![]() No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. These articles, the information therein and their other contents are for information purposes only. If you pay the token money through banking channels, the seller would not be able to prove otherwise. ![]() See also: COVID-19: How to accept token money online?Īscertain the credibility of the seller before paying the token money and avoid making the payment in cash. For example, it could be risky to pay the token money, unless the bank has approved your home loan application. The buyer and the seller enter into a registered contract, only when the buyer pays at least 10% of the deal value and a builder-buyer agreement or an agreement for sale is signed between the two parties.Īs there is hardly any way to ensure refund of the token money, in case the property purchase fails, the buyer must keep the token amount as low as possible and commit to a seller, only after making all monetary arrangements to complete the transaction. However, as this document does not have a legal validity, because it has not been registered, it mostly acts as a proof of payment, rather than a legal document that could be produced in court, in case of a dispute. However, a notarised document would come handy, as proof that the token money has been paid to the seller and also lay the ground rules for the purchase,” says Manoj Kumar, a Delhi-based lawyer who specialises in property registrations. At this stage, most buyers fail to pay attention to the paperwork, since it seems like an unwanted hassle. ![]() “The token amount is usually paid by the buyer to the seller, directly after the verbal commitment. If, for any reason, the buyer fails to complete the transaction, the seller would forfeit the token money, unless the parties have made a notarised agreement stating otherwise. The down payment is the amount you pay upfront to buy a property. It is pertinent to note here that the token amount is only a part of your down payment and the two terms cannot be used interchangeably. So, if a buyer plans to pay Rs 10 lakhs from his own pocket for the purchase of a property that is worth Rs 50 lakhs, he would typically give the developer Rs 1 lakh as the token or booking amount,” explains Gaurav Singhal, a Delhi-based property broker. “A buyer pays a part of his down payment for the property as the token money, in case he is buying the property from a developer. ![]() There are no fixed rules pertaining to the amount that the buyer has to pay to the seller, as token money. How much money has to be paid as token amount? ![]()
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