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Ramana Murthy (Engineer)     01 September 2013

Specific performance of sale agreement

Hi,

I have entered into a property sale agreement with a seller in karnataka which has clause that if the seller fails to meet his obligations, buyer is entitled for X amount as penalty and also refund of advance money.

Now the seller want to willfully back out of the agreement mentioning dubious reasons and willing to  return the advance money and pay the penalty as mentioned in the agreement. But I don't want to cancel the agreement and want the sale transaction to be completed. Do I have a right and option to force the seller to execute the sale deed, if I pursue through court? Seller has held the advance money with him for more than 6 months and I have made arrangements for remaining sale consideration amount. so I am at  loss even if I get X amount as penalty. 

Regards,

Ramana

 

 

 

 



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 6 Replies

Ramana Murthy (Engineer)     01 September 2013

Want to add that the time mentioned in agreement is 1 year for executing sale deed and this period is about to end in a month.

Jasper.J (Advocate)     01 September 2013

Under Specific Relief Act, the person who has entered into agreement with the vendor/seller has to prove that he is ready and willing to perform his part of contrat continously and hence you contact an advocate and cause a suitable legal notice to the vendor/sellerand inform him that you are reay and willing to pay the balance sale consideration and request him to receive the balance sale consideration and execute sale deed. This should be completed before the said  vendor issues you a legal notice cancelling the sale agreement entered between both of you, because the said agreement contains a clause of termination of contract and the agreement itself contains a clause for damages.

Ramana Murthy (Engineer)     01 September 2013

Thanks for the response Jasper. Even before the agreement validity time expired, vendor has mentioned his intention of cancelling the agreement orally and over email citing that he is not able to meet his obligations, to which i objected and mentioned that I am willing & ready for sale execution. Is email a valid legal evidence from either side?  If the vendor does not want to execute the sale deed even after I serve the legal notice, Do I have a stand in court to force the vendor to execute sale deed  or pay higher penalty considering the time, opportunity I have lost and actions I have taken to arrange money based on the sale intention claims made by the vendor?

Ramana Murthy (Engineer)     02 September 2013

Hi Experts,

Would be great if you can help me here.

Regards,

Ramana

 

Ramana Murthy (Engineer)     05 September 2013

HI Experts,

Can someone provide your opinion on the above.

Regards,

Ramana

T. Kalaiselvan, Advocate (Advocate)     19 October 2013

Mr. Murthy,

In your case, if the vendor is not agreeing to sell the property as per agreement, you file a suit for specific performance of contract to enforce the sale agreement wherein you have to state that you are ready to deposit the balance of sale consideration amount with the court.


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