Agreement for sale
Soumi
(Querist) 10 April 2013
This query is : Resolved
Hi All,
My mother has made a registered agreement for sale of my late father's house. Apart from my mother, my father is survived by two daughters including me(younger one is unmarried). In the agreement for sale we have mentioned that if my mother(vendor) does not receive the full amount by a certain date from purchaser or does not receive payments(part payment amount) by a certain date, the agreement would be automatically cancelled.
In case the purchaser fails to make the first installment of payment by the agreed date, what is the procedure by which my mother can cancel the agreement for sale and look for a new buyer of the house ?
ajay sethi
(Expert) 10 April 2013
ason date there is no default . asper the terms mentioned by you in case he fails to make payment on due date agreement stands cancelled .
Soumi
(Querist) 10 April 2013
Thanks a lot for your response Mr. Sethi. I would further like to know what process does my mother need to follow if incase the buyer fail to make the part payment as per the agreement for sale ? Do we need to send any formal notice or anything or no action is needed from my mother's(vendor's) side ?
ajay sethi
(Expert) 10 April 2013
corss the bridge when you come to it . till date buyer has not defaulted .
if at all he defaults under the clauses mentioned by you agreement stands automatically cancelled .
you can issued notice to buyer that on account of default in making payment by due date agreement stands cancelled
Devajyoti Barman
(Expert) 10 April 2013
After the due date send the buyer a notice of cancellation and then go for other buyer.
V R SHROFF
(Expert) 10 April 2013
not so easy!
It is Registered Agreement.
To file suit for specific performance,in failure, cancellation thru court order.
prabhakar singh
(Expert) 10 April 2013
Yes!not so easy!
Agreement is registered one and it is not disclosed if time made essence of contract?
Soumi
(Querist) 11 April 2013
The agreement for sale was notorized. Is it same as "registered" agreement for sale ? In case not, what is the difference between notorized and registered agreement for sale ?
V R SHROFF
(Expert) 11 April 2013
The agreement for sale was notorized.
It was not "registered" agreement for sale
Purchaser get right in personama; vendor, not in rem, not over the whole world. that is the difference between notorized and registered agreement for sale.
Under the circumstances, you can cancel the Agr by notice. It is Easy.
If agr nor registered, do not submit it is registered. U waste our time.
Soumi
(Querist) 11 April 2013
Thanks to all the legal experts who answered to my query! This site is very useful for ordinary people like me who are not so familiar with the various legal procedures including the terminologies.
B K Raghavendra Rao
(Expert) 11 April 2013
Basically, your mother has no right to enter into an agreement of sale of property that was in the name of your late father. The property has to be transferred to the name of you two sisters and your mother jointly and ownership has to change accordingly by appropriate registrable documents like succession certificate issued by a competent civil court. Only then all of you become entitled to sell the property.
Since the agreement is entered into by incompetent persons, there is validity for the sale agreement.
However, if you had acquired ownership legally by appropriate document, then you need to issue a notice to the purchaser about violation of terms of sale agreement and cancel the agreement.
Soumi
(Querist) 11 April 2013
Dear Mr. Rao, what is your suggestion in the current scenario ?
Anirudh
(Expert) 11 April 2013
Dear Soumi,
The Agreement to Sell is not required to be registered, so long as the possession of the property is not handed over to the buyer. In your case, I believe, that possession of the property has not been handed over to the buyer.
If your mother does not receive the payment (first installment according to you) by the date fixed in the Agreement to Sell, please give a legal notice indicating that time is essence of the Agreement to Sell, that the buyer has not made the payment of the first installment by the appointed date, therefore the buyer is called upon to make the payment by .....(give one week's time), the agreement to sell would stand automatically cancelled and the vendor would be free to enter into agreement with third parties.
Please contact a local lawyer, get the legal notice prepared and sent under Registered Post/Speed Post. Track the delivery and keep a print out of the delivery status.
prabhakar singh
(Expert) 11 April 2013
How does it come so that
"The agreement for sale was notarized.
It was not "registered" agreement for sale"
When she opens with sentence"My mother has made a registered agreement for sale of my late father's house. "
And as per law a property can never remain without owner even for a fraction of second
then forth after the death of your father,you, your sister,and your mother became owner jointly with share of 1/3rd each succession or heirship certificate issued or not,no matter,right to
transfer started forthwith.
Soumi
(Querist) 11 April 2013
Thanks to all for their responses. Now the buyer is asking for the uncancelled xerox of the original sale deed of the house(which is in my father's name). He says that he requires this document for getting a CERTIFIED TRUE COPY OF THE ORIGINAL DEED from registration office.
