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What is the procedure for cancellation of a sale agreement?
02-Mar-2023 (In Property Law)
I wanted to sell my flat to a friend. The deal was finalized and the sale agreement was drafted. He had paid me a sum of Rs. 20 lakh for the flat before registration of the sale agreement as advance and the balance amount was to be paid within three months of registration of the sale agreement. The sale agreement was registered in September 2016. He has still not paid the balance amount.Is there any provision for cancellation of the sale agreement?
Yes, you can cancel the agreement to sell as the purchaser has failed to comply with the terms and condition of the agreement. The cancellation of an agreement to sell (sale agreement) depends on the terms mentioned in the agreement.In your case, the agreement provides for payment of the balance amount within 3 months, a condition which has been dishonoured by the prospective buyer. Thus, you can proceed to cancel the agreement by issuing a legal notice to him through your lawyer.
However, you have to refund the money paid by the purchaser for booking your flat. Thereafter, you shall be free to sell the property to any one you desire. Do not sell it to anyone else without cancelling the said agreement first.
However, you have to refund the money paid by the purchaser for booking your flat. Thereafter, you shall be free to sell the property to any one you desire. Do not sell it to anyone else without cancelling the said agreement first.
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Adv. Siddhant Sharma
Delhi | 200+ Answers
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Can a seller cancel a sale for no reason?
The bottom line about cancelling contracts
Schorr explains that a seller cannot cancel without a reason. 15 Nov 2022
What to do if seller backs out of contract in India?
If the other party does not complete the sale, either the buyer or seller can seek damages. In the case of a registered contract, both parties must execute a deed cancelling the agreement. Only then can the property be sold to a third party. 10 Mar 2022
What is the latest Judgement on cancellation of sale agreement?
Bombay High Court: Smt. Kusum Hiralal Jain v. M/s. Jain Construction Company, (AIR 2022 BOm 315). The Bombay High Court ruled that a sale agreement can be cancelled when it is executed by a child. 11 Oct 2023
The seller may cancel the agreement in the following circumstances: The buyer does not make payment. Buyers only pay balance if they are satisfied with the title of property. The seller may send a legal notice to the purchaser to cancel the contract and claim damages.
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Adv. Chikirsha Mohanty
Delhi | 200+ AnswersCONTACT NOW
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