Fix terms and conditions in earnest agreement with the help of a legal advisor
The process of buying an immovable property involves passing through several stages. One of these is earnest money or token money. When the buyer decides to buy the property and signs the agreement and deposits a fixed amount, it is called token money. However, token money is not a legally defined term. The consideration amount is mentioned in the Transfer of Property Act. But for this type of agreement, in colloquial language, earnest money is mentioned. This agreement is a legal document under the Contract Act. Normally this amount is some percentage of the total purchase price. The terms and conditions related to the registration of the property are also included in this agreement.
Conditions regarding refund of earnest money
-
Suppose that on demarcation of a land, it does not come out equal to the area registered in the government, and then the buyer can withdraw from the agreement. Or can demand refund on the basis of this condition in the agreement.
-
Suppose both the parties together have decided in the earnest money agreement that apart from the earnest money, the buyer will also deposit the remaining amount within a time limit. But the buyer fails to pay the price. In such case the seller can forfeit the entire earnest money.
-
Suppose in earnest agreement it is mentioned that the buyer is unable to make further payments due to circumstances beyond his control. In this situation also the buyer can claim for refund.
Keep these things in mind in earnest agreement
-
Keep these things in mind in earnest agreement
-
All the terms and conditions between the two parties should be clear in the agreement.
-
Check all the documents of the property before depositing the earnest money.
-
Thoroughly check that the person to whom you are giving the earnest money is the real owner,
-
Fix the terms and conditions in earnest agreement only after legal advice.
