Additional charges after execution of sale agreement

Charyulu KVN (Querist) 28 September 2020 This query is : Resolved
In the month of July I have executed a sale agreement for x value with a time period of 90 days. In the first week of Telangana Govt. banned registrations due to implementation of new revenue act. They have also issued a GO to prohibit registration of all the panchayath approved properties. While executing a sale agreement I have clearly told that my property is panchayath approved accordingly agreed the price. Now if I want to go with DTCP/Municipal approval, it would cost me nearly 9.00 lacs. But buyer is telling that I have to bear this cost and get the property registered in his name. With proper approvals my property value is X+ here, hence I am arguing that if I go with approval, buyer has to bear approval charges else I have to revise the agreed pricing for my property. For both he is not willing, neither he is not ready to cancel the sale agreement. Kindly suggest best possible action to me here to move ahead.

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A seller executed a sale agreement for a panchayat-approved property at a reduced price due to a 90-day registration window. However, government bans on registrations and new revenue acts have introduced a significant additional cost for DTCP/Municipal approval. The seller argues the buyer should bear this cost or the price should be revised, while the buyer insists the seller must cover it. Both parties are unwilling to cancel the agreement, leaving the seller seeking advice on how to proceed.

Advocate Bhartesh goyal (Expert) 28 September 2020
A agreement for sale of property has been executed between you and buyer and both of you are bound and abide by terms and conditions Incorporated in agreement.Now you can not take other stand that besides the agreement some conditions were also agreed orraly between you and buyer.you can not impose other conditions on buyer which are not mentioned in agreement.In case you fails to perform your part of agreement buyer may file a suit for specific performance of agreement against you.

Charyulu KVN (Querist) 28 September 2020
Thanks for swift response while we entered into sale agreement this restriction from govt was not there hence I have agreed for less pricing. Also this approval is a time consuming process and no one knows how long it wd take. Sale agreement says within 90 days they should register right?? Ince that period is over does it not automatically lapse?

Advocate Bhartesh goyal (Expert) 28 September 2020
Yes,if buyer insists to you to perform contract or files suit for specific agreement of agreement against you,may take objection that term 90 days period from execution of agreement was settled to perform contract which has been expired and in this period buyer did not perform his part of contract ." Time is essence of contract " so due to non performance of contract by buyer agreement is automatically terminated.

Charyulu KVN (Querist) 28 September 2020
Thank you so much. Your second reply boosted my morale. But buyer says it is the responsibility of seller to finish registration as per time frame in the agreement? To my knowledge it is responsibility of buyer to finish registration. He says he is ready but he couldn't due to this additional approval and ban of registrations by Govt. I want to sell my property due to financial need. If I go for this additional approval not only impact additional exps to me but also takes so much of time. I say either you register without this approval or cancel sale deal.

Rajendra K Goyal (Expert) 28 September 2020
Whether the purchaser has fixed any date for registration and informed about the same to seller?

Whether stamp papers necessary for the deal were purchased by the purchaser of the property before this date / within 90 days?

Whether the purchaser presented himself for registration before the Registrar on date fixed and has proof from the Registrar office to the effect?

Charyulu KVN (Querist) 28 September 2020
Nothing as such was initiated. As per sale agreement he has 90 days and was assumed to do it in the last week of sept. Unfortunately govt has banned the registrations from 7thsept till 25th october.

Dr J C Vashista (Expert) 29 September 2020
Terms and conditions of sale transaction are to be settled between vendor (seller) and vendee (buyer) amicably.

Rajendra K Goyal (Expert) 29 September 2020
Though you are on weak footings, if not interested in completing the deal at other party terms, oppose his claim on the basis that the time as per agreement has ended.

P. Venu (Expert) 29 September 2020
Apart from the action of the Government in stopping registration, I am completely at a loss to understand, of course, with my limited knowledge as to the relevance and context of Panchayat/DTCP/Municipal approval and the extra approval in the latter cases.

Rajendra K Goyal (Expert) 30 September 2020
Mostly permission / no objection certificate may be asked by registration authority from local authorities to ensure that there is no dues / taxes pending on the property / whether property is properly constructed / property not situated in area which is for other purpose as per development plan etc.etc.

Charyulu KVN (Querist) 30 September 2020
Permission from local authorities why do we need to produce, when we have latest tax paid receipts on hand? If property not constructed as per plan, property tax might not have assessed right? Though we need to support Govt. on revenue, charging LRS that too 14% on open space charges at this crucial time where most people lost their jobs due to Covid19 is not sounding well. In my case also I lost job hence sold my property at less price as I don't have LRS. Now if they stop registration for LRS, who will bear that LRS charges as buyer don't bear?

P. Venu (Expert) 30 September 2020
The above posting only adds to the lack of clarity.

Rajendra K Goyal (Expert) 30 September 2020
If objection is raised by registration authority, same need to be removed.

May seek guidance from district registrar or move to local court for orders.

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