Query about agreement for sale
Akbar Khan
(Querist) 03 March 2012
This query is : Resolved
Hi Friends,i had a deal finalized with a prospective buyer, he paid me 20% of the agreed amount & we made a Registered agreement for sale on 4th January 2012. The agreement had a 45 days forfeiture clause if the remaining 80% amount was not realized, also, me & my wife had to resign from our jobs as we were thinking of moving to another state. Now, even after 2 months, the buyer is just giving us a runaround, calling us at different banks & locations, but never turning up, even though i told him that i will pay him the entire amount he had paid to me. Even his phone was switched off for a month. The property market has appreciated by nearly 12% since then. He has even warned the agents who were there for the deal, not to intervene and when we approached him through a mutual friend, he told her, that he will not cancel the agreement and that he will buy the flat, even if it takes 6 months or a year. Please tell me the Indian judicial system has a law somewhere, through which, i can get some help, as i am feeling helpless after approaching many lawyers and all say that both the parties are needed for a cancellation of the agreement.
Deepak Nair
(Expert) 03 March 2012
Issue a notice calling upon him to pay the remaining amount.
There already is a forfeature clause which is mutually agreed by you and the said prospective buyer. On the basis of that, you can cancel the agreeemnt and forfeit the amount.
If he fails to respond even after receipt of the notice, then inform him vide another letter that the agreement is now cancelled and the amount stands forfeited.
You are free to sell your flat to anybody else as per your wish. Find our another broker. There is noo scarcity for real estate brokers nowadays.
Nadeem Khan
(Expert) 03 March 2012
there is also an important point needs to be disclosed that presently in whose posession the property in question is?
And also, what the clause in agreement says about the posession of property?
adv. rajeev ( rajoo )
(Expert) 03 March 2012
Within three years from the end of 45 days he can file suit against you for specific performance of contract. So it is better to issue notice to purchase the property immediately, otherwise you would sell to any body.
Adv.R.P.Chugh
(Expert) 03 March 2012
Dear Querist,
Time was the essence of the contract - since he has not honoured his obligations within the stipulated time of 45 days - you are legally entitled to rescind/cancel at your end - the contract after due notice to him, you would also be entitled to a reasonable amount out of the earnest already paid as damages for non performance from his side.
Don't give him an extension. After serving him a legal notice - You can file a suit for rescission of contract under Section 27 of the Specific Relief Act, 1963 as the same is voidable on your part.
God Bless you !
PS : It is preposterous to suggest that you should go in for a bilateral cancellation. Rescission is your remedy.
Akbar Khan
(Querist) 03 March 2012
Thank you all for your prompt replies. Just to clarify, the property is under my possession and Bharat, if i file a suit after serving him a legal notice, how long does it take for the honorable courts decision regarding the cancellation? Would truly appreciate any directions or suggestions regarding the same. Thanks again for your suggestion, will consider it for sure.
Shantilal Pandya
(Expert) 03 March 2012
if agreement is time bound and time is up already for the buyer to turn up for saledeed , serve a notice to buyer for forfeiture of the amount advanced by him and also repudiating the agreement for sale,
Akbar Khan
(Querist) 04 March 2012
Good day to you all. Mr. Shantilal Pandya, after sending him legal notices, do i have to file a suit against the buyer or can i go ahead with the sale of the flat? In the past, he has not accepted a notice sent to him via registered AD for a bounced check. What if he does not accept this one either? Please answer my query, as i need to know the legalities and do not want to be at an error.
Akbar Khan
(Querist) 10 March 2012
Hello again Mr. Chugh & Mr. Pandya. I have sent a legal notice to the buyer. However, he sent me a xerox copy of his sanction letter, which is dated 20 days after the agreement date passed and also the amount is 5% lesser than the agreed amount at that time. What i need to know is, is it ok if i sell my flat to a third party after putting in an ad in 2 newspapers, saying that the last buyer had no rights on it (as directed by my lawyer), or do i have to get the agreement cancelled first? Please help me, as we have lost our jobs, our tenures and the issue is just eating up more & more time. Would appreciate a reply on this from all you good people. Thanks again.
Akbar Khan
(Querist) 10 March 2012
Hello again Mr. Chugh & Mr. Pandya. I have sent a legal notice to the buyer. However, he sent me a xerox copy of his sanction letter, which is dated 20 days after the agreement date passed and also the amount is 5% lesser than the agreed amount at that time. What i need to know is, is it ok if i sell my flat to a third party after putting in an ad in 2 newspapers, saying that the last buyer had no rights on it (as directed by my lawyer), or do i have to get the agreement cancelled first? Please help me, as we have lost our jobs, our tenures and the issue is just eating up more & more time. Would appreciate a reply on this from all you good people. Thanks again.
Raj Kumar Makkad
(Expert) 10 March 2012
In the given facts in the subsequent clarification in consonance with your lot of sufferings, it shall be wise to first cancel the agreement first and then move ahead.
