Legal Question in Real Estate Law in India
I sold my flat in an agreement on Rs.50/-stamp paper and received bayana as earnest money in the form of three cheques, now one of part of bayana cheque of is bounced.
-Can the agreement is dissolvable by me, without any damage on my part?
-Can I forfeit the part of bayana amount I receive?
3 Answers from Attorneys
Yes and No in both your questions.
13.05.2012
Dear Sir / Madam,
All would depend on the terms and conditions in your Agreement to Sell. If the cheque is towards token money, it can be forfeited. If it is termed as Earnest Money, it takes the nature of a deposit which remains with the seller till the time of handing over the possession of the property to the buyer.
In your case, since the first cheque itself has bounced, the Agreement to Sell stands cancelled. If you are still keen to go ahead, you may ask for all monies upfront in one Demand Draft / Pay Order in your name and settle the deal.
You can mail me the Agreement for Sale for further on-line advice at [email protected]
Regards,
Check terms of the agreement and act accordingly.
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