Agreement to sale
Harsh
(Querist) 09 November 2011
This query is : Resolved
Mr. A (seller) has executed an agreement to sale with Mr. B (buyer). Mr A received 1,50,000 from Mr. B and remaining amount will paid on or before 15 july 2011 by Mr. B at the time of registry. This Agreement to sale mentioned that Mr. A will not forfeit Rs. 1,50,000 if Mr. B shows is unwillingness to buy the property. Also, Mr. B will not ask any interest amount if Mr. A shows their unwillingness. Both this condition is silent as far as the time is concern but the agreement only mention the validity of time for registration and remaining amount i.e 15 july 2011. Now this period has passed and its a November month and Mr. B has not yet come to Mr. A for remaining amount as well as for registration. Still the possession is with Mr. A. Now what Mr. A has to do in this situation? Should he send the notice to Mr. B stating that if Mr. B will not come within one week than Mr. A will forfeit his money and the agreement will be cancelled?
ajay sethi
(Expert) 09 November 2011
since Mr B has failed to make balance payment by 15th july 2011 A can issue legal notice to B to pay balance amount within 15 days failing which agreement will be treated as cancelled . you should also mention that you are willing to return earnest money of rs 1,50,000 .
enclose copy of demand draft of 1.50 lakhs to show that you are willing to return the money
ajay sethi
(Expert) 09 November 2011
you cant forfeit the advance amount of rs 1, 50,000as under agreement it specifically mentions thata dvance will not be forfeited
prabhakar singh
(Expert) 09 November 2011
And i could not find a reason to differ.
