Vivek (CEO) 20 April 2012

Cancellation of sale agreement

Hi Experts

I have a flat in chennai and i purchased it by loan 2 years ago. Now i would like to sell it since i was moving out of chennai.

I gave my house keys and xerox of documents to a near by house to take care of the house on my absence. He is a land broker. So he told me if at all any party is approaching for the flat, he would be happy to show the house to them. And i told yes. (I know him for 2 years so i had no questions)

For the past 4 months, he calls me up and updates me that someone or the other came and saw the house and when it came to rate (17 lak) they told not interested. I also sent few potential buyers who i got through net to see the house (he showed the house). And even they were not interested and they did even pic my call.

One fine day he called me and told one party is interested and ready to pay 12.75. and he made the situation as urgent that he and the party came all the way to my place that night to see me and get a agreement from me (they paid 50K advance). But this guy had many conflicts with his speaking. Initially he told the party wanted 3 months to make the whole amount ready, till then they will pay the home loan on my behalf. but once he came to met me (500 kms apart) he told party will pay the loan for 3 months and they will reduce it in the remaining amount to be paid. And he was not clear. Since it was late night (1 in night) i also signed the agreement papers.

I had a feel that this guy is cheating, and i started enquiring about him. i called the person who i sent to see the house (via internet) and asked him how this guy behaved when he went. He told me that, this broker had no intention of selling that house and he made statements on the negative side like "This property is not worth 17 lak", "There is another porperty which is 2 BHK, new in this rate" and all that.

And on further investigation, i found that the party who he bought was his friend. So i think he is playing around me and trying to buy the property for lesser price and sell it huge.

So what should i do now, i am willing to give back what he paid and cancell the agreement. Let me know how to go with this. And what i should tell him (its been 4 days now since we signed the agreement, and agreement only has. i got 50 K and remaining will be paid within 3 months. Nothing more.

Thanks in advance, sorry for the long post, really looking for help.

Vivek

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3 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 20 April 2012

Dear Querist,

Legally just because you have agreed to sell the property at a price that is improvident, is not ground enough in itself for you back off the agreement, however what you can do is that you can plead that your consent to the agreement was vitiated by undue influence or fraud. The dealer was your agent for the purposes of the sale of this property. If he was instead of protecting your interests was doing his best to obtain a secret private advantage. You can avoid this agreement. Try getting on record somehow how he has tried discouraging other genuine buyers from your property (Record etc).

and ASAP serve buyer a notice of recission, that you put an end to the contract - and return the amount via cheque by this legal notice.

Feel free to talk!

JT Rajasuriya, Chennai (Advocate 98410 53790) 20 April 2012

Mr.Vivek,

I don't think you should worry much. The transaction could very well be a real transaction - maybe a little lesser than the market rate.

I would suggest if you can find out the approximate property worth from other sources. If you find that there is a huge difference in the offer, then you can talk about the same to the persons and let reason prevail over them.

But, in case you find that the offer is only a little less than expected value you may as well go ahead with the transaction.

Amit (AVP) 20 April 2012

I am purchasing a residential property which is currently registered in the name of a public limited closely held company. The directors of the company have agreed to sign the Agrement of Sale but want to authorize an ex director of the company to execute a sale deed and present himself at the time of registration. They have issued a board resolution authorizing the ex-director of the company to sign on behalf of the company for this sale. The company name in which property is registered has also undergone a change and the directors have provided a name change certificate from ROC.

I am a bit worried if this authorisation through board resolution is legally valid and do not face the risk of being challenged in the future. I also want to understand if once property is registered in my name, can the existing direcotrs challenge the registraiton on the premise that the board resolution was fabricated.

Can someone advise me on the same.

Thanks