Backing out of a property sale agreement
Querist :
Anonymous
(Querist) 06 April 2019
This query is : Resolved
“The agreement for sale and purchase” was done on Rs. 20 non judicial bond paper and it is NOT registered. The important terms of agreement are as follows. 1. Vendor hereby declares that he/she absolute owner of the said property. 3. The Vendor hereby declare that the said property is free from all encumbrance. 7. Vendor hereby agreed to execute the sale deed in favour of the purchasers or his/her nominee or nominees after receiving the total sale consideration 8. That the “PURCHASER” shall pay the balance consideration amount to the “VENDOR”, on or before 25th April, 2019. There is also the undermentioned clause in the said agreement: 9. That if the VENDORS fail to honour this “AGREEMENT”, they shall be liable to refund within (7) days from such date all payment(s)/ amount(s) received by the Vendor/s from the Purchaser/s on account of sale of the “PROPERTY” along with a sum of Rs.50,000/- in total as damages. The purchaser/s shall be at liberty to recover the paid earnest/part consideration amount from the vendor/s with interest @18% per annum if the earnest/part consideration amount has not been refunded to the Purchaser/s by the Vendor/s within seven (7) days from such date. 10. That this contract shall be specifically enforceable under the Specific Reliefs Act, 1963. 11. It is hereby agreed that time is the essence of the contract. Now that I have a buyer to buy the property for 15% more price. Can I sell the property without any further information to the previously agreed person and and pay back his money with damages, whenever he asks? If I inform him now, I suspect he may create problems. Kindly give suitable advice.
kavksatyanarayana
(Expert) 06 April 2019
Dear anonymous queriest, why anonymous? In which state/District the property situated? When did the vendor sign on the unregistered sale agreement? In most of States the Sale agreement shall be compulsorily register-able document. consult a local lawyer.
Dr J C Vashista
(Expert) 07 April 2019
It is not compulsory to get the document of "Agreement to Sell" registered under the provision of Section 17 (2) (v) of the Registration Act, 1908.
Dr J C Vashista
(Expert) 07 April 2019
Show the document to a local prudent lawyer for better appreciation, guidance and proceeding.
Dr J C Vashista
(Expert) 07 April 2019
Show the document to a local prudent lawyer for better appreciation, guidance and proceeding.
Dr J C Vashista
(Expert) 07 April 2019
Why did you prefer to conceal your identity ?
Anonymous author may not be obliged by experts as per rule of this platform.
A. A. JOSE
(Expert) 07 April 2019
In some States like Gujarat, registration of agreement to sell immovable property is mandatory . You may, however, come out with complete facts as have already been sought by experts herein above.
Guest
(Expert) 07 April 2019
If you intend to create problem for the buyer by backing out of the agreed deal, you can also expect problem from his side.
