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Refund of Earnest Money Letter

At a glance

Price
₹99 · GST included
Stamp duty
No stamp duty on the letter itself — it's the refunding party's own payment record, not a receipt, creating no right.
Registration
Registration is not required for an ordinary earnest-money refund letter.
Witnesses
Witnesses are optional; bank evidence and signed acknowledgment are more important.

₹99

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 refund letter
  • token refund letter
  • property advance refund letter

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 when a proposed sale falls through and the recipient returns the earnest/token money. A clean payment trail: the cancelled transaction, amount received, reason, sum returned, any agreed deduction, mode — don't quietly convert this into a no-claim certificate unless all claims are settled. Prevents disputes over whether payment was returned, adjusted, or forfeited. A refund record only — doesn't cancel a registered sale deed.

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

No stamp duty on the letter itself — it's the refunding party's own payment record, not a receipt, creating no right. If the buyer countersigns acknowledging the refund, THAT is a receipt under Art.53 Sch.I, Stamp Act 1899: over ₹5,000, a ₹1 revenue stamp affixed and signed across. A separate settlement/cancellation deed is stamped on its own.

Registration

Registration is not required for an ordinary earnest-money refund letter.

Notarisation

Notarisation is not required.

Witnesses

Witnesses are optional; bank evidence and signed acknowledgment are more important.

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

REFUND OF EARNEST MONEY LETTER

Date: 1 April 2026

To Aarav Sharma, Sector 21, Panchkula, from Harpreet Singh, Sector 35, Chandigarh.

Property: Plot 118, Sector 35-A, Chandigarh (Plot/land), Residential plot measuring 500 square yards.. Transaction reference: Agreement to Sell dated 01 August 2026.

Earnest money originally received: ₹5,00,000 (Rupees Five Lakh only).

REFUND

Reason: Transaction cancelled by mutual consent. Details: Loan condition was not met and both parties agreed to cancel..

Refund amount: ₹5,00,000 (Rupees Five Lakh only). Deduction status: Full earnest money refunded without deduction.

Refund mode: Bank transfer. Reference: UTR HDFC260915500. Refund date: 2 April 2026.

EFFECT

Settlement effect: Refund settles only the earnest-money amount and does not waive unrelated claims.

Questions about this document

Does the Refund of Earnest Money Letter need stamp paper or stamp duty in Punjab and Chandigarh?

No stamp duty on the letter itself — it's the refunding party's own payment record, not a receipt, creating no right. If the buyer countersigns acknowledging the refund, THAT is a receipt under Art.53 Sch.I, Stamp Act 1899: over ₹5,000, a ₹1 revenue stamp affixed and signed across. A separate settlement/cancellation deed is stamped on its own.

Does the Refund of Earnest Money Letter need registration in Punjab and Chandigarh?

Registration is not required for an ordinary earnest-money refund letter.

What does the Refund of Earnest Money Letter cost on Kaagazaat?

₹99, GST included.

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

Does the Refund of Earnest Money Letter need witnesses?

Witnesses are optional; bank evidence and signed acknowledgment are more important.

Often needed with this document

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