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We enter into various agreements, contracts and memorandum of understanding before pursuing any business or service arrangement. To be precise a sale agreement defines and confines the role of either party to avoid any future legal course of action due to breach of the agreement. In this article, we look to shed some light on the cancellation clauses in various forms of real estate/ contracts /documents.
Rental or Lease Agreement is one of the simplest forms of an agreement in the real estate sector. Generally, all kinds of rent or lease agreements come with a cancellation clause which is generally bounded into a notice period, i.e., the minimum time that should be given by either party to the opposite party if they wish to cancel this contract.
In case, the notice period is impossible to serve than an appropriate monetary compensation to be paid which is also mentioned in the document.
It is seen mostly rental agreements enter for 11 months and thereby is exempted from registration, mutual consent is what is required for cancellation of the rental agreement.
A lease agreement made for a longer duration is also cancelled by serving a notice period. However, if the lease deed has been registered, then Registration of the Cancellation Deed too, needs to be registered.
Cancellation of any kind of agreement may look simple enough. Nonetheless, transactions involving buying or selling of real estate property is not so easy to cancel.
So, before we proceed, we would like to remind you that an agreement to sell and a sale deed are not the same. Agreement to Sale is a document /contract signed between the seller and the buyer. It also signifies the intent of the buyer to buy the property in question at a certain agreed sum of money and the seller agrees to sell the same and also gives details about the other deliverables and their timelines for completion of delivery.
Clauses for Cancellation of a Sale Agreement
When it comes to the cancellation of an agreement to sell, there are various scenarios possible.
Are you looking around to know more the process sign up with Online Legal India™? We have a body of established lawyer who will carefully resolve every dispute looking at the minute details. They excel in every service from issuing to promptly send a befittingly well-laid-out legal notice against the defaulter it could be the buyer or seller.