Sale agreement
charles bricklayer
(Querist) 22 June 2012
This query is : Resolved
recently i entered into an sale agreement of a residential property with a purchaser.he has paid me 25% of the agreed amount. it was agreed by both of us and is clearly stated in the sale agreement that the purchaser would complete the transaction and get the property registered by him within 3 months from the date of agreement. now that time period is over. whenever i contact him, he says that he can't raise the remaining amount now as he is having some problems and claims that irrespective of the time period agreed upon and clearly mentioned in the agreement,the agreement is valid for three years. hense, i will have to wait till that period.it is an unregisterd sale agreement. are his claims legally valid and what should i do now?
M.Sheik Mohammed Ali
(Expert) 22 June 2012
if not unregistered agreement also valid, but not primary, but you can go for specific performance act for registered the property.
Adv.R.P.Chugh
(Expert) 22 June 2012
Dear Querist,
Since specific time was given in the agreement for completion of sale formalities - time was of the essence of the contract - in simpler words - now you have the right to rescind/cancel the contract - and forfeit a reasonable part of the earnest or amount already extended as damages.
As regards the valdity of agreement of sale till 3 years - in an earlier clause it is mentioned categorically that he had to perform his side of the promise within 3 months, now which clause supercedes the other - would depend on overall construction of the contract. On the first blush in my view it won't, but still a detailed examination is required.
Feel free to talk !
sanjeev murthy desai
(Expert) 22 June 2012
If such sale agreement does not have any default clause or forfeit clause then you should have to refund the money to the purchaser. In my view subject sale agreement has time is essence of contract and such period is lapsed. Hence send a termination letter/notice and ask him to come collect the advanced amount.
3 years time is only for file a case when there is no time is essence of contract.
Sankaranarayanan
(Expert) 22 June 2012
well said by mr sanjeev murtyhy, yes exactly better to send letter along with the amount and mentioned the agreement is cancelled
N.K.Assumi
(Expert) 22 June 2012
Agreement to sell does not require registration when possession is not delivered at the time of execution of agreement to sell.Better sell it to a good purchaser.
