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sumit (manager)     22 December 2011

Return of token amount

Hello, 

I have a property that I am looking to sell. A prospective buyer gave me a token amount of 1 lakhs through bank transfer (no agreement was signed for this). I shared the property documents with him. He took some weeks to verify the document while I was pushing him to do the sale agreement. Finally, he didnt do the agreement and backed out of the deal. Now he is asking for the token amount back. Am I liable to return the token deposit if the buyer backs out of the deal? I have incurred expenses in holding the apartment for him.

Please help.

Thanks,

Sumit



Learning

 2 Replies

ABHIJEET PARIKH (Bcom LLB MBA)     22 December 2011

Ideally holding or forfeiting the token depends on Strength either of the parties 

for not giving back d token amount the prospective buyer can 

go to police , politician or court (warning but matter will not stand )

Police too will say its civil matter 

Only mistake u made that u shared the property docs with him 

that will prove relation between both of u if he goes to police

even though civil matter they will interfere 

best is to make an settlement

Kumar Doab (FIN)     22 December 2011

The payment is by bank transfer, thus can be proved.

It is better to negotiate and close the matter. You must pay by cheque and obtain acknowledgment of payment.


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