1. Include Time-Bound Clauses in the Sale Agreement
To protect their interests, sellers should include specific timelines and milestones in the sale agreement, such as:
- Deadline for payment of token or advance amount
- Schedule for documentation submission and due diligence
- Defined date for final registration or possession handover
These contractual clauses allow sellers to legally enforce performance and provide clarity on expectations.
2. Use Penalty and Compensation Provisions
Agreements can incorporate penalty clauses for delays caused by the buyer. These may include:
- Per-day penalty charges for exceeding agreed timelines
- Interest on delayed payments
- Forfeiture of advance or earnest money in case of unjustified non-performance
Such provisions discourage casual delays and compensate the seller for time lost.
3. Set Expiry Dates for Offers or Approvals
Sellers can include validity periods for:
- Offered price or negotiated terms
- Document verification or title clearances
- Government NOCs or permissions obtained in advance
Once expired, the seller reserves the right to renegotiate or exit the agreement.
4. Send Formal Notices and Reminders
If the buyer defaults on agreed timelines, the seller should issue:
- Written reminders or legal notices highlighting delays
- A defined grace period to rectify the breach
- Documentation of all communication for legal record
This maintains transparency and supports potential legal enforcement if needed.
5. Exercise the Right to Cancel the Agreement
In cases of prolonged or unjustified delay, the seller may:
- Cancel the sale agreement as per contract terms
- Retain the earnest money (if contractually permitted)
- Seek alternate buyers to avoid financial or market opportunity loss
Cancellation should be done legally and formally documented through a cancellation deed or legal notice.
6. Negotiate Revised Terms (If Mutually Beneficial)
If the buyer communicates genuine reasons and shows continued interest, sellers may:
- Renegotiate payment deadlines or registration dates
- Include additional safeguards or revised penalties
- Seek partial payments as proof of commitment
Flexibility can preserve the deal without compromising the seller’s rights.
7. Seek Mediation or Legal Recourse
If delays escalate into a dispute, sellers can approach:
- Mediators or real estate legal advisors for a settlement
- Consumer courts or civil courts for specific performance or compensation
- File for cancellation and injunction against buyer claims
This ensures the seller’s legal rights are upheld and provides formal resolution options.
