How to Cancel an Agreement to Sell: A Step-By-Step Guide

Selling your property can be an exciting and stressful experience. But what if you change your mind and want to cancel the agreement to sell? It`s possible, but you need to understand the legal implications and follow the correct procedure. In this article, we`ll explain how to cancel an agreement to sell in India.

Step 1: Check the terms of the agreement

Before you take any action, you should read the agreement to sell carefully. Look for any clauses that relate to cancellation, termination, or revocation. Some agreements may allow you to cancel the sale within a certain timeframe, without any penalty or compensation. Other agreements may require you to pay a penalty or forfeit the earnest money deposit (EMD) if you cancel the sale. Make note of any deadlines or conditions that apply.

Step 2: Communicate your decision in writing

Once you have decided to cancel the agreement, you should notify the buyer in writing. A verbal communication or a text message is not sufficient. Your cancellation letter should clearly state your name, address, and the details of the property. It should also mention the date of the agreement, the reasons for cancellation, and any relevant clauses in the agreement. Keep a copy of the letter for your records.

Step 3: Request for a refund of the EMD

If you have paid an EMD to the buyer, you can request for a refund in your cancellation letter. The EMD is usually 10% of the total sale price, and it serves as a token of your intention to sell the property. If you cancel the sale, the buyer may deduct a certain amount from the EMD as compensation for breach of contract. However, if you have cancelled the sale within the agreed timeframe and without any fault of yours, you are entitled to a full refund of the EMD.

Step 4: Seek legal advice if necessary

If there is a dispute regarding the cancellation of the agreement, you may need to seek legal advice. You can consult a lawyer who specializes in property law to understand your rights and options. The lawyer can also help you negotiate with the buyer and avoid any legal complications.

In conclusion, cancelling an agreement to sell can be a complex and sensitive issue. It`s important to understand the legal implications and follow the correct procedure to avoid any disputes or financial losses. By checking the agreement terms, communicating your decision in writing, requesting for a refund of the EMD, and seeking legal advice if necessary, you can cancel the sale with peace of mind.