Cancellation of Registered Sale Agreement

Cancellation of Registered Sale Agreement: A Comprehensive Guide

A registered sale agreement is a legal document that establishes the transfer of ownership of a property from the seller to the buyer. It is an important document that protects the interests of both the parties involved in the transaction. However, circumstances may arise where one party may want to cancel the sale agreement. This article will provide a comprehensive guide on the cancellation of a registered sale agreement.

Grounds for Cancellation of Registered Sale Agreement:

There are several grounds for cancelling a registered sale agreement. Some of them are as follows:

1. Breach of terms and conditions of the agreement by either party.

2. Discrepancies in the property title such as illegal construction or encumbrances.

3. Non-payment of dues such as taxes, maintenance charges or utility bills.

4. Dispute between the parties over the ownership or possession of the property.

5. Filing of false claims or misrepresentation of facts by either party.

Procedure for Cancellation of Registered Sale Agreement:

If either party intends to cancel the registered sale agreement, they must follow the legal procedure. The procedure may vary depending on the state laws, but the general process is as follows:

1. Notice of Cancellation: The party who wishes to cancel the agreement must serve a notice of cancellation to the other party. The notice should clearly state the reasons for cancellation.

2. Agreement Termination: If both parties agree to cancel the agreement, they can execute a deed of termination. The deed must be registered with the Sub-Registrar of Assurance within four months from the date of execution.

3. Approach the Court: If either party refuses to agree to the cancellation or disputes the reasons stated, the affected party can approach a court of law. The court will hear both parties and decide on the matter.

4. Refund of Amount: If the agreement is cancelled, the amount paid by the buyer to the seller must be refunded. The refund can be claimed through a legal notice or by approaching the court.

Conclusion:

A registered sale agreement is a legal document that binds the parties involved in the sale of a property. However, if either party wishes to cancel the agreement, they must follow the legal procedure. The grounds for cancellation may vary, but the general procedure involves serving a notice of cancellation, agreement termination, approaching the court, and refund of the amount. It is important to seek legal advice before initiating the cancellation process to avoid any legal complications.