Last week we had a verbal commitment with our prospective buyer regarding our 3BHK apartment in Bangalore and we were happy that they were interested to buy our house. We did not took any token money and did believed in their verbal commitment, but they renege on their promise. Above all, on their request, we denied other interested prospects as well and stopped open house. It is our first time to sell house and we have no idea about legality of token money.
How much should be the token amount? Is it legal to take token? Do we have to do any paper work for token?
In case, if initial transaction doesn't went through then do we have to return the said money? I don't have any intention to keep their money, if their reason of stepping back is reasonable. What I want is the 100% commitment and if they fail then they should be penalized. The reason being, I have to arrange everything from scratch.