Cancellation of the Registered Agreement of Sale

You can file a suit before the concerned Court and can claim your rights as per the agreement.

I am almost in same boat. But in my case seller's bank has given him all the docs and he has submitted all the documents to my bank. My bank is ready with cheque.

However property prices have gone up + I have given significant cash at the time of agreement which is unaccounted.

More than 50% amount is yet to be released to seller by my bank. However now seller is asking for:

1. Remaining money and is ready for executing sale deed. But don't want to give possesion till July. (He is ready to mention it in sale deed that possession will be given by 31st July 2011).

2. And want some more money as market price has gone up.

My banker says don't entertain him at all (as original docs are in their custody now). Ask him to give possession and pay remaining amount per agreement (no need to pay any extra amount).

Questions:

1. Can I send him letter to execute sale deed per terms of agreement and keep quiet? (That way I won't have to go thru hassle of going to court. I can wait for couple of months if he doesn't turn up. More than 50% amount is yet to be released by my bank and my bank has all documents for property so he can't sell it to anybody else. Only possession will get delayed.). Am I missing something here?

2. Can seller cancel agreement to sale at this stage in the game (he has already received token + his banks dues are cleared too).  But that would mean - huge loss for me (as black money, registration charges, soc transfer fee, adv fee etc goes beyond 10L).

3. I have asked couple of people and they say don't get in to sale deed / pay remaining amount till he gives possession. it might be tough to get possession later and he may demand more money again.

Dear Pune Seeking Advice,

My problem got resolved, we got the possession of the flat the day we gave the full and final payment to the Seller. Before hand, we send the Seller a mail stating the details as per the agreement and told him that legal action would e taken against him if he does not honour the agreement for sale. This mail was send because he was not taking us seriously on the possession clause and handing over the documents Our case was a bit simpler as we had gone for a full white payment. Also in our sale deed we had mentioned that the seller should hand over the original documents in 15 days after the Sale Deed Registration and also that he should hand over the peaceful possession of the flat immediately after he receives the full and final payment.

Have you registered the Sales Deed? Please let us know!!!

Though I am not an expert in the area but as per your Registered Sales deed I assume it is mentioned that the peaceful possession should be given as soon as the final payment is done. So you can always ask him to do so. Also let him know that if he wants it mentioned in the Sales agreement that the possession would be acquired in July no bank will sanction/ disburse the loan amount immediately. (We had got this verified from our lawyer too who was of the opinion that if the immediate possession is not written in the sales deed then the bank would not disburse the loan amount).

So the question of adding the July possession clause in the sale deed does not arise. Also since your bank has all the original documents you are on the safe side as he cannot do anything. He is just taking advantage of your liniency so please do not worry and be very firm on your stand. Please do not entertain him in paying more money because its your hard earned money and he was well aware at what price he was selling the flat earlier. The seller does not seem to be a man of Morals.

And as per my knowledge and experience goes its very tough to get the possession of the flat if you do not get it immediately after you pay the full and final payment.

I know it is very tough and stressful as I have been in the same condition a few days back but hold on and fight...

All the best....

Thanks Dhanlakshmi for your quick response.. (Much relief, you can understand my situation better than anybody else on this forum. As you have gone thru similar pain recently)

I already have registered "agreement to sale" in place which says he will give me peaceful possession on final payment. After agreement, my bank paid his banker. Now he has submitted all the orginal docs to my bank. Now possession + Sale deed and remaining payment (which is significant amount) is pending.

He has been doing lot of drama because I am currently abroad and I had paid some black money (which was hard earned tax paid money for me) with agreement.

He has been threatening to cancel the deal because I am on the fence from timeline perspectives (2 months clause and my bank gave us first payment just on completion 2 months. Then he did not accept that cheque for couple of days saying he is out of town).

I had to entertain him a bit before he submitted docs to my bank. But now my banker opened my eyes - have asked to take possession before sale deed and further payment. Otherwise I would have been screwed very badly.

Anybody else, thoughts? - Anything I should be careful about? or action this person can take to cancel the deal at this stage? Or anything I should be doing proactively to be on safer side? (One of my lawer has suggested to send him telegram saying - "Agreed amount is ready. Please execute sale deed per terms of agreement."). Any issues with that?

Hi,

I am just reading out my thoughts loudly on your situation here. I feel that he would not go in for a cancellation of the deed as his original papers are with your bank. I am sure you have a cancellation clause in your agreement(mine was that in case the seller wants to cancel the agreement he would have to pay the buyer 24% of the amout the buyer has paid the seller till date which also includes the registration + stamp duty+ brokerage charges+society transfer charges etc).

Also I agree with your lawyer and I think you should proactively send a mail to your Seller stating that he should go ahead with the procedure as per the sales deed and hand you over the possession and that you are ready with the full and final payment. The mail/ notice should be very crisp and clear stating the dates as per the agreement and should be according to the legal terms. Please let him know that legal action would be taken against him if he does not abide by the sales deed. This will make sure for your case in future that you were ready to pay him the remaining amount and that you want to abide by the sales deed. Its kinda building up your case. Please do not have any loose ends on your end when sending the mail. Also send a hardcopy of the mail to him on his residence/mailing address in case he says that he does not check his mail regularly(he may give u an excuse to anything).

All the very best....