Token money (bayana) in a Delhi property deal: how it works

How much token money to pay, what document to sign, and how to protect yourself if the deal falls through.

Token money — bayana — is the first payment a buyer makes to show commitment. It reserves the property while documents are checked and the agreement is drafted.

How much?

There is no fixed rule. In South Delhi, a token of a few lakh rupees up to around 1–2% of the price is common, followed by a larger payment at the agreement to sell.

Document it

Always get a signed token receipt that states:

• Names of buyer and seller, and property details
• Total agreed price
• Token amount and mode of payment
• Timeline for the agreement to sell and sale deed
• What happens if either side backs out

Pay by bank transfer

Never pay token money in cash. A bank transfer creates a clear record.

If the deal breaks

• If the seller backs out, buyers usually expect the token returned, sometimes doubled, depending on what was agreed.
• If the buyer backs out without cause, the seller may forfeit the token as agreed.

Before you pay

Look at the title documents first — at least the latest sale deed and the chain. Our buying checklist lists what to check.

A sample token receipt

A token receipt should include:

• Date and place
• Full names, addresses and PAN of buyer and seller
• Property address and description, including floor, plot size and parking
• Total sale price and the token amount, with transaction reference
• Date by which the agreement to sell will be signed
• Consequences if either party withdraws
• Signatures of both parties and, ideally, two witnesses

Token vs earnest money

The token reserves the property. The larger payment at the agreement to sell is often called earnest money. Both should be clearly linked to the total price in writing.

Tax points

TDS under Section 194-IA applies to each instalment, including the token, if the total price is ₹50 lakh or more. Read TDS on property purchase.

Frequently asked questions

Can I pay token money to the broker? Pay directly to the seller's bank account, never to an intermediary.

How long should the token period be? Two to three weeks is typical for document checks and drafting.