Just for a brief overview, I had shortlisted a flat in a cooperative society in Kolkata and was about to do an agreement for sale with the seller, but happen to know that there is already an agreement done by him in the last year date February, 2020 (with a validity window of 6 months) ending on August 2020 and that buyer is not finding enough funds to close this deal and is neither accepting the advance back (given at the time of agreement) from the seller.
The first thing that I wanted to know is that - is the last agreement (with the previous buyer) still valid - given that the validity of the agreement already expired in August 2020? Secondly, shall I go ahead to get a new agreement for sale done with buyer - will it be valid? and, is the buyer holding the rights to file a case on the seller( and the new buyer) if he wants and if so then on what basis? And lastly, what is the role of the cooperative society in such a case?
The last agreement is not enforceable now however buyer may create some trouble on the basis of fraudulent grounds. So the previous agreement has to be cancelled by following legal procedure. Co.operative society can only note the claim of a valid purchaser in their books.
17 May 2021
The buyer is reported to have entered into a sale agreement with the builder, the sale agreement is valid for three years, hence the builder cannot cancel the sale agreement unilaterally. The buyer can drag the builder to the court of law with a suit for specific performance of contract You cannot enter into a sale agreement with the buyer because the buyer has not acquired the title of the property thus in the absence of clear and marketable title to the property the buyer cannot enter into a sale agreement with you for this property. Alternately you can enter into a tripartite agreement with the builder and the buyer which is legally valid and the problem can be solved amicably provided the agreement is worded carefully in accordance with the legal terms.
19 May 2021
Whether there is a covenant / condition for automatic termination of agreement after expiry of 6 months period from the date of its execution ? If so, the agreement stands terminated. Otherwise, you will have to terminate / cancel the agreement before execution of fresh agreement to sell the property, although it is not in vogue. It is better to show the agreement to a local lawyer for proper analyses and professional advise.