Return of token money, procedure thereof
Manish Sinha
(Querist) 24 July 2013
This query is : Resolved
We have an under-construction property for which I brokered a deal.
After mutual consensus, the potential buyer provided me a token money of 25k- Cash and 25k- Cheque.
We signed a (on revenue stamp)receipt of the transaction which stated that in case of back-off i would be liable tom pay "double" the token money.
However, after 2 days of introspection, I realized that I should hold on to the property.
I have not yet deposited the cheque or used the token money.
I am willing to return double i.e. 50k, of the token money.
Will iI be liable for any legal implications?
Does it mean a Breach of contract?
Manish Sinha
(Querist) 24 July 2013
My sister is interested in buying the flat and I intend to keep it within the family.
She , otherwise would not be able to buy a similar property. So i would be selling it to her though at a lesser premium than what i was offered.
Dr. Jyothi Vishwanath
(Expert) 24 July 2013
THEN it is a clear breach of contract as the proposed buyer has done nothing wrong. You have to return the money as agreed in case you back out.
Rajendra K Goyal
(Expert) 25 July 2013
Whether any stamped agreement was entered between you and the prospective buyer. What are the contents of receipt with revenue stamp. For agreement proper Stamp is to be paid. Your local lawyer can guide legally after seeing the language of receipt and documents.
Morally you are liable to pay.
Manish Sinha
(Querist) 25 July 2013
There was no stamp paper involved, it was a simple receipt from the brokers receipt book which stated the token money paid and in event of default by seller, the seller would be liable to pay double the token money.
We cross-signed on a revenue stamp, that means no stamp was paid.
Well, i concede to the fact that morally i am liable to pay. I am thankful to your advise becoz i wanted to sell it seamlessly to my sister.
So legally and morally, if i pay double, there would be no future implications on the sale to sister.
ajay sethi
(Expert) 26 July 2013
no return double the amount and take letter from buyer that said amount has been received in full and final settlement .
prabhakar singh
(Expert) 26 July 2013
Right ! there would be none the return receipt should also be accordingly signed with witness of broker,and original of earlier as well as of present should be in your custody.
Dr. Jyothi Vishwanath
(Expert) 26 July 2013
Since no stamp paper was executed, there is no legal liability to pay. So don't pay doublt amount to the buyer and sell it to your sister. Tell the buyer that you cant proceed with the sale. If he wishes to get double the amount, let him recover legally.
Raj Kumar Makkad
(Expert) 26 July 2013
No more to add as all aspects of the query have already been discussed leaving no room for me.
