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Q.

What Happens if Seller Refuses to Execute Sale Deed?

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Here’s what happens if seller refuses to execute sale deed,

  • If a seller refuses to execute a sale deed after signing an agreement to sell, it amounts to a breach of contract under Indian property law, and the buyer is not left helpless.

  • The most direct legal remedy available is to file a civil suit for specific performance under the Specific Relief Act, where the court can compel the seller to complete the transaction as originally agreed.

  • This means the court can legally order the seller to sign and register the sale deed, and in some cases, even authorize a court officer to execute the deed on behalf of the seller if they continue to refuse.

  • Before initiating legal action, the buyer typically sends a legal notice demanding execution within a specified time; if ignored, the suit follows.

  • Additionally, the buyer can seek an interim injunction to restrain the seller from selling the property to a third party during the pendency of the case, protecting their interest in the property.

  • If the seller has already transferred the property to someone else with knowledge of the prior agreement, courts can still enforce the original contract against such subsequent buyers.

  • Alternatively, if the buyer no longer wishes to proceed, they may claim a refund of the advance amount along with compensation or damages for losses suffered.

  • However, courts will grant relief only if the buyer proves they were ready and willing to fulfill their part of the contract, such as paying the balance consideration on time.

I hope this helps!

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