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Uday Kumar (Software)     14 August 2016

Property sale agreement validity(bangalore)

Hi,

Sometime last year (12-02-2015) we have gone for sale agreement(for property in Bangalore) with one buyer who paid 8 Lakhs as advance for the property and buyer agreed to go for registration procedure within 90 days from the date of sale agreement by paying remaning balance amount.

                        The buyer failed to register the property within 90 days as per the agreement and on MAY 21st 2015, buyer has paid 8 lakhs more and extended the agreement upto JULY 20th 2015 .This extension of agreement was handwritten on back of same old agreement and new clause "If both parties come to conclusion and cancel agreement ,50% of the advance amount would be refunded by the rejected persion" was added and both parties singed on it.

                     Now its been more than one year, buyer has not paid remaining amount to us and has not gone for registration procedures. Everytime we call buyer, he will give new dates and  will assure that registration will be completed within that date.

                      Now we want to sell the proeprty to new buyer and we agreed to return complete 16 lakhs advance amount to old buyer after selling the property. But Old buyer is insisting that we cannot sell the property without his approval and he mentioned that the SALE agreement we had with him is valid for 3 years. Now i have following queries

 

Queries:

    1. Is the SALE agreement really valid for 3 years?

 

    2.  Do we have right to ask buyer to pay interest ( planing to ask 1 Repuee interest rate) for remaining amount for this one    year before going for agreement?

 

    3. Do i need to inform my old buyer before sellin property?Do i need to involve old buyer for any procedures when selling property to new buyer?

 

Appreciate your time and effort on addressing my queries.

 

Thanks.

 

 

  

 

 

 



Learning

 4 Replies

adv.bharat @ PUNE (Lawyer)     14 August 2016

1) No it depend upon the TOR mentioned in agreement.

2) Rate of interest also depende up on the agreement condition.

3) Without his consent u can't sell that property.

If u like my suggesation then give THANK on my profile.

saravanan s (legal advisor)     14 August 2016

The agreement to sell is only valid July 20 2015.you send the buyer a notice through registered post with acknowledgement that since he had breached the condition regarding buying the property as per the terms mentioned in the agreement he is bound to lose 50% of whatever advance he had paid.

Kumar Doab (FIN)     14 August 2016

You may approach a very able counsel specializing in revenue/property/civil matters with copies of the agreement and endorsments and proceed further under expert advise of your counsel,after having understood the merits and options.

The buyer seems to have made his mind to oppose sale by you to another party and refund by you.

 

P. Venu (Advocate)     14 August 2016

There appears to be no constraint in selling another buyer. However, you need to return the advance you have recivedin full.


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