Cancellation of Unregistered Sale Agreement: What You Need to Know
Sale agreements are a legal binding document that outlines the terms and conditions of a property transaction. When a sale agreement is not registered, it can lead to complications, such as disputes and legal issues.
The registration of a sale agreement is crucial as it serves as proof of ownership of the property in the future. However, situations may arise where the agreement is not registered for various reasons.
If you are in a situation where you need to cancel an unregistered sale agreement, here is what you need to know:
1. Grounds for Cancellation
Cancellation of an unregistered sale agreement can only be conducted on specific grounds. The grounds may vary depending on your jurisdiction, but generally, some of the common grounds include fraud, misrepresentation, coercion, undue influence, mistake, and incapacity.
2. Cancellation by Mutual Consent
If both parties agree to cancel the unregistered sale agreement, it can be done through mutual consent. However, it is essential to ensure that the mutual consent is in writing and signed by both parties.
3. Cancellation through Court
Cancellation can also be sought through the court of law. The party seeking cancellation may file a suit in the court and provide evidence to support the grounds for cancellation. A court order can then be issued to cancel the unregistered sale agreement.
4. Time Limit
Cancellation of an unregistered sale agreement has a time limit. The time limit may vary depending on your jurisdiction, but generally, it is within three years from the date of the agreement.
5. Consequences of Cancellation
Cancellation of an unregistered sale agreement may have consequences on both parties. The buyer may lose any money paid towards the property, while the seller may face legal consequences for breach of contract.
In conclusion, it is crucial to ensure that your sale agreement is registered to avoid complications in the future. However, if you do find yourself in a situation where you need to cancel an unregistered sale agreement, it is essential to consider the grounds for cancellation, the process, and the consequences of cancellation. It is advisable to seek legal advice before taking any legal action.
