Mumbai Residential Real Estate - Sale / Purchase Transactions

Q: How much is a reasonable token amount when closing a deal as per standard / conventional market practice.

In the unfortunate event, if the deal breaks, is the token amount returnable & if there is a deduction allowed / acceptable as per standard / conventional market practice.

Ashish,

26th January 2017

Property Selling in Mumbai

booking cancellation

booking cancellation and refund of payment

token amount

mou

booking amount

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Replies (3)

Hi,I have an open plot of 8775 sq.ft area owned by me to sell at Chincholi Bunder Road Malad West, if anyone is interested please contact me on 9833435416

yojna,

16th January 2018

Comment

I am agree with you Ashish....
At the same time, buyers also need to check if the house has a clear title, approved plan, there are no existing loans on it, and the owner can arrange all the required no-objection certificates (NOCs). Buyer should, therefore, give the seller a timeline to produce these documents. The agreement should say that failing any of these, the buyer will cancel the deal and should be refunded the earnest money within a time frame. And, in case of a delay reasonable interest will be levied.

Shreya Agarwal, Mumbai

27th January 2017

Comment

Hi,I have an open plot of 8775 sq.ft area owned by me to sell at Chincholi Bunder Road Malad West, if anyone is interested please contact me on 9833435416

yojna,

16th January 2018

Hi,I have an open plot of 8775 sq.ft area owned by me to sell at Chincholi Bunder Road Malad West, if anyone is interested please contact me on 9833435416

yojna,

16th January 2018

HI,
There is no hard and fast rule regarding the same and depend on mutual understanding between the buyer and the seller. It can be varied from 2-5%. The above figs are indicative and based on my experience.
1) Token Money:- Rs 50000 – Rs 100,000 or 2% of Property value, Whichever is lower
2) MOU: Upto Rs 200000 or 2% of Property Value, Whichever is lower
3) Notarized Agreement: Upto Rs 300000 or 4% of Property Value, Whichever is lower
4) Sale Agreement: Upto Rs 1000000 or 10% of Property Value, Whichever is lower
Read all the terms and condition of MOU carefully before signing it. if it is mentioned in MOU, that you are unable to pay the the agreed amount within given date then seller or builder will keep your token amount.

Ashish Bhoite, Mumbai

27th January 2017

Comment

Hi,I have an open plot of 8775 sq.ft area owned by me to sell at Chincholi Bunder Road Malad West, if anyone is interested please contact me on 9833435416

yojna,

16th January 2018