In This Post:
– What is Token?
– What is Bayana?
Owning a property has a lot of perks. You can either live in the house, rent it out or sell it when you see a profitable deal. If you are planning to sell property, you should first look at the real estate market. Do your research and find out the value of your property.
It is recommended to set your price a little higher than the market rate. When someone is the owner of a property, they basically own the title of the property. If you want to transfer property, it basically means to give the title of the property to someone else. It does not always mean selling the property. It could be a gift, mortgage or lease.
Now, who is eligible to transfer property? The answer is simple. Whoever is old enough to have a national identity card (CNIC) — 18 years and above. There are also different laws for buying and selling property in Pakistan. We shall now discuss in detail the concepts of token money and bayana.
Token
So, what is token money? Token is a small amount of money that has to be paid by the buyer as an indication of serious intent to purchase a property. Token money is paid on mutual agreement between the buyer and seller about the selling price. In most cases, the deal is facilitated by an agent, who possesses the verified contact details of the seller.
If you are dealing with an agent who is registered with the respective society where a property is located, the agreement details are written on the agent’s letterhead. This includes information about the token money, the name of the buyer, plot number, name, the size and price of the property, and the time frame in which the buyer has to make the remaining payment. Now, the next question you may ask is whether token money is refundable or not?
There are two types of token: conditional and confirmed.
Conditional token
The token given and received on soft terms and conditions is a conditional token. When a buyer decides to acquire a certain property, they offer a small amount ranging from PKR 25,000 to PKR 100,000. If, for some reason, the deal falls through, there is no penalty and the same amount is returned to the buyer.
After paying the conditional token amount, the buyer then can verify the ownership of the property from the respective housing society to make sure the seller is the actual owner. For this step, the seller grants permission in writing, which allows the respective authority to share the ownership details and legal status with the buyer, whose name and CNIC number is also mentioned on the application. A copy of the plot owner’s CNIC is attached to the application.
Confirmed token
Documented token money, in which the terms and conditions are mutually set between the buyer, seller and the agent (if there is an agent mediating), is called the confirmed token. This agreement includes terms such as the time frame in which the bayana needs to be paid, the selling price of the property and the penalty in case one of the parties backs out. If the buyer fails to meet the bayana deadline, he loses his token money; if the seller backs out from the deal, he is legally bound to pay double the amount of the token money to the buyer.
If the buyer is in a position to purchase the property at hand within a week or two, the confirmed token also acts as the bayana. The confirmed token is usually an amount higher than conditional token and less than the bayana. So, once the token amount is paid, bayana is the next step. It’s just like the token money, only that it is officially written and signed.
Bayana
Bayana is a formal agreement written on stamp paper with related conditions set by both the buyer and the seller. It is usually paid one week after the token money. Terms include the time frame for the property transfer and the payment of the remaining amount, which is often between 10 to 30 days but can be more.
Ideally, the bayana amount should be one-fourth of the total price. The longer the time frame to clear the remaining amount, the higher the bayana. During this time, the seller applies for the No Demand Certificate (NDC). This certificate is given by the respective housing authority in the presence of both parties. The property is transferred right away and the seller receives the bank draft.
If the deal falls through after the bayana due to some problems on the seller’s end, they are legally bound to pay double the bayana amount as penalty. If the buyer backs out, they lose the bayana amount.
Popular housing societies and security measures for sellers
DHA Karachi is a popular housing society. It recommends sellers to include a special clause in the agreement according to which if the buyer fails to make the balance payment within the due date, then the seller can confiscate the advance money. In the same way, if the seller refuses to transfer the property, then they will be liable to return double of the advance (bayana) received.
As per DHA Karachi’s guidelines, even if sellers sign the agreement in front of DHA’s designated officer, they own the property unless documents are officially transferred. In case of a dispute with the buyer, the property can again be revalidated in your name within the specified period. However, you can not claim over the property, once you have transferred the documents to the buyer. For more details, you can also take a look at how to sell and buy property in Pakistan.
Remember, buying and selling property involves a lot of risks. Make sure to go over our guide to avoid common real estate scams. If you are looking to buy property in the country, then check out these areas in the major cities of Pakistan such as Karachi, Lahore, Islamabad and Peshawar. For similar tips and information, stay connected to Zameen Blog, the best property blog in Pakistan.
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Thanks Samra; very useful info.
Highly appreciate if you could summarize the buying process (steps involved along with timeline) for various famous societies like DHA,Bahria,Lake city,LDA etc. in your coming blogs.
