My friends Dhriti and Sumit, booked an apartment with a builder in Bangalore. Before they got possession of the flat, Dhriti got a great opportunity to move to the USA permanently for work and Sumit decided to pursue his higher studies in the UK. They didn't want to have any assets or responsibilities back in India since their transfer would be for an indeterminate period of time. Hence, they desired to terminate their agreement with the builder, but they were unsure of the contract cancellation clause.
Draft and get your sale agreement delivered to your home via NoBrokerIs cancellation clause added to property deal?
One of the most basic types of agreements in the real estate industry is the rental or lease agreement. All property contracts typically include a termination provision. The cancellation clause in this agreement is typically governed by a notice requirement, i.e., the minimum amount of time that either party must provide to the other party to terminate this agreement.
Implementation of sale agreement cancellation clause from buyer’s end:A buyer has every right to revoke an agreement to sale for the following reasons;
The project is running far behind schedule.
When an exigency, such as a death, prevents him/her from being able to honour the contract.
Despite this, there is always a fee associated with cancelling the sale agreement. Typically, it still represents a proportion of the cost of the reservation.
Implementation of sale agreement cancellation clause from seller’s end:If the seller is to blame for the delay, the buyer is supposed to get compensation in accordance with the terms of the contract, which could range from the payment of penalty interest to a notional rent, etc.
The offended party has the right to take legal action if the contract's provisions are not upheld by either party.
Where there is no specified clause both parties can still cancel a contract.
A buyer may assert that the contract cannot be upheld for legitimate grounds. The cancellation, however, might only be permitted with a fee.
Similarly, the buyer must be fairly rewarded when the seller breaches a contract.
Before conducting a new sale of the property in any of these scenarios, a cancellation deed must be registered if the agreement to sale has already been recorded.
As you can never predict when you might need to cancel a property deal. So it is always good to ensure that your agreement has a contract cancellation clause. I hope this helps:)
Read More:
Is Sale Agreement Required For Home Loan? What is the Unregistered Sale Agreement Validity Period? Can a registered sale agreement be cancelled?Your Feedback Matters! How was this Answer?
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Is Cancellation Clause Added to Property Deal?
pratik
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2 Year
2023-04-18T12:17:01+00:00 2023-04-18T12:22:31+00:00Comment
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