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Kagaznama

Notice of Forfeiture of Earnest Money

At a glance

Price
Free
Stamp duty
No stamp duty — states a claim; forfeiture arises under the agreement/Contract Act, not this paper.
Registration
Registration is not required for the notice.
Witnesses
Witnesses are not required; proof of service is more important.

Free

Documents are free. Only kits are paid.

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Also called

  • earnest money forfeiture notice
  • token forfeiture notice
  • buyer default forfeiture notice

When you need it

For when the buyer allegedly breached the sale agreement after paying earnest money, and the seller wants to formally state a forfeiture position — without assuming 'earnest money' alone makes the sum confiscable. S.74 caps compensation at a reasonable amount.

Read more

State the precise breach, due date, the seller's readiness, any prior cure notice, and the amount retained — an asserted right, not an adjudicated one.

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.

Fill this one in
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 — states a claim; forfeiture arises under the agreement/Contract Act, not this paper. No Sch.I-A article taxes a notice like this. Print on plain paper/letterhead, keep proof of service.

Registration

Registration is not required for the notice.

Notarisation

Notarisation is not required.

Witnesses

Witnesses are not required; proof of service is more important.

Request Stamp Paper

Sample preview — placeholder answers, not your data

NOTICE OF FORFEITURE OF EARNEST MONEY

Notice date: 2 April 2026

From Harpreet Singh, Sector 35, Chandigarh, to Aarav Sharma, Sector 21, Panchkula.

Property: Plot 118, Sector 35-A, Chandigarh (Plot/land), Residential plot measuring 500 square yards.. Agreement: Agreement to Sell dated 01 August 2026. Earnest money paid: ₹5,00,000 (Rupees Five Lakh only).

  1. 1. ALLEGED DEFAULT

Default: Failure to pay agreed balance by due date. Details: Balance due 10 September 2026 remained unpaid after completion notice.. Performance due: 1 April 2026.

  1. 2. SELLER READINESS

Seller position: Seller was ready and willing to complete according to the agreement.

  1. 3. OPPORTUNITY TO CURE

Notice position: Prior written completion/cure notice was given.

  1. 4. FORFEITURE POSITION

Legal/contractual position asserted: Seller claims contractual forfeiture subject to applicable law and reasonable-compensation limits. Amount presently proposed for retention: ₹2,50,000 (Rupees Two Lakh Fifty Thousand only).

Compensation basis: Documented marketing restart and completion costs; final amount subject to law..

  1. 5. EXCESS

Treatment of any excess: Excess earnest money will be refunded within stated days. Refund period: 7 days.

This notice states the seller's claim and does not convert a disputed forfeiture into an adjudicated entitlement.

  1. 6. SIGNATURE

 
 
______________________________
Signature
Seller/authorised signatory: Harpreet Singh
Place: ____________________
Date: 2 April 2026

PERSONAL DATA NOTICE

This notice is given under the Digital Personal Data Protection Act, 2023.

Personal data in this document is collected only to issue and retain the seller's reasoned earnest-money forfeiture claim following an alleged buyer breach, communicate about that purpose, verify expressly supplied transaction information, and retain an evidentiary record.

The record will be held by Kagaznama and may be shown only to the buyer, seller, promoter/developer, authorised broker, advocate, lender, escrow holder, tax adviser, registering authority or other person directly involved in the stated cancellation, refund or settlement.

If the transaction is abandoned without a completed settlement, personal data will be retained for 90 days from that decision and then erased. If a cancellation, refund or settlement is completed, the record will be retained for that matter plus 12 months, except where a statute requires a longer named retention period.

A person named in this document may withdraw consent for future consent-based processing, request correction or erasure when the stated purpose has ended, or raise a grievance by writing to privacy@example.com. The record-holder should acknowledge and respond within 30 days.

Questions about this document

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

No stamp duty — states a claim; forfeiture arises under the agreement/Contract Act, not this paper.

See the full position on stamp duty, registration and witnesses
Does the Notice of Forfeiture of Earnest Money need registration in Punjab and Chandigarh?

Registration is not required for the notice.

See the full position on stamp duty, registration and witnesses
What does the Notice of Forfeiture of Earnest Money cost on Kagaznama?

Free.

Documents are free. Only kits are paid.

Does the Notice of Forfeiture of Earnest Money need witnesses?

Witnesses are not required; proof of service is more important.

See the full position on stamp duty, registration and witnesses

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