Is it necessary to have forfeiture clause in a sale agreement in India
24-Feb-2023 (In Property Law)
I wanted to buy a resale flat in Nagpur and have partially booked one by paying the required token money. Now, I need to form an agreement for the same. The seller is insisting that no forfeiture or cancellation clause should be included in the said agreement. So I wanted to know whether including a forfeiture clause in the sale agreement is necessary or not?
It is always better to include a forfeiture or cancelation clause in the agreement to sale in order to avoid unnecessary legal problems in future.
The agreement for sale should mention the conditions when the said agreement will automatically be termed and treated as cancelled in case of any default in complying with the terms and conditions of the agreement for sale by either of the parties. In case of default, either party can send a letter to the other party cancelling the said agreement as per the cancellation clause of the agreement.
It is always best to hire a lawyer for drafting of such legal documents, where sale or purchase of property is concerned, in order to avoid any kind of discrepancies and future hardships which could put your hard earned money at stake.
The agreement for sale should mention the conditions when the said agreement will automatically be termed and treated as cancelled in case of any default in complying with the terms and conditions of the agreement for sale by either of the parties. In case of default, either party can send a letter to the other party cancelling the said agreement as per the cancellation clause of the agreement.
It is always best to hire a lawyer for drafting of such legal documents, where sale or purchase of property is concerned, in order to avoid any kind of discrepancies and future hardships which could put your hard earned money at stake.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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