Hello Sir / Madam
I had a property (Flat) in Dombivli, which we have decided to dispose off. Accordingly, a party was found and agreement of sale effected in the name of the purcharser in the 1st week of Sept' 2013.
During the agreement, the purchaser had a part payment, post which again in the 3rd week of Oct' 2013, 2nd installment was paid by the purchaser. He has now applied for a Housing loan from LIC and is yet to receive the final disbursement cheque from the financial institution.
We had inserted a clause in the Agreement of Sale that from the date of agreement, within 60 days the entire payment has to be made by the purchaser failing which the agreement would be deemed to be cancelled. The 60 days period elapses by Nov' 04, 2013.
Purchaser claims that he be given additional time limit of 15 days, as he has already submitted the necessary documents to LIC and that the final payments is awaited, though he has received the sanction letter.
Need clarification on:
a. Whether the agreement of sale be void post the 60 days automatically or is it that I can modify or ratify it to extend the time frame by another 15 days.
b. Can I even with out any modification in the agreement wait for the final payment despite the 60 days clause in the agreement. If so, will my legal position be weak if the purchaser doesn't make a payment within the requested 15 days extension?
Kindly help.
Regards
Ganesh
