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naveen devara   26 April 2020

cancellation of unregistered bond sale agreement

Dear Sir,
I'm the seller, I've made agreement with buyer for my house sale. As per agreement,the registration has to be completed by 26april 2020 I.e. 60days from agreement signed date. However as due to COVID lockdown registration was unable to complete. And also as per agreement it was mentioned that balance amount has to be paid which was also not paid by the buyer to seller within 60days. So now can the seller cancel the agreement as he was unable to continue with home loan emi payment during lockdown. There is no clauses mentioned in agreement. Only mentioned as to be registered within 60days and balance amount to be paid.


Learning

 7 Replies

Dr J C Vashista (Advocate)     27 April 2020

You will have to issue a notice qua termination of subject contract (agreement to sell) for non-performance of contractual obligation on the part of vendee (purchaser).

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     27 April 2020

You can very well rink up the prospective Buyer, with whom you entered into an agreement and discuss the matter. After all, this lockdown was not anticipated when the agreement was drawn and signed. I can say it is like Force Majeure (Act of God), both of you can very well come together over the phone (never to venture out till lockdown is lifted) and can have a new schedule. 

 

Moreover, from what you queried, the agreement appears to be unregistered and I do not know whether proper stamp duty is paid or just written on white paper. 

P. Venu (Advocate)     27 April 2020

Have you contacted the buyer - if so, what is his response?

Sinjari Bandyopadhyaya(Banerje (Lawyer 9830019661 Kolkata WB)     28 April 2020

Although in due compliance of the terms, the Sale Agreement has not been registered during the stipulated period of 60 days from the date of execution of that unregistered Agreement,if the Seller tries to cancel the Sale Agreement on that groud,then that conduct of the seller  is liable to be challenged on the ground of Clause force majure because it is necessary to exclude the Government directed period of lock down( to maintain social distancing) while calculating the 60 days time period.After withdrawal of lock down,it is necessary on your part to give notice to that buyer in this regard,specifying the date for completion of the performance of Sale Agreement.Please take note that I am giving this opinion without perusing your document so for detailed opinion,it is necessary to see the document as a whole....Sinjari Banerjee,Advocate from Kolkata,9830019661 ,9830011829.

naveen devara   29 April 2020

Sir the buyer is not ready to cancel the agreement as he quotes that it was only delayed due to lockdown which was not his fault. I agree but due to this I have to pay the EMIs for my home loan till the extended lockdown eriod which will cost high to me. So I need to know how can I terminate the agreement. Also I I requested the buyer to pay the haf interest on emi because it was also not my fault.

Sinjari Bandyopadhyaya(Banerje (Lawyer 9830019661 Kolkata WB)     29 April 2020

 Through EMAIL or message,you can ask the buyer for online transfer of the balance amount to your bank amount immediately and also notify to do the needful for E REGISTRATION OF THE Sale Deed.  

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     30 April 2020

I agree, it's a problem. But do you have a ready buyer to purchase with cash immediately right now even during lockdown and get the registration done? If so your contention shall be okay. Then only you can ask the buyer with whom you had agreement to understand your problem and co-operate to cancel the agreement. Otherwise, your contension is not reasonable. Law is not mere documents but the circumstances leading to the documents, what's written therein and curmustances that followed subsequently too. This is a clear case of force majeure.
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