Sale of land agreement
NATHI
(Querist) 26 October 2013
This query is : Resolved
I have a residencial property in karnataka.i want to sell the property .the other interested party want to make a token amount and wanted to enter into an agreement,by which they will pay the remaining amount within three months and acquire my property.My request for advice is, if the other party is not settling the remaining amount within the specified months, can i cancel the agreement by returning the amount at the expiry of the set limit time and sell the property to other buyer.any legal issues are there in selling the property after that time ?is there chance of dragging of the issue by the other party? How to avoid such things ?
Anirudh
(Expert) 26 October 2013
You are selling a immovable property involving lakhs of hard earned money. Why don't you approach a local lawyer and then do the agreement to sell, by putting necessary safeguard clauses to protect your interests.
By trying to say some money, which you have to give to a lawyer, you will land up in problem later, which may prove to be highly costly to you.
Better approach a local lawyer and get the needful done.
NATHI
(Querist) 26 October 2013
Sure. I. Will consult a lawyer.but my question is whether by putting suitable clauses as per lawyer's advice, can i end the agreement after the agreed time limit , in case the other party is not meeting the agreed settlement ?
NATHI
(Querist) 26 October 2013
Or noway i can prevent dragging of the isuue for years ?
Advocate M.Bhadra
(Expert) 26 October 2013
An Agreement for Sale if it is executed you must very careful on your part and everything go in writing, as per the agreement three month time is available for the buyer until that you did not have no other option ( you did not given refund clause details) but after over of three months if the buyer not come forward as per the term of the agreement , you have opportunity to cancel the agreement by way sending a Legal Notice terminating the agreement along with demand draft of the advance amount paid to you or otherwise the agreement is legally valid for three years even though it not registered he can file a suit for Specific Performance of Contract against you in civil court, but he as to establish that he is ready and willing to purchase the property by paying the remaining sale consideration, but it is lengthy process of laws.
Anirudh
(Expert) 26 October 2013
Dear Mr. Nathi,
Unless the agreements wherever time is given to the buyer to make the payment is always risky. One cannot say with certainty that the matter will not end up in court. This will be so even if you put all the clauses which will safeguard your interests.
Therefore, either wait for 3 months without making any agreement with the current interested party, and without taking any token amount. Look for a ready buyer instead of one who is asking time. You tell them orally that you will wait for 3 months but in the meanwhile if anybody else comes I will sell it to them. In this way, you will be playing safe - one you have not committed anything in writing to the present interested party - second you have all the options in the world to sell to anybody whoever comes with proposal to buy immediately - thirdly you can always demand the prevailing price in case the price goes up by 3 months - fourthly, if the present party is really interested, then he will somehow quicken his process and bring the money at the earliest.
Anirudh
(Expert) 26 October 2013
Dear Mr. Nathi,
Please note that any agreement signed by you (whether registered or not) would be binding.
In case, after entering into an agreement to sell, and after getting some consideration towards the said agreement, and if you give possession of the property to the buyer then the said Agreement to Sell is compulsorily registrable. If the Agreement which is required to be compulsorily registered is not so registered, then, no party will be able to approach the Court on the basis of the said unregistered Agreement, to force the other party to perform the contract.
HOWEVER, please note, in case you try to evict the buyer (to whom you have already given the possession) in case he does not make the balance payment and delays the registration, he will be able to defend his possession on the basis of the unregistered Agreement to Sell.
prabhakar singh
(Expert) 26 October 2013
I agree with the last view of Mr.Anirudh.
Devajyoti Barman
(Expert) 26 October 2013
If you mention particular date within which the sale is to be completed and make it clear that ' time is the essence of the contract' , then surely if the buyer fails to complete the sale within the stipulated time you can cancel the agreement by returning the earnest money unless the same is stipulated to be forfeited.
Devajyoti Barman
(Expert) 26 October 2013
Rajkumarji
Well a clause of Conciliation can be incorporated whereby the parties may try resolve their their disputes first among themselves before taking recourse of law.
The legal remedy must be there but the parties may just first try to go for resolution at personal level.
R.K Nanda
(Expert) 26 October 2013
no more to add.
malipeddi jaggarao
(Expert) 27 October 2013
I agree with the views of expert Mr.Anirudh. Additionally if you are interested in the deal and willing to wait for three months as asked by the prospective buyer, you can execute a promissory note in favour of the buyer for the amount he is willing to give as advance.
V R SHROFF
(Expert) 27 October 2013
I agree with the views of expert Shri Barman
"Time be essential element of Agr.
NATHI
(Querist) 27 October 2013
Thank you all for your valuable advice and guidance.
