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UI have a buyer for my house in bengaluru for 1.5 crores. Is a signed agreement needed between buyer and seller prior to registration? I am concerned that the seller will not show up on day of registration and tie up the sale to someone else in court, saying there is an agreement (and maybe try to get the price reduced or sell house to someone else. He will give an advance of 25k which I will refund if he backs out.
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ULawyer here!
An Agreement to Sale may be executed to establish the mutual commitments of the parties and safeguard their respective rights. The agreement shall stipulate a definitive timeline for the execution and registration of the Sale Deed, along with provisions for penalties in the event of the buyer’s failure to appear. All your concerns, along with the terms and conditions governing the transaction, may be expressly set forth to ensure compliance and avoid unnecessary conflict.
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UOne question. I have heard of a scam where an agreement is signed by both parties and even with an expiry date, buyer will not show up for registration but will then file a court case to prevent sale of house to another buyer. This is to cause delays and force buyer to reduce price. Does this happen?
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UThis can and does happen. You can include strong clauses to protect yourself against this.
The agreement should explicitly state that time is of the essence, and failure to complete the transaction within the stipulated period shall result in the automatic cancellation of the agreement. In such an event, a specified portion or the entire advance amount shall be forfeited at the seller’s discretion.
Include that the buyer shall have no right to seek specific performance of the agreement, and their claim, if any, shall be strictly limited to the refund of the advance amount. The buyer shall also indemnify and hold the seller harmless from any legal proceedings, claims, or disputes arising from the agreement, including but not limited to frivolous litigation aimed at delaying the sale or coercing renegotiation of terms. Also get it registered.
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UYes , all this is so that we as seller will win the case.
But purpose of the buyer is delay and not to win. Even with a strong agreement, if the buyer just files the case, won’t this cause months of delay before the case is heard?
And until case is heard we cannot sell to anyone else.
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UAnyone intending to delay a land sale can file a frivolous lawsuit with false claims, even in the absence of a formal agreement, and that alone may be sufficient to cause legal complications. That’s altogether another issue.
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