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Saira Banu (Nil)     13 January 2016

Sale agreement

A sale agreement on 20 rs stamp paper was made in DEC 2014 by 70 year old lady to sell to another person. In that a clause was mentioned in writing stating that IN THE EVENT IF THE TENANTS DONT VACATE BY APR 2015 THEN THIS AGREEMENT STANDS CANCELLED and is counter signed by both the parties. There are 5 portions and she made a settlement deed for half portion to her daughter one year before the sale agreement. The buyer paid 15L so far but was delaying to register. The lady made another settlement deed for the other half also to her daughter in Oct 2015 and now the daughter is the full owner of the property.

The buyer is now insisting to sell the property or pay another 15L more as damages.  When the daughter went to sign tenancy agreement with 3 tenants which have already expired 3 months back, the buyer who is also one of the tenants in this property for 5 years, has told the tenants not to sign the tenancy agreements. This buyer is the one who used to collect rents from the tenants and send to the womans bank account.  Now he has collected the rents from the tenants and is not sending the money.  Can the daughter make a police complaint to the police on all the tenants for occupying the portions illegally as she is the owner now.  Will the daughter be compelled to sell the house by court as per the unregistered sale agreement made between the old lady and the buyer? The old lady is saying that she is unable to pay the advance to the buyer and is ready to go to jail if he files a case.  She is 70 years and cant stand and walk properly also.  What will be the view of the Judge.  Since the property is not in the old lady name any more, can the daughter be compelled to sell on the old lady's behalf.



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 4 Replies

adv.raghavan (Advocate,9444674980)     17 January 2016

If the settlement deed was registered   she (daughter)can file suit for recovery of property and mesne profit.  she cannot take criminal action as the case involves civil dispute. It is  long drawn legal battle she can prefer to sort it out through proper negotiation.

1 Like

Saira Banu (Nil)     19 January 2016

Thanks for the reply Mr. Raghavan. The daughter has the registered SETTLEMENT DEED on her name.  The new tenants have paid advance and are paying rent to the so called buyer who in turn has been sending the money to the daughter so far. But now he is collecting the rent from them and is not letting the tenants to sign the rental agreement which means the tenants are occupying illegally.  If the daughter complains to the police that the tenants are not signing the tenancy agreement, what action will the police take immediately. Will they ask the tenants to either sign the tenancy agreement immediately or will the tenants be taken in custody for staying illegally?

The buyer says that the old lady should have informed him before registering the settlement deed to her daughter and returned the money to him.  But the old lady informed him after registering the settlement deed and have been telling him to collect the money he paid her.  But the buyer is not willing to take the money and he says that he still wants to buy the property. Since he has delayed for more than 18 months, how much more time can the old lady give him to register the property, though the old lady is not the owner any more, it has to be the daughter who should sell as she is the legal owner now.

In the event if the dispute goes to court, and if the old lady says that she does not know much about law and if she says that she is not in a position to pay back the advance and she is willing to go to jail, and if she is sentenced to jail, will she still have to pay after completing the jail term? Will the court ask her daughter to sell if the old lady is not able to pay?  Please advise.

We are trying to solve it peacefully but the buyer is likely to demand extra 15L if we are not selling. In that case, the old lady says that she will even not pay his actual advance and she is ready to go to jail. Please advise and thanks

adv.raghavan (Advocate,9444674980)     20 January 2016

I hope you have long tale to tell, without going into the merits i can advice you the following;

1, she  cannot file criminal complaint as the case is of pure civil nature.

2, The buyer if he thinks he has a valid agreement in place and subsequent refusal by the old lady to come registeration he can go for specific performance, other than that he can file money suit for advance paid. He cannot threaten other tenants, it amounts to criminal offence.

 

I hope things wil get better.

Saira Banu (Nil)     20 January 2016

Thanks once again Mr. Raghavan for your valuable advise. Just a last clarification. Now that the daughter is the owner, the old lady cannot execute the sale deed any more right? Will the daughter be compelled to sell the property on the old lady's behalf? This information is very important. Please advise. Thank you so much


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