Cancel agreement with buyer . Return his advance
execute fresh agreement with third party
on receipt of full consideration execute sale deed in his favour
Sale agreement for Land (Buyer on sale agreement wants to transfer sale deed rights to a 3rd party)
Hello, As a Seller (Party 1), my relative in India has signed a Land (plot) sale agreement with a Buyer (Party 2) and received advance from him. The agreement has a clause that the Buyer (Party 2) can transfer all rights vested in the Agreement to anyone else or gets the sale effected in the name of his/her nominee. Buyer (Party 2) wants to exercise the clause and transfer rights to a 3rd person (Party 3) who is a friend but not necessarily a blood relative or even a distant relative of Buyer (Party 2). To exercise the clause, he is suggesting that the Seller (Party 1) receive payment from that 3rd person (Party 3) for the entire amount first "without" changing the sale agreement with Buyer (Party 2) by just adding reference to the payment transactions from the 3rd person (Party 3) on the sale agreement. Once the entire payment is received from the 3rd person (Party 3), the actual sale deed can be executed with 3rd person (Party 3); following which the advance payment from the Buyer (Party 2) listed on the sale agreement is returned and the sale agreement with Buyer (Party 2) is voided. The question is as follows: As the seller, if I am to honor the said clause in the agreement, what would be your recommendation to go about it? Is it to safe to proceed as the Buyer (Party 2) is suggesting? or Should I cancel the current sale agreement with the Buyer (Party 2), return his advance, and sign another sale agreement with the 3rd person (Party 3) before accepting any money from the 3rd person (Party 3)? Thanks!
Asked 3 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
5 Answers
If there is a condition imposed in the sale agreement that you can execute the sale deed in favor of the buyer or anyone of his representative, then there is no legal infirmity to abide by the conditions.
If the sale agreement is by an unregistered document, you may better cancel the sale agreement jointly with the buyer and enter into either a fresh sale agreement or a sale deed itself with the new buyer to avoid any legal complications that may arise in future.
You can cancel the agreement after paying him his advance its a weird clause
1. You can register the sale deed in favour of the Party 3 wherein you should make the Party 2 as the confirming Party to avoid any future problem from his side.
2. You should return the advance payment received from Party 2 through Bank transaction and not by cash.
Dear Client,
It is recommended to cancel the current sale agreement with Party 2, return his advance and sign another agreement with Party 3 before you accept any further money in order to avoid future ambiguity.
Thank you.
