The Letter of Cancellation of House Purchase is a crucial document in Indian real estate transactions when either the buyer or seller needs to terminate a property purchase agreement. This document is typically used when circumstances prevent the completion of a property transaction, such as failure to secure financing, discovery of property defects, or breach of agreement terms. The letter must comply with Indian legal requirements, particularly the Transfer of Property Act 1882 and the Real Estate (Regulation and Development) Act 2016. It should clearly state the grounds for cancellation, reference the original purchase agreement, detail any refund requirements, and include supporting documentation. The document serves as official evidence of the cancellation intention and can be crucial for legal proceedings or refund claims.
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1. Sender's Details: Complete name and address of the party initiating the cancellation
2. Date: Current date of the cancellation letter
3. Recipient's Details: Complete name and address of the other party involved in the purchase agreement
4. Subject Line: Clear indication that this is a cancellation notice for the specific property purchase
5. Reference Details: Original purchase agreement details including date and property description
6. Cancellation Statement: Clear and unambiguous statement of intention to cancel the purchase
7. Grounds for Cancellation: Specific reasons for the cancellation with reference to relevant contract clauses or circumstances
8. Refund Request: Details of any advance payments made and request for refund
9. Timeline: Expected timeline for the cancellation process and refund
10. Closing: Professional closing statement with signature block
1. Mutual Agreement Statement: To be included when the cancellation is by mutual consent of both parties
2. Legal Grounds: Detailed reference to specific laws or regulations when cancellation is based on legal violations
3. Dispute Details: Description of any existing disputes or issues, if the cancellation is due to unresolved conflicts
4. Without Prejudice Statement: To be included when preserving legal rights for future action
5. Settlement Terms: Specific terms of settlement if any negotiated conditions are part of the cancellation
1. Original Purchase Agreement: Copy of the original purchase agreement being cancelled
2. Payment Receipts: Copies of all payment receipts and transaction records
3. Property Documents: Relevant property papers or documentation referenced in the cancellation
4. Correspondence History: Copies of relevant previous communications regarding the cancellation
5. Inspection Reports: If cancellation is due to property defects, relevant inspection reports
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