kuttykrishna (PM) 08 February 2010

Property sale agreement

Hi,

I entered into an agreement for selling my house worth 19.5 lakhs on 26th of January 2010. The execution and registration of the sale deed shall be completed within the period of 30 days from this date of agreement. The property belongs to me and self acquired out of my earnings. Now my wife is opposing to sell this property and initially she agreed only half-hearted. I told the purchaser that i am not inclined and pay him the reasonable dues(Bank processing, legal fees, valuation and misc.), but he is insisting me to pay 50K which i cannot afford. The contents as follows:

1. He is a government employee and purchasing the property in his wive's name(she is a matriculation school teacher).

2. We made two agreements, one for bank processing amount of 10.50lakhs and the other one for 19.5lakhs, nine lakhs unofficial and black.

3. Bank completed processing, legal and valuation

4. Within 30 days the sale has to be completed as per the agreement terms.

5. I don't have a copy of both agreements and in addition to bank, he is holding the 19.50 lakhs agreement copy.

I have agreed to pay him the reasonable damages, however, he is claiming 50k and i cannot afford to pay.

Pls. let me know how to deal with this situation.

Regards

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8 Replies

kuttykrishna (PM) 08 February 2010

I took an advance of Rs.1000/- only against the total value of 19.50lakhs.

Regards

R.R. KRISHNAA (Legal Manager) 08 February 2010

Just wait till 26th February 2010 (30 days to get over from the date of agreement). If the buyer has not send any written notice or letter asking you to register the property in his name before 26th February, then immediately after 26 February you can send a notice that 30 days period is over and hence the agreement stands automatically cancelled/expired. Time is the essence of contract and essence of specific performance of contract. You may settle the buyer his legitimate expenditure which he has incurred in processing the matter. Needless to say there are fair chances for the buyer to file a suit for specific performance against you. Better settle the issue by negotiation.

Morally speaking, In this case there is mistake on your part that you now do not want to sell the property, just because your wife is against it. Having agreed to sell the property it is not fair on your part now to refuse to sell the property. Just think of the position of the buyer. He is in a situation of being cheated by you. Note that unless you are fully sure or confident to sell the property with the permission of your wife/children in future please dont enter into agreement for selling property.

kuttykrishna (PM) 08 February 2010

Thanks for the response and in future will not enter into such agreements.

He has expressed his interest not to indulge in forcing me to sell and demanding for compensation. However, he is quoting more than what he has legitimately incurred. If he files a suit against me, how can i tackle this? Do i need to mandatorily send a notice to him stating that the agreement period is over and therefore it stands null and avoid? In case if he files a suit, will i be forced to sell my property (or) pay the legitimate damages whichever he claims?

Please advise.

Regards

kuttykrishna (PM) 08 February 2010

Hi,

In continuation to the above, pls. advise if i need to pay him as demanded.

I am willing to pay the bank charges and miscellaneous, however 50K seems ransom.

Moreover, i have taken only Rs.1000/- and on humanitarian grounds agreed to pay him the legitimate(bank charges, legal, surveyor and misc. expenses). In case if he files a suit, i have no option that defending my stance and let me know how to proceed further.

Regard

R.R. KRISHNAA (Legal Manager) 08 February 2010

It is better to negotiate and settle the matter with the buyer. As said by me earlier, just pay the legitimate expenditure to the buyer. Dont pay for excess demands like 50 K. Issue the cancellation notice on 26th Feb. Let us then decide the further course of action. If he files a suit you can easily defend that the buyer did not take any steps nor was ready and willing to perform the contract within the stipulated period of 30 days. It will be a good defence.

Overall I could suggest only negotiation is the best remedy either before suit or after filing of suit.

kuttykrishna (PM) 08 February 2010

Thanks, I understand that and negotiation is my only resort.

In this case, to be fair, he has done his part and bank has already sanctioned the amount and waiting for the sale deed to effect the payment. If he files a suit against me in between asking me to oblige the contract, i will seek a legal recourse to tackle the situation . My last question is do i need to undly worry that i have to end up losing my property or pay huge compensation as quoted by him even he challenges me in the court of law?

Thanks for all your time.

Regards