Receipt for Non-Refundable Deposit, a Security against Your Sale

Receipt for Non-Refundable Deposit is legally permissible form, where any buyer pays certain amount of money to the seller as a deposit against the purchase of any specified product or property and if the buyer is unable to pay the balance amount within the stipulated time period, then the deposit is not refundable or can be forfeited.

For example, you have contracted with a real estate agent for the purchase of a property and paid him certain amount as a deposit for holding the sale for sometime, till you pay the balance amount within agreed time period. This security deposit amount is known as Non-Refundable Deposit and the agent would issue a receipt for your paid sum. Now, after receiving the deposit, the real estate agent, on his part will remove the property from the market and hold it for you till your payment due date.

But after certain period of time, you have second thought and do not want to purchase the property and visit the agent to refund the amount, which you have paid as a deposit. In such case, the agent has right to forfeit or non refund your deposit. The agent can show the forfeit amount as damage to your non-honoring of the contract.

These non-refundable of deposit is permissible by the law, but it is also essential to see the exact wordings of the Receipt for Non-Refundable Deposit. The receipt should mention the word non-refundable for the knowledge of the buyer. The buyer pays the amount knowing that such deposit would be forfeited, if he refuses to pay the balance payment or breach the contract of purchase.

Is Receipt for Non-Refundable Deposit permissible by the law?

Such question would be raised by the buyer, who has forfeited his non-refundable deposit or buyers, who have been asked to sign receipt for non refundable deposit. The buyer may also wonder about the various conditions imposed by the seller for his sales and speculate, whether such non-refundable conditions are applicable to them or should they agree with them? It is necessary to understand that the seller may place any conditions attached to the selling, provided such conditions do not breach any of discrimination legislation. Legally, the buyer is bound with the conditions of the seller once it is signed by him, whether he/she read the receipt or not.

But on certain situations, where the seller breaches the agreement and still refuses to return the deposit then the buyer can consult with the lawyer and appeal to the court for the redresses.

The law has ruled that for any breach of contract by the seller or if they are not able to offer the product, for which the deposit was made then, they are liable to refund the full non-refundable deposit, irrespective of the damages suffered by the seller.

The main essence of the Receipt for Non-Refundable Deposit can be summed up as follows:

• Once you agree to the Non-Refundable Deposit, you are bound by it, even if you change your mind afterward, regarding the use of the service.
• Buyer pays Deposit and balance amount of the service product, then only he would be liable to use the offered product.
• If the balance amount for the service is not paid, buyer forfeits the deposit and seller retains the deposit as damages.
• If the seller is unable to supply the agreed product or breach the contract, then buyer is liable for the full refund according to the law.

If you are also planning to purchase any property, then be sure and make up your mind beforehand for the purchase, because the change of mind may loose your advance deposit.

The following Receipt for Non-Refundable Deposit form may assist you, when you make your own receipt, for the acceptance of the deposit:

Receipt for Non-Refundable Deposit

Received of ___________________, hereinafter referred to as “Buyer”, the

sum of ________ ($_______) as a Non Refundable Deposit toward the

purchase of ________________ to be sold to Buyer by_________________,

hereinafter referred to as “Seller”, owner of said property, on or before the

____ day of ______________, 19__, for a total price of ($_________), this

Non Refundable Deposit being a part thereof.

Buyer understands, acknowledges and agrees that if he fails to pay to Seller

the remaining $______ due by the above date, said Non Refundable

Deposit shall be forfeited.

Seller hereby agrees in consideration of payment of said Non Refundable

Deposit to withdraw said vehicle from the market until the above date and to

transfer title to said vehicle to Buyer upon receipt of the remaining amount due.

___________________________

___________________________