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Chaitan Janabai   04 February 2019

agricultural land deal: Two part payment

Hi,

My Dad along with his five brothers owns ancestoral land at Village falls in Satara district of Maharashtra.

we have all decided to sell that land unanimously which is 18 acre. one developer/broker approached us and agreed to buy land at discussed price.

But he had a condition, he wish to pay advance of 20% amount of total cost of the deal now and rest after 9 months to while making sale deed.

Now, one of my friend suggested to me to make registered Earnest receipt or Visar Pavati for 20% advance payment by putting clause of complete the whole process of making sale deed not more than 3 or 5 months.

Questions:

1. what is the best way to handle this situation in order to safeguard our interests

2. Is there any max. validity period fixed for Ernest receipt or Visar Pavati.

3. should I follow the suggestion given by my friend.

4. what are the legal implications we should taking into consideration while entering in this deal.


Learning

 5 Replies

Suhail suhail (LAWYER)     04 February 2019

Just execute a registerd Agreement to Sell and in that place all the terms and conditions; Conditional sale, you can mention that if the sale is not complete within 9 months as agreed the earnest money received by you shall forfeit .

 

1 Like

Chaitan Janabai   04 February 2019

Thanks for your prompt reply and advice.

Shall I go forward with registering 20% payment with Earnest Receipt or Visar Pavati by putting all the terms and conditions for doing sell dead at fixed date after 9 months as suggested by you.

Thanks in advance.

Suhail suhail (LAWYER)     04 February 2019

Yes but please make sure the deed is registerd with conditions that upon failuer of payment with specific time agreed by you the earnest money will forfiet.

Then also put condition that the title shall not pass to the prospective buyer until whole of the amount is not received within the specific time and untill the documents are regustered after receipt of full agred amounts.

The Posseion shall be handed over only upon registration of sale deeds and full payment of sale amount.

Also put this term;

The prospective buyer shall not claim the forfieted earnest money upon his failuer to pay the full sale amount in the agreed time in any court of law and instead further penlaty of  upto 5%  of the total cost shall be payable by Prsopective buyer to the owner if he failed to pay the amount as per agreed terms.

1 Like

Chaitan Janabai   04 February 2019

Thanks a lot for detailed advice.

I will make sure of all the mentioned points incorporated.

Thanks again

Suhail suhail (LAWYER)     04 February 2019

You are welcome

 

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