When it comes to buying and selling property, one of the most important steps is the payment of a token – a small amount of money that indicates a buyer’s serious intent to purchase a property. But what exactly is a token, and how does it work in the world of real estate?
In this blog post, we’ll take a closer look at the concept of token payments, and explore how they can help to facilitate successful property deals.
A token, also known as Bayana in Hindi, is a small payment that is made by a buyer to a seller as an indication of their serious intent to purchase a property.
This payment is typically made on mutual agreement between the buyer and seller, and is facilitated by an agent who possesses the verified contact details of the seller.
There are two main types of token payments that are typically made in real estate transactions.
The first is a Bayana payment that is made after a verbal agreement has been reached between the buyer and seller. This payment is usually around 1% of the deal value, and is made as soon as the parties have struck a deal. In the absence of any documentation, no penalties are owed if the deal falls through. Such a scenario would typically result in the seller returning the money to the buyer.
The second type of token payment is made after initial documentation has been completed. This includes things like the execution of an agreement to sale or agreement to sell. Under existing laws, this document, which serves as the basis for the future transaction, must be registered by the parties concerned. After signing this document, the buyer will typically pay another part of the deal value, usually between 10% and 30%, as an advance or Bayana. The remaining amount is then paid to the seller during property registration.
It’s important to note that token payments, also known as Bayana, are not the same as down payments. A token payment is a small, non-refundable payment made by the buyer to the seller, indicating the buyer’s serious intent to purchase the property. A down payment is a larger, refundable payment made by the buyer to the seller, typically as a percentage of the purchase price.
Token payments, also known as Bayana, are an important part of the real estate buying process. They serve as a sign of a buyer’s serious intent to purchase a property, and can help to facilitate successful property deals.
Whether you’re a buyer or a seller, understanding the concept of token payments is crucial to navigate the property market successfully.