Anupriya (Sr. Executive) 24 January 2011

Help with propert sale agreement

Hi,

We had agreed to sell our property in September 2010. Due to some personal issues, we are not able to sell the property.

The token agreement states that if the seller for any reason decides to back out of the sale, then he/she has to return the advance given by the buyer with the like amount. So, if the buyer has given X amount as advance, then the seller, upon cancelling the sale gives the buyer 2X.

The agreement was done on a stamp paper. We can only return the money given as advance by the buyer. I do accept that we over looked the clause that said the seller will return the money along with a like amount. What i want to know:

a. Is this sale agreement valid in court?

b. Is the agreement time bound, as in, if we are forced to give 2X, can we give it over a period of 5 years?

c. What will happen if this matter is taken to court?

d. What are the ways we can avoid giving double the money to the buyer?

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2 Replies

tushar (lawyer) 24 January 2011

Hi Anupriya

it is very difficult to answer on the information you have given.Because one can not gather correct information from your information .still go through the agreement and find is there any time limit given ,and in what case the agreement should be terminate.Also see that all the necessary parties from your side signed that agreement and if all parties from your side not signed that agreement then by raising this issue you can terminate agreement .

And finally how much % of token amount you advances from the party.see if you unable to settle the problem amicably then bring any suitable solution .

Anupriya (Sr. Executive) 24 January 2011

Hi Tushar,

Thank you for the response. What other details would ou require my end in order to help me with answers? There is no time limit in the agreement. The sale agreement was for 35 lakhs, Buyer party has given only 50k.