Filhal ap selling process check karain:
http://www.zameen.com/blog/a-step-by-step-guide-to-selling-your-property.html
Informative,thanks for this.
But i have a question , that due to security matters as agents creates hurdles after bayana and delays the slae purchase matter by unfair means , so to avoid this if some one opts for not taking bayana or token money , only optsfor the transfer of property/Registery directly , and gives free hand to buyer to verification of the property ownership.Does it makes sense and is it going like this in market ..
Nice Question. Can anyone please respond on this question ?
I am in the same situation.
Sir i want to know that i gave a token money to purchase a plot in Bahria Enclave Rs.25,000/- but unfortunately the deal could no be completed due to some reason the seller did not agree to retuned my amount what should i do kindly guide i requested seller to return my token first he promised to return when he is able to manage but after my repeated calls he refused to pay back. kindly guide
have u got any thing in written
who was the middle man
the amount is not big but make sure you tell him that you will de fame in the housing scheme or you threaht him that you will lodge a complain at local police station
thank you basra sahb.
How to confirm the legal ownership of the seller??
What authorities to consult in this regard?
ask for orignal papers simple if you are getting into a deal get its photo copies and verfiy it from housing scheme.
You can check it here: http://www.zameen.com/blog/a-step-by-step-guide-to-selling-your-property.html
Hi,
i want to know that if i have receive 3 lac as a bayana, and the plot is for 26 lac and now i want to backout what is the steps? and do i have to pay legally any penelty?
Its depend on the sale deal if it is on the terms terms and condition of the agreement
Hi Samra, quick question. i have recieved bayana for a sale, now the seller can’t complete sale and wants to sell to someone else who will pay me. is this against the bayana agreement, as we have an agreement with the original seller and not this new person who i have no agreement with???
Assalam-o-Aalikum
Hi, I saw an Ad on zameen.com and contacted the dealer, who confirmed the deal and we paid a confirmed token for the said property and got a receipt on the letter head of the property advisor.
He was supposed to apply NDC for the plot. Now after a week almost. He is backing out and informed us that the deal cannot be executed. He is not ready to pay the double amount of token remedy as well. What could be done more before filing a suit?
Can anyone help me that i was going to give bayana of a plot on allotment but when i went to courts for written stamp paper, the owner of the plot did not come, only property dealers came and said we are responsible for this plot and you can write down stamp paper on our behalf and name … the stamp vendor was my friend he said this stamp should be from seller to purchaser otherwise its not legal document… i said to property dealer that we will not give you the bayana amount we will direct purchase the plot from owner of the plot after verification the all documents from housing authority..
My questions are:
what documents of allotment plot should be verified and how?
Is this right decision what i took, said above?
How can we secure from fake allotment of plots?
Bundle of thanks in advance if anyone help me out please…..
dear
if the deal is cancelled from seller side what are the legal problems faced to seller.
5 lac token is received with all particulars written on plain paper with signs. total price is 3 core and to paid in 2 months. now after 2 days of token, seller wants to cancel the deal and buyer do not accept it and is causing big issue. what is the best step to solve this and legal rights of buyer.
The penalties imposed on seller for cancelling the deal are according to the terms and conditions signed on the paper.
Hello. I am a seller of plot in DHA and got a token 50K from a purchaser through a dealer. The dealer never signed any terms on his office letter head. He just shared the deposit slip of 50K with me. I also sent him my NIC copy and forms signed to get the property verified from DHA. DHA didnt verify it as signature didnt match their record. In the meantime I got a better offer from another purchaser. Can I cancel the first deal and return the token money as I didnt have written agreement and sell it to the new purchaser?
On moral grounds, you shouldn’t do that. Also, you have signed get property verified for selling it. Cancelling the deal can be problematic.
I have given 1 lakh rupees to a builder as advance and he has given me a receipt of his own firm. Now I want to decline the deal as he made false commitments regarding the property. Can I get my advance back if no legal document has been signed by me.
I gave an amount of 1 million against a property at bahria town, although their was no contract made between me and the seller except for a letterhead which stated the amount received and the time duration at which full payment would be done by the agent himself. I insisted my agent to sign a contract between the seller and the buyer that was me but he delayed it telling me to pay some more money if i wanted a signed contract from the seller.
Now i recently cancelled the deal and demanded back my money which he refused to return.
Is their any law related to this situation where no contract have been signed.