Bayana equates to a deposit or a sum/amount provided as a part or initial payment for anything. This works as a form of security, especially when something is rented.
Bayana means any advance payment that has been made by the buyer, indicating his/her commitment towards purchasing any property. It is a specific percentage of the total property value or transaction amount, and is sometimes called token money as well. This is paid in good faith to the property seller by the buyer.
Bayana is often paid after a verbal agreement to buy property. This is usually 1% of the property value that is paid as the Bayana without documentation. It is also paid after undertaking the documentation process and the transaction is legally formalized through an initial agreement. The buyer will be paying another portion of the value of the deal as the Bayana or advance. This could hover between 10-30% of the value of the property deal. The remainder will be paid to the property seller at the time of registering the property in question.
The Bayana is a vital document for real estate transactions in several parts of India. It has registration under the 1872 Indian Contract Act. Both parties in the transaction have to legally abide by the provisions of this agreement. This term also means the token money paid by the buyer to the seller or a tenant to the landlord. This term is used throughout multiple States including Uttar Pradesh, Bihar, Jharkhand, Punjab, Haryana, Delhi, and Rajasthan, among others.
