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Selling of residential property

Akash Sharma (Self employed ) (21 Points)

10 February 2021

Hi everyone,

I want to sell a residential property in delhi to a resident but I donot want to enter into agreement to sell. Can anyone guide as to how I should proceed and complete this transaction. Also how is token amount different from advance amount and does accepting token amount creates legal obligation to sell. Thanks in advance

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 10 February 2021

For selling of residential property sale agreement must be made it is compulsory and token money is the advance amount you get for selling the property. Sale agreement must be made for property dealings as it will help for calculating LTCG and no dispute can arise in future.Token is a small amount of money that has to be paid by the buyer as an indication of serious intent to purchase a property. Token money is paid on mutual agreement between the buyer and seller about the selling price.