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What is the time limit for a sale agreement? What is the agreement time period, and what is the agre


25-Jul-2024 (In Property Law)
Greetings, we put our site up for sale, and a buyer made an agreement with a ₹5 lakh advance on a ₹200 stamp paper. The total consideration was ₹24 lakhs, to be settled within three months at the time of property registration. He has paid ₹21 lakhs so far, but two cheques bounced. However, he has not registered the property in his name, and ₹3 lakhs is still pending. It has been 18 months, and the agreement states that if I fail to register the property within three months, I must pay double the amount received. If he fails to register, his paid amount will be forfeited. Kindly advise.
Answers (4)

Answer #1
121 votes

In India, a sale agreement is generally valid for three years from the date it is executed, as per the Limitation Act, 1963. This applies whether the agreement is registered or unregistered. However, if the agreement contains a specific clause that sets a different timeline (like requiring registration within three months), then that clause takes precedence.

Essentially, if no other time frame is mentioned, you have three years to take legal action, such as filing a suit for specific performance if the seller backs out.

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Advocate Chikirsha Mohanty

Adv. Chikirsha Mohanty

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Answer #2
968 votes
Sir, The as you informed that the agreement for sale of property was done and also you received a sum of Rs.21 lakhs. You are not mentioned the payment on the Agreement of Sale consideration . Any how he had made part payment towards the sale consideration. As you told the agreement prescribed the time limit. Here you have two option. One, you can immediately issue a notice under 138 of the negotiable instrument Act and also you also issue notice under specif relief act and request him to registered the property by paying the remaining balance of amount. Please proceed immediately. Don't make delay.
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Advocate M Lakshmikanth Arya

Adv. M Lakshmikanth Arya

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Answer #3
974 votes
sir, normally limitation period regarding sale agreement is three years from the date mentioned in the agreement condition. but you are in safe stand you may give legal notice and accordingly to do so.
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Advocate LP Mutaguppi

Adv. LP Mutaguppi

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Answer #4
815 votes
the agreement mentions time limit, say, the buyer has to pay the remainder price within stipulated time, the buyer has to pay the remainder and conclude the contract. If the buyer does not pay the amount within specified period , the seller has option to rescind the agreement by giving one month's notice. If however buyer does not pay within stipulated period and the seller does not take any action, it means he has acquisced in this and has to settle for the price while entering in to agreement. Law does not help laggards!
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Advocate Vedashree A

Adv. Vedashree A

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