CelloYellow 26 August 2017

Seller not willing to provide receipt/ sign token agreement

Hello. We are trying to purchase an apartment and the broker has asked us to give the seller a cheque as a token amount. However, the broker says the seller is not willing to sign any token agreement or even provide a receipt. He says the cheque will not be depositted and will be handed back at the time of signing the Sale Agreement.

This seems very odd to me. Is this a common practice? Or should I insist on some receipt/ agreement for the token deposit?

Thanks

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7 Replies

Kumar Doab (FIN) 26 August 2017

The broker is from which side; you or seller?

Is this broker registered?

Siddharth Srivastava (Advocate) 26 August 2017

Donot proceed with transaction. Take a valid receipt for each payment otherwise you may loose your hard earned property. As such there is no such practice.

Kumar Doab (FIN) 26 August 2017

The ideal and right way is to reduce the agreement and T&C in writing and be signed by both seller, buyer and witnesses and reciept of any proceeds be mentioned in it.

Kumar Doab (FIN) 26 August 2017

'Buyer Beware' applies to property deals.

It shall be appropriate to get proper legal opinion from a very able local senior counsel of unshakable repute and integrity specializing in revenue/property/civil matters before signing or making payment.

This may cost some FEE but can defend long term interest and hard earned monies.

Kumar Doab (FIN) 26 August 2017

You must 1st of all dtermine if Title of the property is clear and free from any defects.

Kumar Doab (FIN) 26 August 2017

Same Query:

https://www.lawyersclubindia.com/forum/details.asp?mod_id=153278&offset=0

CelloYellow 26 August 2017

Hello. Thanks to both of you for your responses. The broker is from the seller's side but I go in touch with him directly and so, in theory, he is representing both of us. We will be hiring a lawyer to review all documents prior to signing a sale agreement. However, before sharing the document copies the sellers would like us to make a token deposit. What I am finding odd is that they do not want to sign anything.

Per uour advice we will insist on a receipt or a token agreement.

Thanks