A seller in trouble (Manager) 20 April 2011

Am I liable for paying compensation

Hello all,

Going straight to the point.

I have a property which I wanted to sell and buy bigger property. We found a prospect buyer though an agent and did MOU with some token amount. We have not yet entered into any kind of agreement or contract or sale deed. Now due to some unexpected and unavoidable reasons I need to cancel the deal.

However, the buyer is pressurizing me to pay him compensation for the cancellation of deal. I am ready to pay his amount back but he is asking me to pay interest on that amount and in addition to that some compensation against the price hike in real estate market.

I would like to seek advise from you elites if I am liable to pay any compensation to the buyer in such scenario.

eagerly awaiting for your kind advises.

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6 Replies

Bharatkumar (ADVOCATE ) 20 April 2011

U make a MOU, please see the condition but i think if u cancel the deal u pay a compensation. If buyer cancel this deal what u do? U give a refund? THis is humanity?

A seller in trouble (Manager) 20 April 2011

Thank you for the reply. I understand the humanity factor, however does it mean that whatever the other party asks for I should pay that amount?

There is no such clause mentioned in the MOU about cancellation of deal or any kind of compensation in such event..

Even in case I am liable to pay any compensation, what will be that amount?

Bharatkumar (ADVOCATE ) 20 April 2011

First ask the buyer then decided As per bank interest u paid the amount.

A seller in trouble (Manager) 20 April 2011

Thank you. That means I am liable to pay only the interest on the amount I have taken from him. No additional compensation is required. What is legal aspect to this? As mentioned earlier, Humanity factor is there, but keeping that aside Is it legally binding on me to pay any compensation?