I entered into an Unregistered Sale Agreement with the Purchaser of my house for 90,00,000 in a Rs. 20 stamp paper.
The Purchaser paid earnest money of 10,00,000 at the time of Sale Agreement, with the rest 80,00,000 to be paid subsequently.
The status, as of today is:
1. 10 days have passed since the completion of 180 days mentioned in the contract.
2. Only 50,00,000 has been paid to me by the purchaser. 40,00,000 is remaining.
3. He has been delaying the remaining payment citing one reason or the other, based either on his financial or medical grounds. We are in polite talking terms but I have been continually pestering, but to no action from his side.
4. I wish to not go ahead with him anymore. Read "Cancel this Agreement" in it's entirity and refund him the entire amount of money paid by him, following procedure(s) mentioned in the Agreement.
The following is an extract of certain relevant points agreed between me and the purchaser:
1. That the purchaser on payment of the entire consideration money as mentioned hereinbefore, less the amount paid this date as earnest money, will get the Deed of Conveyence executed and registered in his name or the name of his nominee within 180 days from this date of execution of this Agreement. Time is the essence of this contract.
2. That the Seller or his heirs shall be bound to transfer the said property by sale in favour of the Purchaser on receipt of the full consideration money as stipulated hereinbefore and in case of failure on the part of the Seller, the Purchaser will have the right to get the sale completed under the provisions of SPECIFIC PERFORMANCE OF CONTRACT.
3. That in case the Purchaser's Advocate does not approve of the title of the said property in question because of any defects or shortcomings, the Seller should immediately refund thesaid earneest money of 10,00,000 with FD interest @ "State Bank of India" to the Purchaser.
If however, the title is found to be absolutely free and marketable and the Purchaser fails to purchase the said property, in that event the vendors shall refund the said amount of advance money after deducting 1% as liquidated damages to the Purchaser.
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Kindly note that there is no clause mentioning "Agreement shall be cancelled if ......"
Also note that I have been issuing money receipts everytime he pays me money.
My Questions are:
1. Being a mutual (unregistered) Agreement, does the Agreement automatically lapse since 180 days have already passed?
2. Can I consider that the Agreement has been breached by him (or failed by him due to passing of time frame) and I can ask him to collect his money back?
3. Can he drag me to court? I ask this because I have not failed anyhow on my part. Rather it is he who has failed to get the property registered in 180 days. So can he still enforce his right?
4. I have safely kept the entire amount of money he has paid to me. I have no problem with a mutual refund. But if he is not taking back the money willingly, can he later claim that I have not paid back the money to him? What is the exact procedure to pay back the money.
5. What if he refuses to take back his money physically? How am I to proceed?
6. Can or Should I accept a part of the remaining money from him without making another Sale Agreement (or an extension of the same) ?
I would be highly obliged if you can help me by answering my queries and stating my position in the transaction.
Regards.
