LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

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.


 12 Replies

niranjan (civil practice)     02 January 2012

1. Issue a regd,.notice informing him about cancellation of sale agreement.forfeiting the earnest money as per terms, ask him to take back the remaining amount and send him a draft for cancellation of sale agreement and ask him to come on specific date  2. Give public Notice that sale agreement has been cancelled by Regd.notice with the named buyer and declare that you or the property will not be responsible and the agreement will not bind in future and that you are proceeding to sale your property..

Tassy Jo JO (XXX)     02 January 2012

Dear Mr. Niranjan,

Thankyou for your prompt reply. I am not clear about the following:

1) Do I have to ask him to come to registrar office for cancellation of deed since this is a registered document?

2) Can a registered notice serve as a legal document for cancellation of deed?

3) Can I register the property with new purchasers with just servicing a legal registered notice to previous defaulting purchasers?

4) What abt the stamp duty/registeration amount which the purchasers may have to claim back? For that purpose can he blackmail us?

5) Is there any court fee which I may have to bear.

Thanks in Advance,



A W K Mecci (Advocate)     03 January 2012

Hello, Ms Tasneem has in her first post clearly mentioned that the sale deed is under the custody of buyer. I think the experts are missing this link! As long as the original sale deed remains under the custody of buyer, I feel, it is a troublesome transaction for the seller to wind up this transaction.


Abdul Wahab


Tassy Jo JO (XXX)     03 January 2012

Dear Mr. Wahab,

I would like to clarify that the original Sale Deed of first Sale bet builder and us is in my possession. However the second sale deed with the buyer and us for which buyer has done stamp duty and registeration is in Buyers custody. Will this still be a troublesome transaction?



niranjan (civil practice)     03 January 2012

Since the first sale agreement is registered,you need to get c ancellation deed regd. Not only regd.nootice but alongwith public notice would serve the purpose if he do not file objection,would mean that he has waived his right.Or still you want to make it sure,file suit to get that sale agreement cancelled and forfeiture of the deposit. and if you file suit you will have to pay court fee stamp.I could not follow your last question.

Tassy Jo JO (XXX)     03 January 2012

Thank you Mr. Niranjan for the reply.

If I get the deed cancelled with registrar do I still need to file suit?

Can you please tell me who has to pay court fee buyer or seller and what is the amount?

A W K Mecci (Advocate)     04 January 2012


Your statements are confusing.  Please be clear as to whether the buyer has in his custody registered sale agreement or registered sale deed.  


If it is registered sale agreement, you are safe, you please follow the advise already rendered to you.  If it is a registered sale deed you having received only some percentage of sale consideration, sorry, you are really in very worst possible situation.

niranjan (civil practice)     04 January 2012

If you get  cancellation deed regd. then you have not to file suit and you have not to pay any court fees.Non judicial stamp duty is tobe paid by either both 50-50 or the purchaser when you go for registration of deed. before the Registrar.

Tassy Jo JO (XXX)     04 January 2012

Hello Mr. Wahad,

Its the registered sale agreement which was supposed to be given to Bank for his loan.

Thanks for your reply.

Tassy Jo JO (XXX)     04 January 2012

Dear Mr. Niranjan,

Am a bit worried abt the stamp duty part you just mentioned. Do we have to pay stamp duty while registering cancellation of deed?  What if the buyer refuses to pay? How is the stamp duty calculated. Please let me know this is adding to my problems more and more.

Thanks in Advance,

Mushtaque Inamdar (Accounts Assistant)     22 August 2014

Sir / Madam

Can a Registered Agreement for sale be cancelled by legal heirs if the agreement for sale made by father and father dies after making agreement for sale without the consent of their legal heirs as all the legal heirs was major when agreement for sale made.

Mushtaque Inamdar (Accounts Assistant)     22 August 2014

Sir / Madam

Can a Registered Agreement for sale be cancelled by legal heirs if the agreement for sale made by father  and other party without taking the consent of legal heirs as all the legal heirs was major when agreement for sale was made.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads