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Pradeep (na)     15 May 2024

Registered sale agreement expired , seller refunding full advance money but not registering

Dear Lawyer, Need your advice.

I entered into selling my agriculture land on 01Sept2023 (3 months period)

Buyer paid me 50% money

Buyer took the responsibility of doing PODI within said period and complete transaction within 01Dec2023

PODI process gets delayed by 4 months, hence my objective of selling failed and I had to source cash loan from friends for that purpose.

Now I want to save the property for future and wants to refund full advance to the buyer (plus interest + Podi charges)

I have already sent legal notice along with cheque of advance money to buyer stating inordinate delay in completeing the transaction has failed the objective of selling.

Buyer not accepting my terms, he wants my property. But I don't want to sell it.  Please HELP.





 9 Replies

Real Soul.... (LEGAL)     15 May 2024

If it was Buyer failuer to proceed the sale then it is already terminated, However if there is condition that upon failuer the payment will be returned then you should return the money otherwsie it gets forfiieted. you don even need to pay after the agreement expiry.

T. Kalaiselvan, Advocate (Advocate)     15 May 2024

Have you sent the communication about the cancellation of sale agreement by registered post and was it acknowledged by the buyer?

Besides you have already sent the cheque in his favour towards the return of advance amount hence it is clear that since he didn't perform his part of contract, you have rightly cancelled the unregistered sale agreement.

Hence his case, if filed any, will not be maintainable so you can ask him to proceed legally which can be challenged properly.

1 Like

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     15 May 2024

Buyer may treat the contract as rescinded and sue the seller for damages. This is also known as 'damages for anticipatory breach'. The damages will be assessed according to the prices prevailing on the date of breach. He may treat the contract as subsisting and wait till the date of delivery.

1 Like

Pradeep (na)     15 May 2024

Thanks for response Sir, buyers advance is lying unutilized, I want to give him back , ready to pay some interest as well , want to be a gentleman. Thanks again

T. Kalaiselvan, Advocate (Advocate)     15 May 2024

If he is not forthcoming to receive back his advance amount with interest,  you cannot go behind begging. 

After communication of the decision to cancel the sale agreement by a legal notice sent by registered post,  you may issue a public notice in this regard in a local newspaper and remain silent without taking any action against it after that. 

When he goes to court. this legal notice and the newspaper publication copy will come to your rescue to defend your interests. 

1 Like

Pradeep (na)     15 May 2024

Thank you Sir

T. Kalaiselvan, Advocate (Advocate)     15 May 2024

You are welcome Sir. 

1 Like

Aadil (Student)     18 May 2024

Dear Pradeep,
Thank you for the query! I am Aadil and I will try to answer your question.
The short answer to your question is that YES, you can terminate the sale deed.
A sale deed is a legal document that is used to transfer the ownership of a property from the seller to the buyer. As per Specific Relief Act, 1963, a sale deed can be cancelled within a timespan of three years. The seller reserves the right to cancel the deed after initial registration if the buyer has failed to complete the financial transaction, and thus the terms of the sale. The plaintiff may file a civil suit at the relevant court of jurisdiction seeking the cancellation of the said sale deed. As per the Indian Registration Act 1908, the party responsible for the cancellation of the deed may have to compensate the opposite party for the losses incurred by them due to the cancellation, depending on the factors of the case.
In this case it is important to understand that the burden of proof lies on the plaintiff to show the reason due to which they have initiated said suit and desires cancellation of the sale deed.
There are two reasons that I can see for the cancellation of the deed:

  • The buyer has failed to complete the financial transaction and has thus violated the terms of the deed as they have only yet paid fifty percent of the total amount.
  • The buyer has delayed the transaction by a considerable amount of time from the agreed date which has resulted in the plaintiff suffering loss (Having to source cash loan from friends).

Also, the fact that you have sent a legal notice to the buyer apprising them of the current situation and included a cheque for the advance money paid and your willingness to pay the interest amount should help you in court in getting a decision in your favour. 
I hope this helps. Thank you for your time and patience!


2 Like

Pradeep (na)     20 May 2024

Thanks for your reply 

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