Breach of contract by seller due to unavailability of title deads
chandranaresh
(Querist) 22 September 2013
This query is : Resolved
Dear Seniors,
Am a law student in final year, my self facing one issue related to my land sale.I request you to help me on this.
I sold my land of 2 acres in feb,2012 for cost of 10 laks, and i singed on agreement of sale and the buyer paid 1 laks as token advance and he has to pay the amount within 3 months by May 31,2012. By that time i could not produce my title deads and only i have passbooks, in june they paid another 1 lakh(thru check) and i signed back of the document as i am extending that to another one month till July,2012.
Meanwhile they sold that land to other 3rd party for some excessive cost(they have written same agrement of sale to third party) with out intimating me.
Now the problem for me as i could not produce the Title dead,as i was not able to get title dead from MRO office as they are asking to produce 30 years old original purchage documents(that i don't have).
I request for cancellation of agreement and requested as i pay with interest, but they are rejecting and asking for land registration on third party as the land cost doubled.
The orginal time was lapsed as it was july,2012.By that time i have to register on the name of original buyer. But from last 1 year negotiations are happening and trying for title dead. But nothing materialized.
Now the third party getting ready to sue on the orginal buyer (cheating case also), the orignal buyer threatening me to sue against me for breach of contract and Cheating case.
As a student i could not decide on how to proceed further. I have wrong as i could not produce the Title dead and same time i can't register on their name.
I request you to please help me on my further steps, whether i can proceed by giving notice to the original buyer or not. (if yes what i have to give).
One advocate advised as we can give notice as they did not came with money by stipulated date hence we are cancelling the agreement and the amount was forefieted. Is that correct movement...
Please advise. am waiting for your valueable reapies.
Thanks,
Chandra
V R SHROFF
(Expert) 22 September 2013
u said "One advocate advised as we can give notice as they did not came with money by stipulated date hence we are cancelling the agreement and the amount was forefieted. Is that correct movement."
We Experts cannot be used to crosscheck your Advocate.Once u inform us, you have your Advocate, We cannot interfere. Professional Ethics.
You seems to take advantage of increase in price..
As you already sold your land, and collected money, you cannot go back with excuses.
No fault on buyer's part, Why innocent buyer should suffer?? He already entered into contract, and paid you consideration amount.
Why should you sell, if your titles were not clear?? It is your Responsibility. You can't cheat.
Dr J C Vashista
(Expert) 22 September 2013
I agree with Mr. V R Shroff, you should have clear title before execution of agreement to sell and/or must have endorsed the fact in the agreement.
You have further faulted in taking advantage of non-payment of consideration amount, which the buyer was oblidged to pay at the time of execution of Sale Deed;
Now get the issue sorted out amicably or face the music and enjoy
Sudhir Kumar, Advocate
(Expert) 22 September 2013
I agree with Mr Shroff and I would add :-
(I) You never had title deed and posed as owner and collected advance.
(II) although not told by you the buyer appears to be profession land dealer (not fully legal) and did not bother about the title deed and probably had more faith in grabbing land.
(III) for the misfortune of buyer you happened to be more clever.
(IV) the buyer during course of his could find fresh buyer and signed agreement to his investment for a higher price.
(V)you do not have title deed.
(VI) ow both the contracts are getting frustrated because you DO NOT HAVE THE TITLE.
All what you say that the documents are 30 years old and you do not have them. All this is hard to believe.
Now 3rd party and 2nd party are following the correctest legal path.
either
you mitigate the loss suffered by 2nd party ( the profit which he would have earned by second sale) and loss suffered by 3rd party which he would have earned by sale/use of the land.
or
go to jail.
or
suffer both the above.
You have another option PRODUCE THE TITLE DEED IN YOUR FAVOUR AND GET THE SALE FINALISED.
Sudhir Kumar, Advocate
(Expert) 22 September 2013
above analysis will indicate the reason behind Mr RK Goyal advising you to
" Better solve the issue amicably"
which I fully agree.
In this story the wrong person is none else than you.
Sudhir Kumar, Advocate
(Expert) 22 September 2013
If you give a notice that they are not ready to pay then they can very well deposit the balance in court and ask for registration and you do not have the title.
Such step will be another screw in your handcuff.
chandranaresh
(Querist) 22 September 2013
All the Experts, Really thank full to your suggestions.
I have already conveyed them as i am not expecting any extra cost even the land rate increased, my only concern is i could not furnish the title dead, they only agreed to take the responsibility to bring the title dead but the discussion happened only orally.
We approached local leaders 3 months back to resolve, infront of them i requested to pay the remaining amount and hold 1 to 2 laks till get the title dead, but they are not agreeing.
Now they are getting ready to give notice to me, hence i asked for suggetion.
Why i could not produce the original documents are , couple of years back we got that property from court itself, the case run between our family members.
As per your suggetions i approached to local leaders again and trying to solve amicably.
Here again i am not expecting any extra cost apart from the original agreement.
If the negotions not worked, and suppose i could not produce the title dead,
What will be the impact to me, still i need to face the criminal case and go to jail as sir told or any other remedy for me.
I am ready to agree my wrong in the court as am not able to produce the title dead, we sold that land on passbooks & revenue records with trust and mutual understanding.
If really they sue on me, can i request court to help me to get the title deads.
Thanks for your quick replies.
Sudhir Kumar, Advocate
(Expert) 23 September 2013
the main thing is that why did you approach anyone for sale of land unless and until title deeds were with you and why you failed to disclose this fact to buyer.
In this situation who will believe that you do not want to extract higher amount.
Why you should be allowed to cling on to 1-2 lakh even for a day, while you are not the owner of the land (atleast you are unable to prove).
They will be doing a favour to you if they settle with just double the amount you received from them and let you go.
or
You have another option PRODUCE THE TITLE DEED IN YOUR FAVOUR AND GET THE SALE FINALISED.
P. Venu
(Expert) 23 September 2013
What do you mean by title deed? How did you get possession of the land?