Since many people asked me not to give any uncancelled document, I refused. However I gave him a cancelled xerox copy of the document, but without the back side printed, where the registration stamps are made. The buyer is now asking for a cancelled xerox copy of the sale deed with both the sides printed. He says that he would use it to get a CERTIFIED TRUE COPY OF THE ORIGINAL DEED from registration office. He requires the certified true copy to get OVERDRAFT facility from bank.
1. Is it safe to hand him a cancelled xerox copy of the original sale deed(with both sides) ?
2. In case he is able to get a CERTIFIED TRUE COPY OF THE ORIGINAL DEED from registration office, can he misuse the document ?
Kindly advise.
Raj Kumar Makkad
(Expert) 11 April 2013
There is no harm in providing the zerox of such uncancelled document. You should help such person and it cannot be misused against you.
prabhakar singh
(Expert) 11 April 2013
It is buyer's duty to enquire all that and you do need to cooperate.
Soumi
(Querist) 11 April 2013
I am trying to cooperate. However, I read somewhere that a CERTIFIED TRUE COPY OF SALE DEED is equivalent to SALE DEED. That is why I want to know if he can misuse THE CERTIFIED COPY OF SALE DEED before transfer of property.
I tried to tell him that I will cooperate in any way he wants, even when his banker wants to investigate and all. But he wants only THE CERTIFIED COPY OF SALE DEED before paying my mother any money and before the transfer of property in his name.
Raj Kumar Makkad
(Expert) 11 April 2013
If the seller suppresses the material facts from the buyer then the possibility of the complications in the deal may not be ruled out.
Raj Kumar Makkad
(Expert) 11 April 2013
There is no possibility of misuse if the buyer intends to go through the copies of the previous title deeds.
B K Raghavendra Rao
(Expert) 11 April 2013
Obtain succession certificate from the civil court. Then you are entitled to enter into sale agreement, sale deed, lease deed, borrow loan on the property etc.
Soumi
(Querist) 11 April 2013
The seller had shown the buyer all the original documents before the deal was made. Even the agreement for sale states that "The purchaser has also verified the previous sale deed and other documents relating to the building and the vendor has also provided a xerox copy of the earlier sale deed to the purchaser. "
Soumi
(Querist) 11 April 2013
I fail to understand why the buyer wants to get CERTIFIED TRUE COPY OF THE CURRENT SALE DEED before completing the registration in his name and paying the vendor any money. The vendor has already provided him xerox copy of the sale deed.
Raj Kumar Makkad
(Expert) 11 April 2013
You may directly ask this question from the buyer instead of experts. We can say only that even if he obtains the certified copy of previous registered sale-dded, no misuse can be done by him.
Devajyoti Barman
(Expert) 11 April 2013
The buyer is expected to see the original sale deed. Without seeing it no prudent person would buy a property.
ajay sethi
(Expert) 11 April 2013
the querist has mentioned inspection of origanals has been given but the buyer wants certified copy of sale deed to obtain loan from the bank .
you can furnish notarised copy of said agreement to buyer
Anirudh
(Expert) 15 April 2013
Please do not give certified true copy or uncancelled xerox copy of the original documents in your possession.
Soumi
(Querist) 15 April 2013
In case I give the buyer cancelled xerox copy of document, he says he can get the certified true copy of it from registration office. Is he correct ? And in what way can he misuse certified true copy of sale deed ?
Anirudh
(Expert) 15 April 2013
I am very sorry. Still you are in the fringes consulting one or the other, instead of engaging a lawyer and doing things through him.
Raj Kumar Makkad
(Expert) 15 April 2013
It is true that the proposed buyer can get the certified copy of the document if you provide him the cancelled zerox copy. Nothing undue benefit can be got derived by him.
Soumi
(Querist) 06 May 2013
As I had suspected, the buyer refused to pay my mother any money till he gets the documents. As mentioned in the agreement that he would pay us the first installment by 25th April, we called him on 25th April as well as on 27th April. But the buyer plainly said that he will not pay the first installment(40%) without getting the documents. My broker also tried to convince him to pay but he refused. Then my broker told him to meet us within a week's time to which he agreed. However at the close of the week, he gave medical reason and said that he will not be able to meet for next few days.
Now we contacted our lawyer and he said that since it was not a registered agreement, this cannot be challenged in court and has not value. Therefore, he suggested us to send a notice in registered post to the buyer's place.
My question :
1. In case the buyer does not respond back to us within the stipulated time mentioned in the notice, can my mother start the negotiation with a new customer ?
2. In case the address of the buyer is found to be incorrect and the registered notice comes back to us, what process my mother should follow ? My lawyer says that my mother can start negotiation with a new customer instead of waiting any more for any response from the existing buyer. However, I would like to know the opinion.
ajay sethi
(Expert) 06 May 2013
yes she can start negotiating with new buyer
2) you have to go as per address mentioned in the agreement for service of notices . if buyer has furnished wrong address it is his funeral . you have sought to serve him at the address mentioned in agreement
