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Cancelled property deal after signing MOU and taken token amount


23-Apr-2023 (In Recovery Law)

I signed an MoU with the buyer to sell my flat and received the token amount. the MoU was notarized. 3 days later, due to certain circumstances, I do not want to sell my flat. I conveyed my intention to the buyer and the brokers. Brokers are now threatening a legal case, unless they are paid their brokerage. Buyer is refusing to take back his token amount, insisting that the deal has to go through, or compensate by paying double token amount. There was no provision on the MoU, regarding any financial penalties to any party in case the deal gets cancelled. Am I legally bound by the MoU to sell?

Answers (1)

Answer #1
790 votes
Yes you can very well refuse to honor transaction subject to terms and conditions between parties. At the most purchaser can file suit for specific performances of MOU and Broker can file suit for claiming commission. Both suits are like long way to go and not so easy to pursue. You return his token amount and finish the matter. Try to negotiate with borrower also.

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