{"id":44287,"date":"2025-01-28T15:58:12","date_gmt":"2025-01-28T10:28:12","guid":{"rendered":"https:\/\/www.zolvit.com\/blog\/?page_id=44287"},"modified":"2025-04-29T12:19:07","modified_gmt":"2025-04-29T06:49:07","slug":"token-money-refund","status":"publish","type":"page","link":"https:\/\/www.zolvit.com\/blog\/case-study\/token-money-refund\/","title":{"rendered":"Recovering a Token Amount After Property Sale Cancellation"},"content":{"rendered":"

Introduction of Token Money Refund<\/b><\/h2>\n

Property dealings generally require a token amount as good faith or earnest. Now what happens when the deal gets scrapped? This case is about how the buyer faced challenges recovering his token money back and how they went about settling it lawfully.<\/span><\/p>\n

Situation of Recovery Token Money<\/b><\/h2>\n

Problem Facing in Token Money Refund<\/b><\/h3>\n

A buyer made a token payment of 2% of the entire property value as part of the deal. But after paying that, the deal got cancelled because of some reasons that could not have been anticipated before. To regroup the token amount, the seller did not cooperate and took the stand that it was a non-refundable amount.<\/span><\/p>\n

Main Problems<\/b><\/h4>\n
    \n
  1. Unclear Terms of Agreement:<\/b> The sale agreement was devoid of clarity about refunds in the case of dissolution.<\/span><\/li>\n
  2. Financial Loss:<\/b> Losing that token amount would cost the buyer dearly.<\/span><\/li>\n
  3. Legal Uncertainty:<\/b> The buyer was unaware of their rights and what to do about the matter.<\/span><\/li>\n<\/ol>\n

    Evidence gathered:<\/b> The buyer had preserved all the communication made with the seller; emails, messages, and a signed copy of the sale agreement were very essential to substantiate the case.<\/span><\/p>\n\n\t\t

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    Solutions of Token Money Refund<\/b><\/h2>\n

    With a set of clear plans, our legal team started action.<\/span><\/p>\n

    1. Issue a Legal Notice<\/b><\/h3>\n

    The property lawyer<\/a><\/strong> draughted a formal legal notice to the vendor, asking for a refund of the token amount. The notice referred to the sale agreement terms, highlighted the absence of a valid “non-refundable” clause, and emphasised the buyer’s right to a refund under the Indian Contract Act, 1872. While the seller resisted initially, the notice forced the seller’s hand to the negotiation table.<\/span><\/p>\n

    2. RERA Complaint Filing<\/b><\/h3>\n

    After the serving of a legal notice to the seller, who delayed the refund for further complaints made by the buyer to the Real Estate Regulatory Authority, the guidelines under RERA require a refund of the money in case of valid complaints within 45 days.<\/span><\/p>\n

    The buyer advanced:<\/strong><\/p>\n