Agreement to sale
Querist :
Anonymous
(Querist) 03 September 2018
This query is : Resolved
Dear Sir,
I need some kind guidance.
We want to sell our house in Kolkata. The interested buyer wants us to intially go for an Agreement to Sale because he needs the same for getting a Home Loan ( The interested buyer is a property developer/promoter).
He is willing to pay 25% payment at the time of the Agreement to Sale and the balance in 60 days.
Though I will keep a clause in the Agreement to Sale which says that in case the buyer does not pay the balance money in 60 days, the agreement of sale gets CANCELLED and the seller will refund the money after retaining 50% as a forfeiture, my question is :
Can the buyer if he fails to make the payment, go for an injunctuion in court to restrain me ( the seller) from selling the house even after he fails to pay the same.
Is there is a risk for me - the seller
How can we remove any risk for me ( the seller)
I hope till the time the full payment is made and the actual sale deed is signed, there are no rights of the buyer - especially if he cannot make the balance payment in 60 days - kindly confirm.
Thanks You.
Kind Regards,
Kishor Mehta
(Expert) 03 September 2018
Once an agreement to sale is executed, the buyer can always approach the Court even if he fails to pay the balance amount within specified period. The safest way is to execute a sale deed only against full payment.
Guest
(Expert) 03 September 2018
The proposal does not seem to be a cause of worry. However, as a precaution sake, after entering in to agreement, you may file a caveat, so that the buyer may not be able to get any injunction without the matter coming in to your notice and without hearing you by the court of law. The buyer/ property developer will be bound to serve a copy of application for injunction, if he files in the court of law.
BAALASUBRAMANNYAMM
(Expert) 04 September 2018
In case, if the buyer fails to pay the balance amount with in the stipulated period of 60 days, you can have right to issue a legal notice, cancelling the Agreement to Sale along with a Demand Draft, for half of the advanced received amount ( after deduction of forfeited amount) unfailingly. That too complete the said process, before the buyer approaches the court.
A. A. JOSE
(Expert) 04 September 2018
Although an element of risk as you have posed in this query will always be there, one should not forget that this method of first entering into an Agreement for Sale on deposit of part sale consideration is the usual practice in such sale. As has been rightly advised by some expert herein, immediately after the stipulated period of 60 days, if the buyer failed to honour his part of the deal by making remaining payment, you are at liberty to treat it as a breach of the agreement and return the amount of money returnable by you to him by demand draft alongwith a written intimation to him in that regard, preferably through an Advocate.
Kumar Doab
(Expert) 04 September 2018
Pls don’t post as AQ and post with your ID and you can get many responses.
Your ID does not mean your email id or phone number etc and don’t post these.
Before attaching any document erase all names, logo, email id, phone number, address etc to maintain confidentiality.
If the need be obtain proper written legal opinion.
Kumar Doab
(Expert) 04 September 2018
You can benefit from the advise of Mr. Kishor Mehta , Mr. BAALASUBRAMANNYAMM, Mr. A.A. Jose.
If possible and suitable to you, find a buyer that agrees to buy against full payment than in parts.
Let your own LOCAL counsel draft the agreement/sale deed to defend your long term interest.
Preferably discuss with elders of the family, competent and experienced well wishers, seasoned community leaders, PIP’s, helpgroups and find a very able LOCAL counsel of unshakable repute and integrity specializing in concerned field of law e.g; revenue/Civil matters as in your case, and well versed with LOCAL applicable rules, precedence, latest judgments etc …. and worth his/her salt, and your counsel can advise you after examining all docs, evidences on record .., and even draft, so as to defend your long term interest.
There are such very able counsels at each location.
Check for such counsels at LOCAL O/o Registrar/Tehsildar/Co-OP Courts/CIVIL courts..HC,SC
