shruti (ame) 07 April 2012

Agreement to sell n purchase

the sale of the property was done under an agreement and earnest money of 2.5 LAC was taken by the owner.

the agreement to sell and purchase clearly states that if the buyer doesnt pay the full value of the property before the stipulated date he looses the earnest money. only 1 week is left for the agreement to expire and the buyer has not paid any more money other than the bayana and is not answering calls.as a seller ,what should be my next step.

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3 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com)) 07 April 2012

Dear Ms.Shruti,

As a seller your step should be to cancel the agreement as soon as time fixed elapses (time is of the essence of the contract here). On cancellation you can appropriate the earnest amount. In all probability the buyer would try filing a specific performance suit (in view of esclation of property prices) which he would be unlikely to get if a proper legal notice is served at once right now.

Feel free to email with details !

Ronak (Trainee) 21 April 2012

Hi,

I am purchasing a flat from the second owner of the flat. He has the original agreemnt entered between him man the first owner. But the original agreement entered between the first owner and the builder is lost. Can i purchase the said flat.

Helpseeker (Manager) 03 June 2012

Dear Mr. Chugh,

i have a similar case where I got into an agreement with the buyer, where he paid me some advance, and after that went unapproachable for some time, where I kept calling and writing mails, only to return and tell me that he has some payment issues. The deal was done without broker. In the agreement we had agreed that the full and final payment had to be made on or before 25 may 2012 at the time of signing final transfer documents in records of the builder (as it is under construction property).

all this time he remained unapproachable and then on last day of the deal he wrote an email stating that he wanted the transfer documents first, and since he could not arrange cash amount. He also stated that the agreement is "irrevocable and binding on both of us".

since then he has been again unapproachable. I have written several times we need to speak and come to a conclusion, but he never takes my call, never replies SMS or emails. I consulted a lawyer and sent him a registered post letter for termination of the agreement. But hv not got any response on that.

My concerns are:

1. Is the agreement really irrevocable. Can he force me to sell the flat to him by specific performance, even if I don't want to

2. I need money and has another buyer ready, what precautions shall i take for the previous deal before selling into new buyer. How can I cancel the agreement, in light of the fact that he has the original agreement and is not responding. Shall I wait to cancel the previous agreement and then sell it to new buyer.

it is adding a lot to my stress as I have the house and I need money but still cannot sell it.

Regards