Tenant Eviction - Rental and Sale Agreement Signed but Expired
2 weeks ago
We received a purchase proposal for our flat. However, the tenants could not finance the purchase at that point of time. It was agreed through a contract that they will pay an advance of 5L, and stay in the flat for a rent of 10k per month for a period of 6 months. At the end of 6 months, they shall purchase the flat.
Right now, the contract period of 6 months expired a month ago. Until now we were not living in the same building but we had to shift here, and we are facing several difficulties from them. The difficulties are mostly about shared water resources.
I would like to know, since the contract is expired and the contract terms of purchasing the apartment has not been fulfilled yet, are we legally correct to proceed to ask them to evacuate?
To add a note - we are all aware about the contract expiry. Tenants have told us that they are ready to purchase in 2 weeks time. But we fear that problems may escalate once they become owners from tenants.
A rental agreement or agreement to sell does not grant ownership rights to a tenant or buyer. When a rental agreement expires, the landlord can request the tenant to vacate the premises. Similarly, if an agreement to sell includes clauses allowing cancellation due to non-payment by the buyer within a specified time, the seller can cancel the agreement and refund the advance after deducting a certain percentage. If there are no such clauses, the buyer may file a suit for specific performance in civil court to enforce the agreement's terms.
Neither a rent agreement nor an agreement to sell confer any ownership right to a tenant or a buyer. On the expiry of the rent agreement, you can ask the tenant to vacate the rented premises for non-renewal of the rent agreement. As against advance made against the agreement to sell, if there is any clause specifying that if the buyer fails to pay the balance consideration money by the stipulated time, the owner has the right to cancel the agreement to sell and refund the earnest/advance after deduction of certain percentage of that money to cover up the financial loss on cancellation of the agreement, then serving a legal notice to the tenant/buyer, you can cancel the agreement to sell and refunding the balance money to the buyer. In case there are no such terms or conditions stipulated in the ATS, then the buyer may file suit for specific performance against you before the Civil Court claiming registration of the sale deed in favour of the buyer on payment of balance consideration money as per Agreement to Sell(ATS). Reach out to an Advocate for guidance and steps.
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