If you have signed an agreement for sale but have decided to cancel it, it is important to follow the correct procedures to avoid any legal complications. Here are the steps to cancel a registered agreement for sale:
1. Review the agreement: The first step is to carefully review the agreement for sale you signed. Check for any clauses related to cancellation or termination. This will give you an idea of the terms and conditions that apply to canceling the agreement.
2. Inform the other party: Once you have decided to cancel the agreement, notify the other party in writing. Make sure to mention the reason for cancellation and any relevant clauses in the agreement.
3. Mutual agreement: If both parties agree to cancel the agreement, you can execute a mutual cancellation deed. This deed is a legal document signed by both parties that cancels the agreement for sale.
4. Refund of money: If any advance payment was made while signing the agreement, it needs to be refunded to the other party. Make sure to mention the details of the refund in the mutual cancellation deed.
5. Register the cancellation deed: The mutual cancellation deed needs to be registered with the Sub-Registrar of Assurances in the local jurisdiction where the property is located. The deed needs to be signed by both parties in the presence of two witnesses. Once the deed is registered, a copy of it needs to be submitted to the relevant authorities.
6. No objection certificate: After the cancellation deed is registered, you need to obtain a no-objection certificate (NOC) from the bank that provided the loan (if applicable). This certificate confirms that there are no pending dues related to the property.
7. Obtain a copy of the canceled agreement: Once all the above steps are completed, make sure to obtain a copy of the canceled agreement for your records.
In conclusion, canceling a registered agreement for sale involves a series of legal procedures. It is important to follow the correct steps to avoid any legal complications. If you are unsure about any of the procedures, it is advisable to consult a legal expert.
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