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Kagaznama

Mutual Rescission of an Agreement to Sell

At a glance

Price
Free
Stamp duty
A deed rescinding an agreement to sell, transferring nothing, is a cancellation instrument under Article 17 — fixed sum, not ad valorem, brought within the article by two witnesses' attestation.
Registration
Registering the rescission is prudent, maybe required, if the original was registered — unregistered originals need none.
Witnesses
Two witnesses are prudent for a substantive rescission agreement.

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Also called

  • mutual cancellation of agreement to sell
  • sale agreement rescission
  • property agreement termination by consent

When you need it

For when buyer and seller both want to end an agreement to sell before the sale deed completes — since it's executory, rescission unwinds the contractual rights: identify the source agreement, the reason, return buyer payments, end any possession, handle originals, and specify surviving claims. Per s.54 TPA, a sale contract creates no property interest by itself.

Read more

Link release to actual restoration of money, not a blanket no-claim clause.

Whether you can fill this in here

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You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A deed rescinding an agreement to sell, transferring nothing, is a cancellation instrument under Article 17 — fixed sum, not ad valorem, brought within the article by two witnesses' attestation. Neither state's table prices it — ask the tehsil or UT Chandigarh Sub-Registrar. If possession is returning, confirm Article 17 still applies. Stamp before signing; unstamped is inadmissible until duty+penalty paid (s.35, s.17).

Registration

Registering the rescission is prudent, maybe required, if the original was registered — unregistered originals need none.

Notarisation

Notarisation does not replace registration where registration is required.

Witnesses

Two witnesses are prudent for a substantive rescission agreement.

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Sample preview — placeholder answers, not your data

MUTUAL RESCISSION OF AN AGREEMENT TO SELL

Rescission date: 1 April 2026

Seller: Harpreet Singh, Sector 35, Chandigarh. Buyer: Aarav Sharma, Sector 21, Panchkula.

Property: Plot 118, Sector 35-A, Chandigarh (Plot/land), Residential plot measuring 500 square yards.. Agreement: Agreement to Sell dated 01 August 2026.

Agreed sale consideration: ₹2,50,00,000 (Rupees Two Crore Fifty Lakh only). Buyer payments received: ₹50,00,000 (Rupees Fifty Lakh only).

  1. 1. MUTUAL RESCISSION

Reason: Financing did not proceed. Details: Buyer finance was declined and seller agreed to release buyer.. The parties mutually agree that the identified agreement will not proceed to completion.

  1. 2. REFUND

Refund to buyer: ₹50,00,000 (Rupees Fifty Lakh only) by Bank transfer, reference UTR HDFC260915501, on 2 April 2026.

  1. 3. POSSESSION AND DOCUMENTS

Possession: Buyer never received possession.

Original documents: Each party retains one rescinded original marked cancelled for record.

  1. 4. RELEASE

Release scope: Parties release claims arising solely from the rescinded agreement after refund completion.

The agreement to sell is rescinded between the parties subject to completion of the refund/restoration obligations above. This rescission does not purport to cancel a separate completed registered conveyance.

  1. 5. EXECUTION

 
 
______________________________
Signature
Seller: Harpreet Singh
Place: ____________________
Date: 1 April 2026

 
 
______________________________
Signature
Buyer: Aarav Sharma
Place: ____________________
Date: 1 April 2026

 
 
______________________________
Signature
Witness 1: Neeraj Khanna
Place: ____________________
Date: 1 April 2026

 
 
______________________________
Signature
Witness 2: Simran Kaur
Place: ____________________
Date: 1 April 2026

PERSONAL DATA NOTICE

This notice is given under the Digital Personal Data Protection Act, 2023.

Personal data in this document is collected only to document and complete the parties' mutual rescission of the identified agreement to sell, communicate about that purpose, verify expressly supplied transaction information, and retain an evidentiary record.

The record will be held by Kagaznama and may be shown only to the buyer, seller, promoter/developer, authorised broker, advocate, lender, escrow holder, tax adviser, registering authority or other person directly involved in the stated cancellation, refund or settlement.

If the transaction is abandoned without a completed settlement, personal data will be retained for 90 days from that decision and then erased. If a cancellation, refund or settlement is completed, the record will be retained for that matter plus 12 months, except where a statute requires a longer named retention period.

Questions about this document

Does the Mutual Rescission of an Agreement to Sell need stamp paper or stamp duty in Punjab and Chandigarh?

A deed rescinding an agreement to sell, transferring nothing, is a cancellation instrument under Article 17 — fixed sum, not ad valorem, brought within the article by two witnesses' attestation.

See the full position on stamp duty, registration and witnesses
Does the Mutual Rescission of an Agreement to Sell need registration in Punjab and Chandigarh?

Registering the rescission is prudent, maybe required, if the original was registered — unregistered originals need none.

See the full position on stamp duty, registration and witnesses
What does the Mutual Rescission of an Agreement to Sell cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Mutual Rescission of an Agreement to Sell need witnesses?

Two witnesses are prudent for a substantive rescission agreement.

See the full position on stamp duty, registration and witnesses

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