Hi I am the seller of an apartment and my property is located in Pune. I found a buyer, he paid a token amount, we registered an agreement to sale at the Registrar's office and he applied for loan. I stay in Bangalore. Now 2 months have passed and he has been making excuses citing different reasons and thus delaying the sale process. He also said he agrees to cancel the deal if i am in a hurry. Accordingly I told him to cancel the Agreement to sale. HE said he has spoken to his lawyer and the lawyer said only an application from the buyer is required to cancel the deal and he will get the stamp duty amount less 20% deduction within 2 years. My question is whilst we have mutually agreed to cancel the agreement to sale over WhatsApp, can he have it canceled unilaterally ? Even though he has told me it can be done, I do not trust his words.
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It is a registered sale agreement, hence a mere cancellation over whatsapp or by a letter is not valid because it will reflect in the encumbrance certificate.
In such a case you may find it difficult to sell your property in future
Therefore it is pertinent that you both jointly execute a registered cancellation deed.
Execute deed of cancellation of agreement by mutual consent
register the deed of cancellation
it cannot be cancelled unilaterally
If you both consent then it can be cancelled unilaterally. Only if the agreement is registered needs registered cancellation deed
To clarify there is no sale deed here . Just a REGISTERED AGREEMENT TO SALE. My simple question is - my buyer says his lawyer will file an application at the sub registrar office and cancel the “AGREEMENT TO SALE”. My presence (seller) is not required . IS THAT POSSIBLE?
How can agreement for sake be cancelled unilaterally?
presence of both parties is necessary
It is not a proper way to cancel the registered sale agreement.
Both the parties are required to be be physically present before the sub registrar concerned and execute a registered cancellation deed jointly to cancel the registered sale agreement.
The encumbrance created by the registered sale agreement will stand nullified only after completing this process.