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Earnest Money Forfeiture Addendum

At a glance

Price
₹399 · GST included
Stamp duty
Chargeable under Art.5, Sch.I-A (Punjab/Chandigarh) as its own agreement — not a re-stamp of the principal.
Registration
Earnest money alone isn't registrable; a s.53A (TPA) transfer contract is, compulsorily, under s.17(1A) Registration Act.
Witnesses
Two witnesses help evidence execution, not replace registration.

₹399

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • earnest money forfeiture clause
  • bayana forfeiture addendum
  • earnest deposit default addendum

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

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Why you need it

When you need it

For fixing, in an existing agreement to sell, exactly how earnest money treats buyer default — not a vague 'bayana forfeited' line. States which payment counts as earnest, the default event, preconditions, notice/cure, treatment of payments above earnest, and seller-default/mutual-cancellation outcomes. S.74 caps a named sum at reasonable compensation, not automatic full recovery.

See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

Chargeable under Art.5, Sch.I-A (Punjab/Chandigarh) as its own agreement — not a re-stamp of the principal. A Chandigarh Item-22 earnest-money rise may draw extra duty; handing over possession lets the Collector charge the conveyance rate. Stamp before signing (s.17); unstamped is inadmissible until duty+penalty paid (s.35).

Registration

Earnest money alone isn't registrable; a s.53A (TPA) transfer contract is, compulsorily, under s.17(1A) Registration Act. RERA: also s.13.

Notarisation

No substitute for compulsory registration; creates no enforceability alone.

Witnesses

Two witnesses help evidence execution, not replace registration.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

EARNEST MONEY FORFEITURE ADDENDUM

Harpreet Singh, of House 118, Sector 35-A, Chandigarh, and Aarav Sharma, of House 211, Sector 21, Panchkula, are the parties to this instrument.

Seller contact: +91 98150 12345 / harpreet@example.com. Buyer contact: +91 98765 43210 / aarav@example.com.

  1. ORIGINAL AGREEMENT AND AMOUNT

The parties refer to Agreement to Sell dated 01 August 2026 for House 52, Sector 8, Chandigarh. This addendum is executed on 1 April 2026.

Earnest amount: ₹25,00,000 (Rupees Twenty Five Lakh only). Character: Part payment credited toward price and also security for performance to the extent lawful.

  1. BUYER DEFAULT EVENT

Potential trigger: Failure to complete by the contractual date after seller satisfies completion conditions. Seller precondition: Seller must be ready and willing to complete and comply with its material contractual conditions. Notice process: Seller gives written default notice and the stated cure period before claiming forfeiture. Cure period: 7 days.

  1. LIMIT ON FORFEITURE

Forfeiture/compensation extent: Reasonable compensation subject to section 74 and not exceeding the earnest amount stated.

Any forfeiture or stipulated default amount must be read with section 74 of the Indian Contract Act, 1872: the aggrieved party may recover reasonable compensation not exceeding the amount named or penalty stipulated; the document should not describe a punitive sum as automatically recoverable merely because it is labelled earnest money.

Payments above earnest: Payments above the earnest amount are refundable/adjustable subject to independent lawful claims.

  1. SELLER DEFAULT AND MUTUAL CANCELLATION

Seller default: Buyer retains contractual/statutory remedies including refund and available compensation. Mutual cancellation: Earnest/refund treatment must be stated in the mutual rescission document.

  1. DISPUTE

Questions about this document

Does the Earnest Money Forfeiture Addendum need stamp paper or stamp duty in Punjab and Chandigarh?

Chargeable under Art.5, Sch.I-A (Punjab/Chandigarh) as its own agreement — not a re-stamp of the principal. A Chandigarh Item-22 earnest-money rise may draw extra duty; handing over possession lets the Collector charge the conveyance rate. Stamp before signing (s.17); unstamped is inadmissible until duty+penalty paid (s.35).

Does the Earnest Money Forfeiture Addendum need registration in Punjab and Chandigarh?

Earnest money alone isn't registrable; a s.53A (TPA) transfer contract is, compulsorily, under s.17(1A) Registration Act. RERA: also s.13.

What does the Earnest Money Forfeiture Addendum cost on Kaagazaat?

₹399, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

Does the Earnest Money Forfeiture Addendum need witnesses?

Two witnesses help evidence execution, not replace registration.

Often needed with this document

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