Verbal agreement to sell property & received Token Advance
Querist :
Anonymous
(Querist) 06 May 2010
This query is : Resolved
My Friend had intended to sell our flat in Mumbai through a broker.The broker informed them of an interested buyer who spoke with us telephonic-ally and agreed to pay a token amount of Rs 1 lakh which the interested party deposited through cheque into our bank account.They got into a verbal agreement to sell the flat with the buyer thru the broker
He had initially mentioned to my friend saying he had a loan approved and sanction letter However despite sending repeated emails to the broker to get us the sanction letter from the interested party , they did not receive any sanction letter for the last 1.5 months
Hence my friend informed the buyer through the broker that they do not wish to proceed with the sale of our flat and that they would refund the buyer's token amount to him as a cheque .
There was no signed / written agreements, nor gave any receipt to this buyer for this 1 Lac as a token deposit .In fact they dont have any address or contact details even of this buyer.They asked the broker for the details of the buyer and he is not ready to disclose saying that he has an MOU with the buyer on my friend's behalf . They did not enter into any written agreement with the broker or authorize to get into any MOU on their behalf.
My friends have sent a photocopy of their sale deed to our broker , and the buyer states that the broker has entered into an MOU with him though they have never authorized the broker to act on our behalf nor given him anything in writing.
The buyer than called my friend and said he wants to buy the flat , they said as it was a long time and there was no sanction letter of his loan from the bank the deal is off The buyer said his son was an advocate and said he will take legal action against my friends and is refusing to take his token money back .His son called up my friend and is asking for 10 lacs or ask us to proceed to sell the flat in return or he is threatening to send us a legal notice.
I have the following queries :
1)There is no written agreement in place and no receipt for the token advance provided ..Only a verbal agreement to sell the flat subject to the condition that the flat will be sold basis on producing a sanction letter from bank and all payments in DD...This did not happen over the last 1.5 months ...Is a verbal agreement held in court of law as a evidence ...as my friend do not intend to sell the flat to that buyer anymore
2)The broker is acting smart and backing out of the scene fearing legal consequences from the buyer and they have told the buyer my friends would only talk thru the broker...from the buyer end once the dad talks and once the son talks...so my friends are not sure who is the actual interested party...
3) Despite repeated requests to collect back his refund amount , the buyer says either sell the flat or cough up 10 lacs
else i will file a law suit
4) the photocopy of the sale deed agreements are with the broker / buyer...can they forge the signature and make an MOU etc and get us involved in selling the flat
5)How do my friends return his money to him as they do not have his bank details , no email id etc ..only sending him sms to take his money back....but he says i dont need money...
6)What are the legal implications of a verbal agreement to sell a property and then drop out of the same ?
7) Do my friends need to file an FIR to be on the safer side like signature forgery etc?
8)In the worst case if the buyer doesn't take his money are my friends eligible to pay more compensation ?After how long does this amount as a refund become null and VOID
9)Are they legally liable for anything?
10)What would be the best course of action.
Your advise would be very much appreciated Please help asap
Verbal agreement to sell property & received Token Advance
Akhilesh Kumar
(Expert) 06 May 2010
There is no legal sanctity of the verbal agreement in relation to the tranfer of the property . it is not enforceable by law.
so do not worry about the things and do not force them to take back the token money.
But make sure that you have not signed the sale deed and offered the same and it was not duly accepted by the others in writing.
