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Cancellation of sale agreement

(Querist) 16 April 2012 This query is : Resolved 
Sir, I had entered into sale of my property on 20th Jan 2012 with a purchaser. Date of registration as per the agreement was fixed at 20th Apr, 2012 (upon providing the balance amount). Buyer had given me 30% of the sale amount as a advance amount and the venality clause was to deduct 30% of the advance amount incase if the buyer is not willing to register on the said date. Incase if I am not going to sell it, then i need to return 30% of the advance amount along with the advance amount.

This agreement is not registered and it is made only in a stamp paper. I wanted to wait until 20th of April,2012 and return his money (without any deduction) incase if he doesnot pay me the balance money and complete the registration formalities. I dont want to penalise him but however wanted to safe guard my interest. Hence would like to get something signed from him if I wanted to return his money. Also please let me know what are the other risks involved incase if this registration doesnot get completed.

Thanks for your time and for the great insights that you have provided to others so far.

Thanks,
Paras

ajay sethi (Expert) 16 April 2012
wait till 20th april 20102 . it is hardly a week more . if he dosent pay balance amount then enter into cancellation agreement . get it drafted by a lawyer
Deepak Nair (Expert) 16 April 2012
Agree with the advise of Mr.Sethi.
Paras (Querist) 16 April 2012
Dear Mr.Ajay Sethia & Mr. Deepak,

Thanks for the guidance and time. I will wait until 20th and then consult a good lawyer and move accordingly. However, will seek your advise too.

Thanks once again.

Regards,
Paras
Raj Kumar Makkad (Expert) 16 April 2012
Paras! Who told you that the buyer is not ready to get the registration done in his name?

If he is ready by providing you balance amount of the consideration, you are also bound to get it executed.
Adv.R.P.Chugh (Expert) 16 April 2012
Since a specific date is fixed, time is agreed to be of essence of the contract, if the other party fails to oblige by 20th of April, the contract would become voidable at your option, in simpler words - you can issue a notice - rescinding the contract and appropriating a reasonable amount and not 30 % agreed upon.
Shonee Kapoor (Expert) 16 April 2012
Nothing left to be added to the detailed discussion above.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com
Paras (Querist) 17 April 2012
Dear All,

Thanks for the valuable suggestion given to me. I am too on the same page, I respect professional ethics and hence would want the buyer to proceed with the registration at the said date after paying the balance amount. Incase if he complete the transaction, planning to deduct only 10% of the advance amount paid by him and return him the balance amount (after getting the required cancellation agreement done).
Thanks once again.

Warm Regards,
Paras
Paras (Querist) 17 April 2012
sorry there is a typo mistake in my previous message, the below line should be read as:

Incase if he doesnot complete the transaction, planning to deduct only 10% of the advance amount paid by him and return him the balance amount (after getting the required cancellation agreement done).


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