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RAVI KUMAR (PROPRIETOR)     21 November 2010

Validity of Agreement of Sale

I am a Builder.  A prospective purchaser wanted to buy a flat in one of my projects.  He has paid 50% of the sale consideration as advance, and the time limit for balance payment was 3 months.  However, even after 3 years, he is unable to paythe balance amount, and whenever I call him, he would beg that he will arrange funds in a weeks time, and request for extension.  Now that the period is more than 3 years lapsed, can I sell the flat to someone else, and pay the advance money received from the 1st agreement holder.  Should I serve a notice first and then take up the sale.  I do not want to forefeit his advance.  I want to pay it back.  Please let me know the right course of action .

regards

RAVI



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 3 Replies

J. Manigandan (Advocate)     21 November 2010

Period of agreement is only 3 months but you have waited for completion of sale transaction for more than 3 years, therefore you may sever a Notice stating the sale agreement is teminated after expire of 3 months itself and you are not legally bound by the agreement along with the Advance amount paid by the Purchaser by way of D.D. or Money order and wait for the reply.  In case the Purchaser refussed to receive the amount then file a suit for declartion that the agreement of sale is un-enforciable as time barred.

Advocate Bhartesh goyal (advocate)     21 November 2010

 In your case agreed time  for making the balance payment was 3 months and the purchaser did'nt make balance payment within the time limit and even in 3 years from the date of agreement .Time is essence of contract and therefore purchaser is not entitled to get the flat from you .Before selling the said flat to another issue a legal notice to avoid the controversy and refund him the advance payment .


(Guest)

well said mr.mani


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