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subrato bose   29 July 2020

Sale agreement get cancelled, lawyer asking for money

Hi all,

I need some advice regarding a property deal, the sale agreement was made on 28th February, I had applied for loan but due to Covid situation it got delayed and seller cancelled the agreement. In this situation can I demand any compensation and also the lawyer who made the agreement told me that need to pay the agreement charges as it has to beared by the buyer alone.

Is this true? 

Please provide me your valuable suggestions.



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 5 Replies

Dr J C Vashista (Advocate)     29 July 2020

Originally posted by : subrato bose
Hi all,

I need some advice regarding a property deal, the sale agreement was made on 28th February, I had applied for loan but due to Covid situation it got delayed and seller cancelled the agreement. In this situation can I demand any compensation and also the lawyer who made the agreement told me that need to pay the agreement charges as it has to beared by the buyer alone.

Is this true? 

Please provide me your valuable suggestions.

Payment of legal charges / fees of lawyer has to be paid by either of the parties to the transaction as agreed.

Generally the vendee (buyer) has to incur all expenses qua the transaction (including fees of lawyer), which may vary as per terms and conditions of agreement to sell.

Shilesh Patel (Advocate)     29 July 2020

The buyer pays the expenses of an agreement most of the time but look into the agreement, and ask your lawyer to settle the expenses or negotiate. Fees of the lawyer are must to be paid, and any compensation depend on your agreement's terms and conditions.

G.L.N. Prasad (Retired employee.)     29 July 2020

Who is responsible for the cancellation of the agreement?

What are the conditions imposed on expenses incurred for the cancellation of such an agreement ?

Whoever cancels the agreement contrary to laid down conditions/clauses as stated in the agreement must pay the actual costs incurred by the other party.

If there is a due date or time frame allowing the seller to wait for purchase consideration, and if the purchase consideration was not paid in full on that date, then the seller may go back for cancellation.

Contact a local advocate.

subrato bose   29 July 2020

Thanks alot for your reply sir,

I understand any cost while buying a property be it stamp duty , registration charges and lawyer fees has to be paid by the buyer but since i have not cancelled the agreement the seller did so are not we both liable to pay to the lawyer? And also can't i ask for any compensation from the seller as he cancelled the agreement not me? 

P. Venu (Advocate)     29 July 2020

In the absence of amicable settlement, there cannot be any unilateral settling of the matter. A Court of Law alone can decide the respective liabilities. Apparently, the issues are too trivial to be agitated in a Court of Law.

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