(i) Witnesses: It is important to obtain the signature of at least 2 witnesses upon receipt of payment/ MOU. In many cases, buyers and sellers sign an agreement without witnesses. In the event of a dispute, it is difficult to prove the authenticity of the agreement. As the buyer pays this money to show his or her real interest in the property, this amount is also referred to as a “pre-caution” or “serious down payment.” The other terms are “binders” or “good faith pledges.” Money tokens is the advance that a buyer pays to the seller after he has entered into a verbal agreement to buy his property. In addition to symbolic funds, the Memorandum of Understanding is useful when the final agreement is subject to certain conditions. For example, the seller has purchased another home, but will not postpone until after 6 months or buyers will need time to organize money. (c) Payment details: Mention the mutually agreed counter-value and when it is due by the buyer to the seller. For example, 2 Lakh paid as token money, 10 Lakh on the date of the sales contract and balance 68 Lakh paid at the time of sale. (c) Notarized Convention / MOU: Although it is not necessary to note the slack or agreement at the time of payment of symbolic money, but in my opinion it is advisable. Notary only certify that all parties have signed before him. It protects a buyer`s interest to avoid litigation. In short, an agreement signed between the parties can be notarized in order to make it safer and more binding in every sense of the word.
However, since this document has no legal validity, since it has not been registered, it is most often used as proof of payment and not as a legal document that can be presented to the courts in the event of a dispute. The buyer and seller enter into a registered contract only when the buyer pays at least 10% of the contract value and a construction/buyer contract or sales contract is signed between the two parties. (e) Mention the dener and sale/subsequent execution contract: If you issue a payment receipt or execute a contract, mention that you currently pay only one symbolic money. An agreement will be signed later and they will mention the timing of the sale/sale contract execution, as I mentioned in the previous point. See also: COVID-19: How to accept money from online tokens? Since there is little way to ensure the refund of the money from the chips, the buyer must keep the amount of the chips as low as possible and commit to a seller only after making all monetary arrangements to complete the transaction. For example, it may be risky to pay token money unless the bank has approved your home loan application. It would be nice if we could download the agreement from here. Legal Document generatoraffidavit Format There are no rules regarding the payment of token money in real estate transactions. (d) Timeline/ Validity: Assuming you sign an agreement, please mention the validity of it. Also mention the payment schedule and other terms and conditions (if necessary) of the agreement. In the case of my clients, who is a seller, the buyer does not register the property even after 3 years of signing the sales contract.
The reason is that there is no such timetable in the sales contract to conclude the agreement.