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R   27 September 2022

Agreement to cancel sale

I entered  into 'Agreement For Sale' with a buyer for my apartment, which wasn't registered , just done on a stamp paper. The buyer paid 10% advance and wantesd to take out a loan to pay the reat of the amount. We gave him the xerox copies of our documents and he got a loan sanctioned from ICICI bank. Now the bank made DD in our names but the buyer backed out at the last moment . Three months have lapsed since the agreement to sale and we had the agreement to close the deal in two months. We have agreed to cancel the deal and we are preparing an 'Agreement to Cancel' to cancel the sale agreement. However since the DD was already issued in our name has the lien been created already? Will we have difficulty selling it in the future if the buyer doesn't cancel the loan with the bank and pay his dues? 



Learning

 2 Replies

Dr J C Vashista (Advocate)     27 September 2022

No, you are not liable to pay any amount to ICICI Bank. 

However, the vendee ( indenting purchaser of your propperty) has to get the DD cancelled and obtain NOC qua loan against the subject purchase transaction, which stand cancelled.

Vinoth Mathiyan   27 September 2022

whether you have the DD or the buyer have the DD, if you have the DD , return this to the buyer and you are not liable for this
only he is responsible for his loan

no issue on your property to sell for others persons

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