Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

BTN (Other)     05 March 2014

Information on potential sale agreement

Property was under litigation for getting the tenants vacated. The litigation is resolved now. During the litigation, there was an agreement made to sell the property between the owner & a potential buyer 2 years ago for a certain value and a token advance was paid by the buyer. Now with the litigation resolved, there is a request made to buyer to reconsider the price at current market rate. The buyer is now refusing to reconsider this price change. The owner is ready to refund to the buyer the advance. The buyer is now refusing to increase the price and is also hinting to go to the court. Is the agreement that was made with the token advance valid and what is the basis that the buyer can go to the court and will the court accept such a case? How should or would the seller respond to the buyer in such a situation?



Learning

 5 Replies

adv.raghavan (Advocate,9444674980)     06 March 2014

If the validity of the agreement does not exceed three years, the buyer can insist for the sale of property as per old agreement. and he can go for a suit of a same, and the seller is bound to oblige, failure on his part to oblige and do the registration, will make his property litigated.  If it is more than 3 years, the buyer will have little hope to succeed  in his case. 

T. Kalaiselvan, Advocate (Advocate)     06 March 2014

I agree with learned advocate Raghavan's opinion on this issue.  the seller has no right to alter the agree sale consideration price at this stage.  the buyer has all reasons to approach the court with a suit for specific performance of contract seeking court's intervention to direct the vendor to execute the sale deed of the property as per the sale agreement, provided the sale agreement is not not barred by limitation.

BTN (Other)     08 March 2014

Thank You for this information.

There is a clause which says "Time for Completion : both the parties have agreed to complete the sale transaction on or before 30 April 2012 and the same may be extended upon mutual consent"

Now that the seller does not have intention to sell at the same price or extend the same, Is it possible for the buyer to go to the court with this clause seeking courts intervention to execute the sale or can the seller cancel this agreement and should the seller go to the court seeking this cancellation.

BTN (Other)     08 March 2014

Thank You for this information.

There is a clause which says "Time for Completion : both the parties have agreed to complete the sale transaction on or before 30 April 2012 and the same may be extended upon mutual consent". The agreement  was signed in the month of December 2011.

Now that the seller does not have intention to sell at the same price or extend the same, Is it possible for the buyer to go to the court with this clause seeking courts intervention to execute the sale or can the seller cancel this agreement and should the seller go to the court seeking this cancellation.

adv.raghavan (Advocate,9444674980)     08 March 2014

yes he can do the same.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register