Hi, I am in the process of selling a property and got into any agreement (rs 200 stamp) with a buyer "A".
Agreement was that i have recived an advance amount (10Lakh) and that the property should be registered within 3 months.There is also a clause that if the peroprty is not registerd by 3 months, the seller is entitled to deduct 5% and return the balace amount.
"If the Purchaser fails to perform his part of Obligations to get registered the schedule property within the stipulated period by paying the balance sale consideration, the Vendor is entitled a sum of 5% of advance amount out of total advance amount Rs.10,00,000/- (Rupees Ten Lakhs only) and return the balance amount to the Purchaser."
I have 2 questions.
1. Its been 4 months and the buyer has stopped responding to my request register the property or to return the agreement and collect the remaining amount. Can i sell the property to another buyer "B". I am ready to return the amount as per agreement to "A" whenever he decides to return the originals of the agreement.
2. On request from the buyer, 5L out of the 10 Lakh was taken in cash and the same was recorded in the agreement. I have been informed that from FY 2017, cash transactions more that 20K is illegal. Can you comment on the legality of this agreement. If i cancel this agreement shoudl i still pay any penality for being part of the cash transaction?
thanks in advance.
