Questions & Answers
The legal way to issue a security cheque upon concluding an agreement
Dear sir/madam,
In the event of sale/purchase, both parties need to issue a security cheque of 10% of the agreed transaction value.
Will both parties issue this cheque in each other's name or in the name of the broker's company? What does the law say?
Hello,
As per your query, it depends upon the contract of sale and purchase. If it is a real estate property, then it should be as per the contract and the broker should keep the cheque unless the sale process is done.
If there is any disagreement between the parties later, in regard to the sale and the sale is not complete, then the additional clauses should be written to guard the cheque from presenting to the bank.
But, if the transaction is not real estate; any other transaction, then the agreement's proper clauses should be incorporated.
