Terms of agreement a vital factor

The rights and obligations of an owner and the tenant are determined as per the terms of the agreement they sign, says senior advocate K. Ravinder Reddi.

What options are available for an aggrieved party when the other refuses to honour a deal in matters of property? We are interested in a house that was up for sale and after negotiations settled for Rs.42 lakh. An advance of Rs.4 lakh was duly paid following a written agreement and it was then agreed that the rest would be paid within three months to close the deal and take occupancy.

The deadline is approaching and we are in the process of raising the necessary amount for the property. Meanwhile, the owner has contacted us and demanded that we pay Rs.3 lakh more than what was actually decided. Else, he wants to return the advance and sell it to others who are willing to pay Rs.45 lakh.

Since an agreement is in place and we are willing to honour it before the agreed date, can we approach the matter legally?

R.Rameshwara Rao.

You are entitled to seek specific performance of the agreement entered into with the owner. The terms of the agreement are important as they reflect the intention of the parties and duties and obligations of the respective parties. Since your question indicates with regard to the time of agreement, the other clauses of the agreement should also be examined for giving proper advice. The rights and obligations of the parties are determined as per the terms of the agreement.

Last year we had given the first floor of our home for rent to a family and an oral agreement was reached for an annual revision of the rental. The family has been nice to us and did not create any problems in this one year. But now, when we asked for a revision of the rental and sought to hike it by 5 per cent, they are refusing. They argue that nothing of that sort was agreed upon and that no agreement on paper exists.

Fact is that we did not enter into any written agreement and this is to our disadvantage. When we suggested that we have an agreement now, they are delaying it. As a landlord, can I now insist them on entering into a written agreement? Is there a way for me to seek a hike in the rental in absence of a written agreement?

Mohd.Yaseen

You did not mention the amount of rent and the age of the building.

The quantum of rent and age of the building are the criteria to approach appropriate forum in case of a dispute by the landlord. It is advisable to have a written agreement in respect of a tenancy since it binds both the parties with regard to the terms agreed upon.

In case of an oral agreement, it becomes word against word. You can demand the tenant to enter into an agreement. You are advised to consult a legal practitioner in solving your problem.