Legal Question in Real Estate Law in India

you can deduct some amount and pay back the rest of the amount .

03.05.2014

Dear Sir / Madam,

Token monies received towards lease or sale-purchase of a flat is liable to be forfeited if the Lessee or the purchaser backs out of the transaction. You are entitled to forfeit the entire token amount paid by the Licensor towards taking your flat on Leave and License. But a reasonable approach would be to recover and deduct the actual loss suffered by you in terms of loss of rentals for the number of days the flat was kept reserved for the Licencee. To give you an example, if the Licensee finalized the deal to take your flat on Leave and License on the 01st of April on a monthly compensation of Rs, 50,000/- plus a Security Deposit of Rs, 1 Lakh and if he / she paid you a token amount of Rs, 20,000/- towards it. Now if on the 10th of April, the Licensee for whatever reasons does not go ahead with the Leave and License, you should deduct Rs. 16,666.67ps (Ea 1,666.67ps per day for 10 days) and return back the remaining Rs, 3,333.33ps from the token amount to the Licensee. No doubt, you are also entitled to recover interest on the Security Deposit of Rs, 1 lakh @ 9% for 10 days which works out to Rs 272.72ps which leaves a net returnable amount of Rs, 3,000/- to the Licensee who has backed out from the deal..

Regards,