Mumbai
96940 Answers
7822 Consultations

you cannot cancel the agreement unilaterally

2) time is not essence of contract

3) purchaser can make balance payment within period of 3 years

Ajay Sethi
Advocate, Mumbai
96940 Answers
7822 Consultations

it is necessary to peruse agreement for sale to advice further

2) is there termination clause in agreement for sale ?

Ajay Sethi
Advocate, Mumbai
96940 Answers
7822 Consultations

Dear Client,

First of all, when the agreement was executed, Since time is not the essence of contract, it cannot be repudiated by you on default of buyer, ( terms of agreement imp. ) but in cases where time clause is lapsed still the terms of the agreement needed to be honor in reasonable time. ( Date of Agreement ? )

Next - you can file can file suit for specific performance of agreement or can forfeit earnest money for non performance of agreement by giving legal notice in this regard.

Remember - Time is imp. how much lapsed.

Yogendra Singh Rajawat
Advocate, Jaipur
22991 Answers
31 Consultations

Hi

In response to your post, assuming that there is clear title flow from your ancestors to you, the same is answered as follows:

Firstly, the terms and conditions of the Agreement is a must to give clarity to your post.

What is the total sale consideration ? It will also have bearing on your issue.

Share the contents of two legal notices got issued by you. What for you got issued the said two notices ? The contents of the same will give us clarity based on which you can be guided accordingly.

Laws of the land and fundamental rights permit the citizens of India to raise issues pertaining to their respective fundamental rights before appropriate Courts of Law.

Going by your own post i.e., the other party is dilly-dallying and delaying the contract, if you go to court of law for adjudicating your issue, it can be concluded that substantial time will be consumed for first level of litigation itself.

The case on hand is pertaining to Property it can go to various Courts before logical conclusion is reached.

I am not trying to scare you, I am just bringing the real facts which you may face and I am being practical and realistic.

Further clarity can be given if you share the details as desired.

Good Luck !

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

There os no time limit.

You can file a civil suit for cancellation of the agreement

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

And may subsequently file a criminal complaint against the property dealer for cheating and fraud.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

Sir mentioning of a time period is essential in an agreement. Since you have not mentioned it, therefore the second party is taking it as an advantage.

1. You can send a notice to the other party that they have to pay the remaining amount within 2 months and if they fail then the agreement will be cancelled.

2. You can file a case for specific performance of the contract.

Hope my reply helps you.

Johnu Kanta Bhuyan
Advocate, Guwahati
194 Answers
3 Consultations

Move to the court for specific performance of this agreement to sale.

Just because no time limit is specified in this agreement to sale within which the sale is to be concluded, doesn't means that the sale can be postponed till eternity.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Alternatively, you can send a notice of cancellation of this agreement to the concerned dealer.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Hi, you can file a civil suit for specific performance in court .. If he do not turn up in the court , then the court will pass a judgment in your favour and you can sell the property to another buyer ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

You can immediately go before the court of law, there is no time limit for the purchaser.

Laksheyender Kumar
Advocate, Delhi
734 Answers
2 Consultations

You can either approach court with a sit for specific performance of contract seeking to direct him to perform his part of contract or to cancel the same by refunding the advance received as per the terms and after deductions of all expenses including the litigation expenses.

Or, you may issue a legal notice stating that since plenty of opportunity is given and as he is not turning up, the contract stands canceled from the date of this notice.

You can refund the amount on his demand after deductions as per terms of the contract.

Please be aware that the contract shall remain valid for a period of three years from the date of the contract or agreement.

T Kalaiselvan
Advocate, Vellore
87142 Answers
2339 Consultations

We dot mind cancelling the agreement for sale but can we do it if he is not agreeable and how much time do we have to wait for that if we go to court

In the normal circumstances the agreement is valid for three years or as per the court directions if you approach for cancellation of the agreement.

T Kalaiselvan
Advocate, Vellore
87142 Answers
2339 Consultations

Is there any time limit given to the purchaser as per local city laws before which a seller can not cancel the agreement for sale?

It is three years from the date of agreement.

T Kalaiselvan
Advocate, Vellore
87142 Answers
2339 Consultations

1.If you have complete registered agreement then file a recovery suit.

2.If property is under your possession then cancelling is beneficial else if it in purchaser's hand then don't ever go for this.

3.No there is no such time limit.

Narendra Kumar Agnihotri
Advocate, Kanpur
7 Answers
2 Consultations

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