When it comes to the sale of property, there are several legal aspects that both the buyer and seller need to consider. One such important aspect is the right of resale in the agreement to sell.
The right of resale is a legal provision that gives the seller the right to resell the property to another buyer without any restrictions. It means that the seller has the right to transfer the ownership of the property to a third party, even if the original buyer has not paid the full amount or has defaulted on the payment.
In the agreement to sell, the right of resale clause is generally mentioned in the terms and conditions section. It specifies the conditions under which the seller can exercise this right. The clause usually states that the seller has the right to resell the property if the buyer fails to make the payment as per the agreed terms and conditions.
This clause is beneficial for the seller as it allows them to recover their money even if the original buyer defaults on the payment. However, it is important to note that the resale should be done at a fair market value to ensure that the original buyer is not unfairly disadvantaged.
As a buyer, it is important to understand the implications of the right of resale clause before signing the agreement to sell. It is advisable to negotiate the terms and conditions of the clause with the seller to ensure that it is fair to both parties.
In conclusion, the right of resale clause in the agreement to sell is an important legal provision that protects the interests of the seller. It is essential for both the buyer and seller to understand the implications of this clause before entering into the agreement to sell. A well-drafted agreement with transparent terms and conditions can help to prevent disputes and ensure a smooth property transaction.