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Rahul Simran (NA)     26 October 2020

Agreement on plain paper

I and my brother signed a plain paper stating that we wish to sell our mother's property, after consulting with parents over phone. This paper was signed by buyer, myself and my brother and we took a token amount from the buyer. Next day after understanding the situation, my mother does not wish to sell due to emotional reasons. We have expressed our apologies politely to broker and seller that we want to withdraw the sale and return the token money to the buyer. But buyer is refusing to meet us and threatening court action.

  • What is the legal value of plain paper agreement that is NOT signed by the property owner?
  • Is it right to threaten legal action for withdrawing out of a property agreement signed on plain paper?
  • We brothers never claimed to be the owner of the property. Is the broker responsible for not informing both parties that verbal/written consent from property owner (my mother) is mandatory, and gave false hopes to buyer? 
  • What can we do to protect our rights? We have full intention of returning the token money, but the buyer is refusing to meet us.


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 6 Replies

Suri.Sravan Kumar (senior)     26 October 2020

pl share the document for advise.

Rahul Simran (NA)     27 October 2020

Not advisable to share the document on a public platform

P. Venu (Advocate)     27 October 2020

The agreement is of no legal value. Admittedly, the property belongs to the mother. Thr sons have no standing to enter into such an agreement. 

Rahul Simran (NA)     27 November 2020

Originally posted by : P. Venu
The agreement is of no legal value. Admittedly, the property belongs to the mother. Thr sons have no standing to enter into such an agreement. 

We have full intention of returning the token money, but the broker is demanding that we pay double the token amount in return, or buyer will take legal route. 

Please advise what steps we can we do to end this uncomfortable situation?

P. Venu (Advocate)     27 November 2020

Try to settle the issue with the buyer by offering reasonable interest as well. He will not get double the token money even if he approaches the Court.

Rahul Simran (NA)     27 November 2020

Can you advise what is a 'reasonable' interest rate? Bank interest rate (4%) or some round figure like 10% of token amount?

Thanks in advance. 


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