A Guide to Cancel Sale Deed After Property Registration

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The sale deed, which completes the transfer of property title from the seller to the buyer, is a crucial document when purchasing properties in India. In some situations, however, it becomes essential to cancel the sale deed. If you want to cancel your selling deed, you must understand this procedure. This article will help you do that.  

When Can You Cancel A Sale Deed?

A sale deed may be canceled after it has been first registered for a number of valid reasons. Some of the reasons are:

• The transaction may be canceled if both the buyer and the seller decide not to proceed.
• The sale deed may be canceled if either the buyer or the seller violates the terms of the agreement.
• The sale deed may be canceled if either party commits fraud.
• The sale deed may be canceled if it is determined that one of the parties is unable to carry out the agreement to transfer property ownership.
• The sale deed may be revoked if the encumbrance certificate indicates that the property’s title is unclear.
• One of the main grounds for requesting the revocation of a sale deed is misrepresentation of facts and persons.
• The sale deed document needs to be canceled if it contains significant errors. To correct minor errors in the deed, a rectification deed might be used.
• Any party that feels pressured into making a purchase has the right to get out of the deal. Nevertheless, they will need to provide proof of the sale deed cancelation fee.
• When a sale deed is created with the specifics of the law in mind, it is considered binding. Should an overlook occur, such a contract will not be enforceable. In this context, the phrases “void contract” and “voidable contract” are relevant.
• In order to engage into a contract, the parties must be able to do so. In the event that they are incompetent, the sale shall be nullified and invalid.

Steps to Cancel a Sale Deed

Cancellation of a sale deed involves several steps, each requiring careful attention to detail:

1. In order to revoke the sale deed, both parties must consent. The easiest way to get a selling deed is to do this.
2. If necessary, a cancellation deed that includes the reasons for the cancellation and mutual permission must be created.
3. The cancellation deed has to be registered with the sub-registrar where the original sale deed was recorded, and it needs to be signed on a stamp paper of suitable value.
4. The party that has been wronged in a fraud or misrepresentation case shall notify the other party in writing that they want to revoke the sale deed.
5. If both parties cannot agree, a civil lawsuit must be brought in the proper court to get the sale deed revoked.

Legal Procedure to Cancel A Sale Deed

A sale deed cancellation is a complicated legal procedure that must be meticulously followed. The following steps need be taken in order to rescind the recorded sale deed:

• The first and foremost steps is for the individual requesting cancellation to initiate a civil court complaint. Depending on the value of the property, they will be required to pay a charge.
• The judge will give each party an opportunity to present their case. After reviewing the paperwork, the court will determine if there is a legitimate grounds for cancellation, such as fraud or error. If this is the case, the court issues an order permitting cancellation.
• The original selling deed’s registration office receives a copy of this court order. An official will record the cancellation of the deed in their records at this point. They write the date and court order number. “Cancelled” is stamped on the original deed sheets.
• To reflect the new ownership, it updates all property records. Property owners are listed in updated municipal records. The updated data is required by other government organizations that deal with taxes or services.
• The prior sale is legally deemed void once registration is complete. To formally return ownership, the owners may sign a new deed prior to the canceled sale. On this, both parties must agree.
• The court may require the party at fault to pay damages and dues if cancellation occurs due to nonpayment. All benefits obtained as a result of the void deed have to be reimbursed or reversed.

To safeguard all legal rights and ensure that official records reflect the court’s ruling, a thorough procedure is in place. It seeks to return things to their original state and intent in accordance with the justice served. In order to prevent future disagreements, proper documentation is essential.

Court Fees for Sale Deed Cancellation

If you want to file for a sale deed cancellation, you must pay a court fee up front. That is based upon the property value specified in the deed. Under Article 17(iii) of the Act’s Second Schedule, the minimum set court charge is Rs. 19.50. To determine the charge amount, property valuation documents are helpful. Following document review, the fee is collected by the court registry. The cancelation case is then assigned a number and accepted. A hearing won’t be scheduled if payment isn’t made in full. The court may later mandate that the opposing party pay the fee if the petition is successful. However, in order to try to cancel the property sale deed, the petitioner must first pay to enter the court system.

Legal Implications to Cancel a Sale Deed

To maintain the fairness and justice of the procedure, specific legal rules regulate the cancellation of a sale deed. The cancellation deed is the main piece of legal documentation used for this purpose.

1. Section 31 of the Specific Relief Act, 1963: If a written contract, including a sale deed, is defective or voidable, a party may request its cancellation.
2. Registration Act, 1908: Only a registered cancellation deed may be executed to revoke a sale deed that has already been registered.
3. The Indian Contract Act of 1872 has provisions that permit contracts to be canceled on the grounds of fraud, undue influence, misrepresentation, or error.
4. Civil Procedure Code (CPC), 1908: A civil court may hear a suit to revoke a sale deed, and it will make a decision based on the facts and the law.

Limitations on the Cancellation of Sale Deed

A deed’s cancellation is subject to specific legal restrictions. To make sure the procedure is legitimate and enforceable, these need to be taken into account.

• Only justifiable grounds, such fraud, deception, or contract violations, allow cancellation. Any cancelation without a good reason will be void.
• There are some cancellations that need both parties’ consent. In the event that one side declines, the procedure gets more intricate and can even need legal action.
• It is usually required to seek a cancellation within a fair amount of time. Cancellation grounds may be weakened by delays.
• It might not be feasible to cancel if the property has third-party rights or has already been transferred to another party unless all parties are involved.

The cancelation needs to be authorized by the court or local sub-registrar. Adherence to property rules and equity are guaranteed by legal supervision. 

Frequently Asked Questions

1. How long is it possible to cancel a sale deed?

It is possible to revoke a sale deed within three years of its registration. This cannot be done after that time period has passed.

2. Can I cancel a sale agreement after signing the registration?

Yes, you can cancel a sale agreement after signing the registration deed. There are various valid reasons for cancellation of sale deed.

3. What are the evidences required to cancel a sale deed?

Evidence of fraud, proof of misrepresentation, breach of contract, or letters of mutual agreement are necessary in order to revoke a selling deed.