Paying token money, also known as "Bayana" in Hindi, is a customary initial step in property transactions across India. It signifies the buyer's earnestness and serves as a commitment towards purchasing the property. However, there may be instances where the seller decides to withdraw from the deal, necessitating the return of the token money. Here's a breakdown of the process and the legal aspects involved:
Understanding Token Money:
Token money is a nominal amount, typically a small percentage of the total transaction value, paid by the buyer to the seller as a demonstration of their serious intent to proceed with the purchase. It marks the commencement of negotiations and indicates the buyer's sincerity in acquiring the property.
Returning Token Money:
In the event that the seller opts to cancel the deal after accepting the token money, they are obligated to refund it to the buyer. This obligation is often outlined in the Memorandum of Understanding (MoU) signed by both parties. Additionally, the seller may be subject to penalties as per the agreed-upon terms.
RERA Regulations:
The Real Estate Regulatory Authority (RERA) has established guidelines to protect the interests of both homebuyers and sellers, including regulations pertaining to the refund of token money:
RERA imposes a maximum limit on the token money amount that developers can collect from homebuyers to prevent potential financial exploitation.
If the buyer decides to withdraw from the purchase, the developer must refund the token money within 45 days of cancellation, deducting any applicable booking amount.
Key Considerations for Token Money Payment:
Buyers should exercise caution and diligence when paying token money. Here are some essential points to consider:
Request a written receipt or MoU detailing the token money deposit, including essential information such as property details, payment amount, termination clauses, and seller particulars.
Whenever feasible, conduct these transactions in the presence of at least one witness to validate the legitimacy of the transaction.
Opt for secure payment methods such as bank transfers or online transactions to mitigate the risks associated with cash payments, which lack confirmation proof and may lead to legal complications.
Conclusion:
Property transactions typically involve the payment of token money as an initial commitment from the buyer. However, in cases where the seller decides to withdraw from the deal, understanding the legal rights concerning token money refund becomes paramount for buyers. By adhering to RERA regulations and adopting precautionary measures during payment, buyers can navigate property transactions confidently and safeguard their interests effectively.
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Recent comments(2)
Ravindra Govind Mane
Room booking kala hae mala cancel karayacha hae pan builder bolayo 30% pasi gatali jaie
Ravindra Govind Mane
Booking cancel kala ter builder kiti taka paise gatat