I’m planning to buy an apartment and will be signing an agreement, paying a 10% booking amount of ₹4 lakhs. Can I include a clause where the seller has to refund me four times the booking amount (₹16 lakhs) if they back out of the deal? Would such a clause be legally valid in the Agreement to Sale?
Best Answer
While you can include such a clause, it’s unlikely to be legally enforceable in India. Indian law generally allows for only double the booking amount as liquidated damages in case of breach by the seller. A clause demanding four times the amount could be deemed unreasonable and unenforceable by a court.
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