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sachin (Director)     06 February 2011

Termination Of Agreement to sell

Dear Sirs,

I have entered into an Agreement to sell my Bunglow in sept 2010 and the sale to be completed by 31st dec 2010  ( 120days ). A token amount of 10% was payed upfront which was to be forfeited upon non-payment

However repeated failures to make part payments as scheduled by the buyer and then seeking extension till 31st Jan 2011 ( 150 days ) for which I made an rider agreement but again the  buyer defaulted on making any payment.Till date the buyer is evading contact and the broker is delaying by buying time...I have asked for an 4 % escalation in the price but have not received any response.The agreement stands terminated as of today with no further agreement for extension.

Please advise course of action.Do I need to send a notice through my lawyer which entitles the buyer for another 15 days time to conclude deal ( is 15 days entitlement from last date of agreement or from issue date of legal notice??? ) and agree to the escalation of 4% which is the loss I have incurred due to entering into another property agreement on the basis of completion of the said agreement . Does the  10 % token amount stands forfeited and/or do I have go into legal proceedings with the court and get dragged into a legal battle for 2/3 years which will restrict me to sell my bunglow or put it up in the open market.... 

Please advise,  Thanks

Sachin Malhotra



Learning

 1 Replies

sanjeev kumar (cleark)     06 February 2011

Dear Sachin

I am not a lawyer but I am a buyer in a case like mentioned by you and I have studied many cases on this point.

Time is not the essence of contract in purchase of property therefore on normal delays you can not cancel the contract.  Give notice and mark presence in tehcil on the specified day. Than repeat the process another time to show your clear intentions. Than you can forfeit the 10% amount, but be prepared for suit because in case opposite party file a suit for specific performance than above mentioned practical steps will prove they were in default.

To file a suit of specific performance buyer will have to give around 5% of agreement amount as court fee and even if you loose it some how , court normally give sale price along with banks rate interest.


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