Can a registered sale agreement be cancelled?

Registration of sale deed is done to allow a person or the buyer to get the sole ownership of the property. It needs to be signed by both seller and the buyer to become legally valid. I was not much aware of it until we heard from our manager that the sale deed got cancelled for the property where our new office was going to be launched. We were discussing why it happened and also can sale deed be cancelled anytime or not. These things can be helpful to anyone in the future and so you all must remain aware of them. I also came to know about the latest judgments on cancellation of sale deed. Many of you might be having the same query so here you will get its answer.

What are the grounds for cancellation of sale deed?

Both the buyer and seller can cancel the sale agreement if there is a valid reason for it. Here are some of the major reasons why the sale deed can be cancelled.

The seller can cancel the sale agreement if

• The buyer fails to pay the money within the stipulated time

• The buyer makes the rest of the payment only if he/she is satisfied with the property title

• The seller might have personal reasons and can also cancel the deed. In such a case he/she has to send a legal notice to the buyer informing him/her about it

The buyer can cancel the sale agreement if

• The seller cancels the deal at the last moment

• The buyer can also send a legal notice about the same.

However, both the buyer and seller need to seek damages for cancelling the sale deed. Both can cancel the sale deed anytime but take the necessary steps as well.

However note that as per the latest judgments on cancellation of sale deed, it has been decided that once a deed of conveyance gets accepted by the transferee, the Registrar or sub-registrar will have no power to accept a deed of cancellation to cancel it. This decision was taken by a full Bench of the Madras High Court last year.

What is the procedure for cancellation of registered sale deed?

The process of cancelling a registered sale deed is not very hard. It can be cancelled unilaterally by filing a petition before the competent court. One of the parties can file the petition and state the reasons behind it. If both the buyer and seller agree on the cancellation, it will be done jointly before the competent officer.

I have learnt the latest judgments on cancellation of sale deed from this answer.

I understood what the cancellation of a sale deed meant when my sister told me that she got her sale deed cancelled for a flat that she was buying. She explained to me that cancellation of sale deed means nothing but revocation or cancellation of the sale or purchase of property. This cancellation can happen if one of both parties involved in the transaction of property is unsatisfied with the deal and wishes to claim it in a court of law. I will tell you how to cancel registered agreement of sale.

Cancellation of registered sale agreement

If you wish to cancel the sale deed, you need to get an order regarding the same from the Civil Court and show it to the Registrar who takes the cancellation process forward. You need to provide a genuine reason for the cancellation of sale deed. It is on the basis of this reason, that the authorities decide about cancelling a sale deed.

Sections 31 to 33 of the Specific Relief Act, 1963 talk about the cancellation of a sale deed. The cancellation of sale deed takes place within 3 years from the registration date of the sale deed.

How to cancel registered sale agreement?

• Sale deed cancellation can only be done if both parties involved in the transaction have given their consent.

• The office where the registration of the sale deed took place, would get a copy of the court’s decree. The officer of that office will be the one recording all the details of the sale deed cancellation.

• It is important that for the cancellation of the sale deed, all of the important details stating the ownership of the property are shown accurately. This will ensure that after the cancellation of the sale deed the new owner will bear the responsibility of property mutation.

I hope now you understand how to cancel registered agreement of sale.

The

cancellation of sale agreement

  depends on certain circumstances. Here are some common scenarios where a registered sale agreement may be canceled:

What are the Grounds for Cancellation of Sale Agreement?

• If both the buyer and seller mutually agree to cancel the sale agreement, they can do so by executing a cancellation deed. This deed must be registered with the Sub-Registrar of Assurances.

• If either party violates the terms and conditions specified in the sale agreement, the other party may have grounds to cancel the agreement. For example, if the seller fails to deliver the property as promised or if the buyer fails to make the payment as per the agreed-upon schedule.

• If either party engaged in fraud or misrepresentation during the sale agreement process, the aggrieved party may seek cancellation of the agreement through legal means.

• If the sale agreement is found to be legally invalid due to reasons such as lack of capacity of either party, coercion, undue influence, or mistake, it can be canceled by approaching the appropriate legal authorities.

• In some cases, a court may order the cancellation of a registered sale agreement based on a lawsuit filed by one of the parties. 

This is all about can a registered sale deed be challenged or not.

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