Bayana Legal Provisions And Other facts About It

Bayana: Is It Legal And Some Other Legal provisions

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Admin 20 Apr 2024 3,474 Views

Purchase

When a buyer and seller land on the same page, and reach a common ground in terms of verbal agreement regarding the purchase of a real estate property then they get started with the process of the contract. In simple terms, it's time for both of them to make things official via a written piece of paper. The two parties can officially start the paperwork related to the deal cracked whenever everything is clear between them.
The signing of the document is one of the most vital steps in the process of finalizing the deal of the property for real. This agreement between the seller and the buyer is also known as a sale agreement or agreement to sale. In a large majority of Indian states such as Uttar Pradesh, Bihar, Jharkhand, Rajasthan, Delhi, Haryana, and Punjab this agreement is called the Bayana agreement.

What is Bayana?

Let's first gain a better understanding of the word Bayana. The term Bayana simply refers to the advance money that is paid by the buyer to the seller. The main aim of the buyer behind giving the Bayana is to show his/her sincerity and sheer intent towards the business deal to the seller in person. The buyer exhibits his/her interest in buying the property by paying Bayana to the seller and putting their clear intentions in front of the seller so that the owner of the property doesn't try to look for other buyers at the same time. The Bayana agreement consists of all the terms and conditions related to the registration of the property.

What is the difference between Bayana and token money?
There is no major difference between token money and Bayana. These two terms are basically English and Hindi versions of each other. So basically, Bayana is just the Hindi term for token money. In the procedure of purchasing the property, there are two kinds of token money or Bayana that the buyer pays to the seller and they are as follows:

1. Bayana after verbal agreement
The exact amount of Bayana can vary from place to place, in most Indian states the buyers pay 1% of the total amount of the deal as soon as the deal is final verbally. However as no kind of official documentation has been done by both parties, then none of them has to pay any penalty if the deal doesn't pan out the way they thought it to.

2. Bayana after initial documentation
This is the second type of Bayana. During this process, both sides begin finalizing the deal after the initial token money has been paid. In this case, the deal is finalized by execution of the sale agreement or agreement to sale. As per the existing laws, this is going to be the document according to which future transactions will take place so make sure to read each word of the document twice to avoid any surprises down the lane in the future.

All you need to know about the Bayana agreement

The Bayana agreement is like a blueprint for the future deal of the property for both parties. A Bayana agreement also goes by the name of an agreement to sell. This agreement includes many details along with the amount paid by the buyer to the seller. Through this document, you can easily get a clear picture of the money that has been paid by the buyer to the seller.
It's a great way to book property to your name and this way no seller can make a fool out of you as you have everything written. According to the Indian Contract Act, 1872, with the help of a Bayana agreement both the parties get legally bonded. Let me tell you one very important fact once and for all when the Bayana agreement gets signed by both the seller and the buyer, then they are supposed to follow all the terms and conditions stated in the official document.

Is Bayana counted as a legal document?

The answer to one of the hotly debated questions is a big yes. The Bayana agreement is a legal document as it comes under the Indian Contract Act, 1872. For any purpose in the future, the Bayana agreement can be shown by the parties in the court before the law as proof stating the details of the agreement that took place between them at one point in time.

Can Bayana be refunded?

I know many of you want to know the answer to this question. When we talk about the initial token money involved in the procedure of purchasing a property it can or cannot be refunded if the deal breaks due to any reason and in the non-attendance of any written document.
The advance money that has been paid to the seller post the signing and registration of the Bayana agreement has to be returned back to the buyer if the deal has been broken from the side of the seller because of any huge or small reason in the world.

Conclusion
The most important thing is that the buyer and seller engaged in a business deal must be crystal clear with each other's opinions regarding the purchase of the real estate property. After both the parties have negotiated and come to the same decision, then they can further sign the Bayana agreement to officiate their deal about a property.
Let's say for instance in any case one of the two parties comes out

About Author

Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

Bayana: Is It Legal And Some Other Legal provisions

What is Bayana?

All you need to know about the Bayana agreement

Is Bayana counted as a legal document?

Can Bayana be refunded?

Jatin Dubey

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