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Cancellation of sale agreement

Querist : Anonymous (Querist) 01 February 2025 This query is : Resolved 
Sale agreement was made with advance of Rs 20.0 lakhs on Rs 500 stamp paper. Next instalment amount was not paid on that date and postponed indefinetly. So we sent a notice for cancellation of sale agreement and returned the advance amount in full by transferring to their account. But party is not willing to cancel the agreement. Now another party has approached us for purchase of the property. Without cancelling the earlier agreement can we register the property to another party.
T. Kalaiselvan, Advocate (Expert) 01 February 2025
The sale agreement is reported to have been executed by an unregistered deed, hence if either of the party has breached or violated the conditions then the aggrieved party can issue a legal notice intimating the decision to cancel the sale agreement and also followed by a newspaper publication in the form of public notice to this effect.
you can then sell the property in favor of the subsequent prospective purchaser
Querist : Anonymous (Querist) 01 February 2025
Thank you very much.
T. Kalaiselvan, Advocate (Expert) 01 February 2025
You are welcome for your appreciations.
kavksatyanarayana (Expert) 01 February 2025
What are the conditions of the sale agreement? Is there any time to cancel it? The sale agreement must be registered. However, it is unregistered, and because the Rs.500/—stamp is not sufficient, it does not have a full stamp duty. You may file a suit against the person for relief but the stamp duty will be levied with a fine for the process of suit.
Advocate Bhartesh goyal (Expert) 02 February 2025
Issue legal notice to buyer and asked him that since he has violated the agreed terms and conditions of agreement and not paid the due installments so in such a situation it is better to cancel the deal and which is hereby cancelled thereafter you can proceed for another agreement.
Kishor Mehta (Expert) 02 February 2025
It will be advisable to get an order from the Hon.Court to set you completely free of the agreement. You can not cancel an agreement unilaterally. Though requisite amount of stamp fees were not paid for registring the agreement, it was a written agreement and Hon. Court may consider it enforceable after paying the requisite amount for the stamp fees. It would have been appropriate if a suit to enforce the terms of the agrrement was filed. As the matter stands you may face a suit if you sell the property to a third party without being absolved of the liabilities of the previous agreement.
Querist : Anonymous (Querist) 03 February 2025
Upto 31.3.25 there is time for registration of property for first party. If we register the property to another party after that time can first party go to court. Property value is Rs 2 crores.
Kishor Mehta (Expert) 03 February 2025
If the purchaser fails to make the payment of the balance amount and execute and register the sale deed on 31/03/2025 as agreed upon, then you have to issue a 30 days notice calling him to fulfil the terms of agreement failing which you will cancel the agreement. However, a word of caution, a mere notice may not absolve you from your responsibilities of a written agreement.
Kishor Mehta (Expert) 03 February 2025
Yes, the opposite Party can go to the Court based on the written agreement, that is why you are advised to be cautious before selling the property to a third party.
Querist : Anonymous (Querist) 03 February 2025
Legally he can go to Court. But practically no amount is due from us and Court fees and stamp duty charges are very heavy. Can anyone take this risk.
Kishor Mehta (Expert) 03 February 2025
If the other party wishes to take you to Court on the basis of your written agreement on ₹500/- stamp paper, he will have to get the agreement adequately stamped and registered for it to be admissible in the Court. Your responsibility towards the share of the stamp paper charges and registration fee will depend on the terms of the agreement in that respect.
Querist : Anonymous (Querist) 03 February 2025
As per agreement all registration charges are not our responsibility.
kavksatyanarayana (Expert) 03 February 2025
However, he may proceed legally.
P. Venu (Expert) 06 February 2025
What are the conditions in the agreement for cancellation? Could it be cancelled just because further installments have not been paid?
To my knowledge, it is not mandatory that the agreement of sale be registered unless there is an enactment to that effect in the State concerned.


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