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Tassy Jo JO (XXX)     02 January 2012

Cancellation of registered sale agreement

Dear Expert,

I have registered a Sale deed with the buyer for my Flat in Mumbai western suburb. The advance amount taken is 15% of the total value. Balance 85% was supposed to come by way of Bank Loan. The Sale deed has a forfieture clause with penalty of 2% forfieture amount if the deal is cancelled. Sale deed also mentions if the Buyer fails to pay the balance consideration amount by the stipulated date then the deal will be cancelled and the buyer will have to come to registrar to cancel the deal. The buyer could not make the payment within the time frame and hence technically the deal is cancelled. We have all original documents( except the sale deed with buyers) in our possession. I have following queries:

1) Is it mandatory to register the cancellation deed before re-registering the property with new purchasers.The previous buyers are deliberately wasting time and not responding so that we can not sell our property to new purchasers. 

2) If the answer to the above question is YES then how can I force the previous buyers to cancel the deed at earliest so that I donot loose out on prospective customers.

3) What is the fastest legal procedure to register the cancellation without having to spoil the property title.


 9 Replies

kumar (NIL)     02 January 2012

Dear Tasneem,

Let me know one thing you said that you have already registered the document. Can I know what is the document Type, is that Sale Agreement or Sale Deed.

The Buyer has already failed to pay the remaining payment in time, So you all the rights to take any kind of action against him. Ask him one more time whether is he coming for cancel the deed with respective Registrar, if the buyer is not ready to do the Cancellation with Penalty charges - then you can defntly have a right to go through legally against him. I suggest you to approach an advocate and go through legally. But ensure that whatever is got registered already, that should be cancelled at any cost. Other wise you will have to loose property.


Tassy Jo JO (XXX)     02 January 2012

Dear Mr. Kumar,

Thankyou for your prompt reply.

We have registered a Sale deed and the purchaser has paid stamp duty & registeration fee.

Since the purchaser is still buying time in coming to the registrar to cancel the deed and since legal course can take a very long time can I go ahead and sell the flat in the mean time and get it registered with new purchasers and let the previous cancellation take its own time?

I am in need of money and want to sell property fast but the previous purchaser is wasting time and any legal course will also mean more time.

Thanks in Advance,


kumar (NIL)     02 January 2012


You can't sell the property until unless the previous sale deed get cancelled. I better suggest you to give a legal notice through an advocate to the buyer. If you sell the property without cancelling the earlier one, you will have face problems from the new buyers and also from the old one. 

Mean while you can do one thing, you can collect an NOC from the old buyer stating that he doesn't have any objection to sell the property due to he has not paid the amount in time, and pls take  with his and his family members signatures on that NOC.   Pls be ensure that it should be on Rs. 100/- judicial stamp paper and with notary. You can tell the new buyer all this story and show them the NOC. Later on whenever you and the old buyer get time, then go for cancellation. It's a temporaty solution as you said that, you are in need of money. This is not a permenant solution (even though it is not acceptable as per law, that is purely on understanding between buyer's and you)

Finally I suggest you not to take any risk, you better approach an advocate give a legal notice to the buyer.

Thank You....

Tassy Jo JO (XXX)     03 January 2012

Dear Mr. Kumar,

Thankyou once again for your valueable feedback.

I understand that by all means I have to get this sale deed cancelled in front of registrar even if it takes time.

Only one clarification I need is that if new buyers agree and we do Sale deed registeration with New buyers before cancellation with previous buyers and do cancellation on later date will the new registeration be counted as NULL and VOID in the eyes of Law?

Thanks in Advance,


kumar (NIL)     09 January 2012

Dear Tasneem,

kumar (NIL)     09 January 2012

As per my knowledge, if you do the registration with the new buyers - that will apsolutly invalid document as per law. And this transaction is called as " Double Registration ", this may effect you in future from eyes of law.

Try to take time from the old buyer and do the cancellation or else please initiate a civil case on the old buyer and proceed with the law.

That's it.,.,.,




Tassy Jo JO (XXX)     09 January 2012

Thankyou Mr. Kumar.  Is there any time frame given in a civil suit?

kumar (NIL)     10 January 2012

you better give a notice to the old buyer immediatly through an advocate ....

Tassy Jo JO (XXX)     10 January 2012

Thankyou Mr. Kumar.

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