Question Regarding Token For Property
2 months ago
Hi.. A few days ago I wanted to sell my property. I met someone and he gave me a check of Rs 1 lakh as token amount. He wrote all the details (my property number, pan, aadhar etc) on a plane paper, put a revenue stamp on it and got me sign it. I did not put the check in my account and told them I donot want to continue with the deal. Now they are telling me that they will take legal action. Can someone take legal action against me in such case?
A.Dear Client,
In the given scenario, no legal action is attracted against you at all. Legally, until and unless an agreement to sell is executed between the Seller and the Buyer, neither any token money/advance against the agreed consideration money is paid nor, accepted in the matter of transfer of immovable property. So, in the absence of a basic document and also for non-encashment of the token cheque, the buyer cannot take the matter for granted and cannot even take any legal recourse against you for specific performance. Just return the cheque to the Buyer with a recorded delivery (Regd/Speed Post) to discharge your obligation to resolve the matter in the right way.
In the given scenario, no legal action is attracted against you at all. Legally, until and unless an agreement to sell is executed between the Seller and the Buyer, neither any token money/advance against the agreed consideration money is paid nor, accepted in the matter of transfer of immovable property. So, in the absence of a basic document and also for non-encashment of the token cheque, the buyer cannot take the matter for granted and cannot even take any legal recourse against you for specific performance. Just return the cheque to the Buyer with a recorded delivery (Regd/Speed Post) to discharge your obligation to resolve the matter in the right way.
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A.Dear client,
A token amount is the sum that the buyer gives the vendor as payment in advance or a portion of the sale consideration as security for the deal. The Sale Agreement Deed may contain a record of this. Although it is frequently requested by the seller, token money is not legally required; therefore, as a buyer, you must take particular precautions when paying the token money to avoid losing money in the event that something goes wrong. A Memorandum of Understanding may be signed by the seller and the buyer. It is frequently misinterpreted as a sale agreement even though it is not a formal document. In essence, it is an agreement that states each party's intention, desire, and will to reach a consensus on a common course of action—in this case, to complete the real estate transaction. It just expresses the parties' intentions; it confers no legal rights. To put it succinctly, it does not provide significant rights until a formal contract is signed. In a court of law, it cannot be enforceable legally. The token money paid under the MOU is protected even though any party may withdraw from the agreement. However, if one wishes to back out, he is required to pay back all the money he has taken and also pay any additional fine for the breach.
thank you
A token amount is the sum that the buyer gives the vendor as payment in advance or a portion of the sale consideration as security for the deal. The Sale Agreement Deed may contain a record of this. Although it is frequently requested by the seller, token money is not legally required; therefore, as a buyer, you must take particular precautions when paying the token money to avoid losing money in the event that something goes wrong. A Memorandum of Understanding may be signed by the seller and the buyer. It is frequently misinterpreted as a sale agreement even though it is not a formal document. In essence, it is an agreement that states each party's intention, desire, and will to reach a consensus on a common course of action—in this case, to complete the real estate transaction. It just expresses the parties' intentions; it confers no legal rights. To put it succinctly, it does not provide significant rights until a formal contract is signed. In a court of law, it cannot be enforceable legally. The token money paid under the MOU is protected even though any party may withdraw from the agreement. However, if one wishes to back out, he is required to pay back all the money he has taken and also pay any additional fine for the breach.
thank you
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