Advance Payments While Buying a Home

Kishan Thakkar K

The advance payment for the purchase of an apartment ensures the buyers’ interest during the negotiation process. It is one of the most important factors when it comes to negotiating a real estate deal.

A real estate developer may request advance payment in the form of various forms for the purchase of the property. Other supplementary costs include legal fees associated with transferring the asset to the buyer.

Booking Amount or Token Money

Often, developers do not discuss the terms or conditions of the property transaction unless they are certain the buyer is serious about purchasing the property. To make sure the buyer is serious, sellers may ask for documentation proving the buyer’s seriousness about the property purchase, as below: 

  • Goodwill deposit
  • Booking amount
  • Token money
  • Bayana
  • Earnest deposit

As you can see, these terms all mean one thing: advance payment. A buyer needs to pay a certain amount to show their willingness to purchase. Usually, a seller will require an amount between Rs. 50,000 and Rs. 1 lakh as a token payment.

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