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shiv kumar   18 August 2015

Sale deed cancellation by the seller

Hi all,

This question is on behalf of my close friend who recently bought a second hand flat. Few days back, the registration has been completed and bank has disbursed the cheque too.

The seller also bought the flat few years back on loan and the loan also got transferred  now. Now, the issue is -  the seller is threatening that he will cancel the sale deed, if he didn't get the home loan closure letter from the bank.

However, bank said that it is a system generated letter and takes 10-15 days of time and they  confirmed the closure to the seller via official mail.

In this case, can the seller cancel the sale deed? And if yes, can we take any legal action against him



Learning

 5 Replies

G.L.N. Prasad (Retired employee.)     18 August 2015

This is just threat.  Even before he comes to you next time, send a letter to the seller's bank about the  confirmation of sale and loan transfer, and send copy of this notice with reply received from Bank to seller and ask him not to disturb and harass with threats any more, as the procedure takes time and nothing is related in between the parties, and the part of a third party, namely a Bank is a procedural formality.

1 Like

shiv kumar   19 August 2015

Thank you very much for your reply Mr. Prasad. However, i forgot to add that the seller has not handed over the house keys yet to the buyer(my friend). Does that change anything and although it is a threat, is cancellation at this stage possible and what we can do to stop it?

G.L.N. Prasad (Retired employee.)     19 August 2015

Physical possession and delivery of property is essential for any sale transactions.  Otherwise you have to seek for possession by going through Court procedure, which unnecessarily takes abnormal time. (In case of complications)

Biswanath Roy (Advocate)     20 August 2015

If the sale deed has been registered before statutory registering authority and possession handed over to the buyer then sale deed cannot be cancelled.

G.L.N. Prasad (Retired employee.)     21 August 2015

Any sale deed can be cancelled by a an appropriate Court, on receiving proper petition from proper persons only.  The sale deed can only be cancelled through a declaration suit.


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