Cancellation of registered agreement for sale of property

*Cancellation of registered agreement for sale of property*

1) If you want to cancel the agreement and don't want to claim any damages, there is no need to go for any legal action. 

2) There would be a forfeiture clause in the agreement which would give a right to the vendor to forfeit the token money in case of breach by the buyer. 

3) This is in addition to the regular remedy available to the parties through a suit of specific performance of the agreement. 

4) There is no need to go for cancellation of agreement, if the agreement itself provides the time period for performance of the contract. 

5) In such cases time is essence of contract. If you are still keen on some legal document, you can file a suit for declaration of the agreement having become cancelled. 

6) You can also publish a public notice in the local newspaper.

*Procedure*

1. The maximum time for the Agreement of Sale to be valid is 3 years.

2. Since the 3 year period is over, there is no need for you to wait for the purchaser, who is dodging you.

3. Convince the buyer to sign in the Deed of Cancellation which is to be registered in the Sub-Registrar's Office and offer to return his advance money which he had paid you thereby you can start the transaction afresh with a different buyer.

4. File a case for specific performance of the Agreement of Sale against the dodging purchaser in the competent court.

5. Since the legal notice has already been served on the purchaser there is no point to do it again, but a Public Notice can be a good option.

Answer these questions for yourself:

1. Was there any clause in the said agreement stating that the agreement will be automatically treated as cancelled if the buyer fails to pay the balance amount within the specified period?

2. Was there any clause mentioning what will be done with the advance amount received in case the agreement is cancelled for non receipt of payment of the balance amount from the proposed buyer?

3. If no, then you are required to cancel the agreement and refund the amount you have received from him as advance (in absence of any forfeiture clause).

4. If you have his bank account number then it will be prudent on your part to RTGS the said amount to his account since he may not agree to accept the refund through DD.

5. If you do not have his Bank account number, send him a letter enclosing a crossed cheque of the said advance amount towards refund of the advance amount paid by him after cancellation of the agreement terms of which he has not complied with.

6. Since it is the agreement which has been registered , you should not worry at all as agreement does not covey title of the property which is done through registered deed of conveyance.