I signed an MOU to sell a flat last year in January. The MOU was valid first for 60days and then for extended for a further 60 days. Expiry date was 1 june 2011. I was supposed to get the NOC from society for buyer to obtain loan from a bank when the bank demands for the NOC. My society refused to give me NOC, as the secretary was interested in buying the flat himself. I told the buyer that the NOC is not possible due to non cooperation of society. We never received a letter of demand from the buyer's bank for an NOC from society and later found out that he had not even applied for the loan.
The expiry date also arrived and the buyer now says that there is a clause which says " Both the buyer and seller will execute their duties and cannot cancel the MOU."
Another problem that I encountered was that the buyer wanted to pay half of the money in black which we refused. we wanted full cheque payment. A few days ago, that is after one year of expiration of the contract....he has sent letters to everyone in the society thru speedpost that his contract is still valid and no one should deal with the said property. The letter was from himself & not thru a lawyer.
I do know the dates when he had got the stamp papers for registering the saledeed (at half of the purchase value) and when he surrendered them back into the treasury.
My question is - can he enforce the MOU thru court? Can prevent me from selling the flat? Other than his right to take his token money does he have any other right? In the MOU it was mentioned that if he is inable to secure a bank loan then seller will return token amount ( which we have agreed) but he doesnt want to pay the money and nor let the contract cancel. The price of the flat has gone up by 15% and I have other buyers.
