Max Shirodkar (Service) 12 July 2012

Verbal agreement for sale of property

Hello,

I am planning to sell my property in Mumbai. I had a verbal agreement with a broker who has taken a token amount vide cheque on my behalf and my relative has acknowledged (on xerox copy).

I am currently outside Mumbai, so I have requested my relative not to deposit the cheque until I personally meet the buyer in Mumbai.

My house is mortgaged to a bank and my original documents are with the bank, but the broker states that we can still go ahead with making a new agreement & registeration procedures, so I am a bit confused.

In case I don't agree to the buyer's (or broker's) terms & conditions, can I return the (undeposited) cheque and call off the deal? Will there be any consequences if I do so?

Would appreciate an immediate response.

Thanks in advance.

Kind Regards

BMD

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2 Replies

Anish Thakur 7018812737 (advocate) 12 July 2012

yes you can still revoke the agreement as cheque is still not deposited in your account and your consent is pending ,the agreement will gt complete if you deposited or get the instalation or any transaction of the consideration amount so you can still revoke this.

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CA. Vikash Dwivedi (Chartered Accountant) 12 July 2012

the transaction of sale is not comple since no action is taken from your side. yu can rescind the contract. also verbal contracts works on mutual understanding of the buyer and seller directly. in your case you were represented by your proxy the buyer gave you token money so that yu do not entertain other buyer (he paid yu in his interest) since yu are not happy with the deal yu can return his cheque.

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