I recently got token money for one of my properties...and signed on a paper with revenue stamp that i have received xx rupees from seller and that i will sell my property at yy rate. the agreement does not say anything else.. Now, there is a change of heart and i dont want to sell my property. i am not planning to sell it at a higher rate or anything like that..its just that i can afford to hold it and because of emotional value i dont want to proceed with the deal

Can i back out by returning the money??
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  • I assume ats is not done yet.
    I guess if nothing is mentioned on that stamp paper regarding the backout clause, you will be legally safe BUT personally speaking it should not be done once you enter a deal since it leaves a bad after taste for the buyer for (s)he may have invested a lot of time and energy in finalizing and negotiating with you.

    My 2 cents, ignore if you don't like.
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    1 Comments
    • kgaura54422 years ago
      Hello,

      On something similar

      We were trying to buy a flat in Mumbai , and thus my father has given an amount money of 11 Lac Rs through cheque for a resale flat.

      We do not wish to buy the flat anymore as we are unable to pay the required amount. No agreement (no stamp paper agreement ) has been made yet from both the sides and my father has neither signed on any clause saying the money will get forfeited in case of cancellation of the deal.

      What i can do to get my fathers hard earned money back as the seller is refusing to pay the toke amount back ?
  • Nothing is done as of now..and i totally agree with u that it will leave a bad taste for buyers...and even i am not liking myself for doing so...i can sincerely apologize to them and pay the applicable interest....i know with the given piece of paper nothing can be done legally against me but i want to know the norm...
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  • Sit down for 5 mins, and just think from start, whether you want to sell your property or not. Don't think what you have already done.

    Mistakes happen and its our responsibility to come out from it.
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  • If you took money and promised to sell, think of not only in legal terms but also in moral terms, what if some one did this to you? now thinking on legal terms, it all depends on the language of the agreement, you may be in a totally harmless possition or you may be liable for equal amount in damages or worse for coumpounded damages meaning for the differencein what you were going to sell for and what he ends up buying in market.
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  • Generally if you back out after getting token money then you are to pay double of that to perspective buyer.
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  • Originally Posted by who me
    If you took money and promised to sell, think of not only in legal terms but also in moral terms, what if some one did this to you? now thinking on legal terms, it all depends on the language of the agreement, you may be in a totally harmless possition or you may be liable for equal amount in damages or worse for coumpounded damages meaning for the differencein what you were going to sell for and what he ends up buying in market.


    i am not much bothered about legalities because agreement does not mention anything in terms of forfeiture etc. but u re right that morally this is not right :( .. somehow after taking the token i realized how much attached i am to the property
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  • You have to pay double of the token money recd by you, Many time its happen this is market rule.
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  • Token money normally comes with some strings attached i.e. pay double if seller backs out or forfeit if buyer backs out. It should be there in PARCHI(as it is called in RE terms) which has revenue stamp, if not there you can back out without any hassles legally.

    Originals of PARCHI is kept by buyer to safe guard his funds. Do you have copy of it or just assuming that you didn't sign anything fishy. Be double sure that you have not signed anything like this before backing out. As this is very generic clause of PARCHI.

    Hope you come out good from this, wish you luck.
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  • I understand your situation, as I have also been through such a situation personally (but finally completed the deal). I would suggest if it is only heart which is stoping you then go ahead with the deal because you will earn somewhere else. But if mind is stoping you then think about pulling out. Hope you understand what I am talking about :)
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  • Originally Posted by himrathore
    I understand your situation, as I have also been through such a situation personally (but finally completed the deal). I would suggest if it is only heart which is stoping you then go ahead with the deal because you will earn somewhere else. But if mind is stoping you then think about pulling out. Hope you understand what I am talking about :)


    it is the heart :)..and i didn't sign anything fishy. The paper that i signed doesn't mention any terms and conditions. It simply states the token amount received by me and the amount at which i ll sell my property..
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  • I would not suggest backing out as it is your hearty call and no monitory benefit involved, but still if you want to back out this is the right time donot delay it further.
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  • Originally Posted by himrathore
    I would not suggest backing out as it is your hearty call and no monitory benifit involved, but still if you want to back out this is the right time donot delay it further.


    you re right .. its just a day since i took the token..and will decide by this evening...
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  • Originally Posted by Krazy Yuppie
    Generally if you back out after getting token money then you are to pay double of that to perspective buyer.


    nothing like this is mentioned on agreement paper that i signed and broker didn't share terms and conditions. still i have to pay double the money back??
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  • If you've made up your mind, try to resolve the matter amicably.

    There are no perfect answers in Indian laws. If someone gets determined to drag you to the court, even a small chit with your sign would be sufficient to get you in the soup. You will unnecessary feel harassed and your property may unnecessarily be dragged in litigation.

    Try that such situation never arrives and talk out the situation peacefully giving your well thought out response.
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  • never knew that property transactions can fluctuate the BP :) .... Problem is i am swayed by emotions, my mind says that i am doing the right thing by selling off but heart is attached to the place
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