Kagaznama

Refund of Earnest Money Letter

At a glance

Price: Free
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.

Free

Documents are free. Kits are free during our launch.

Free: up to 5 documents a day.

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

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.

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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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.

Request Stamp Paper

Sample preview — placeholder answers, not your data

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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.

This letter records the return of earnest money. It does not by itself cancel a registered conveyance or waive claims beyond the scope stated above.

PERSONAL DATA NOTICE

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

Personal data in this document is collected only to record and evidence refund of earnest or token money on the cancelled property transaction, 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.

Data minimisation: this document does not collect a full Aadhaar number, an Aadhaar-card copy, a password or bank credentials, and none should be written into it. Use only transaction references and identity particulars genuinely required for the stated purpose.

Personal-data instruction: I consent to the collection and use described in the Personal Data Notice.

Record-holder: Kagaznama

SIGNATURE

______________________________
Signature
Refunding party: Harpreet Singh
Place: ____________________
Date: 1 April 2026

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.

See the full position on stamp duty, registration and witnesses

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

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

See the full position on stamp duty, registration and witnesses

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

Free.

Documents are free. Kits are free during our launch.

Does the Refund of Earnest Money Letter need witnesses?

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

See the full position on stamp duty, registration and witnesses

Often needed with this document

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