Also called: Token money, Booking amount, Bayana, Advance
A small first payment from a buyer or tenant to show they are serious and to hold the property while the paperwork is prepared. It is usually adjusted against the price or deposit.
How it works and what to check
Tokens are paid before the agreement to sell or rent agreement is signed, so the terms are often only verbal. That is where disputes start: whether the token is refundable if the deal falls through, and by when the agreement must be signed.
Pay by bank transfer, get a signed receipt that names the property, the price, the deadline and the refund terms, and check the title before paying.
Common questions
Is a token amount refundable?
Only if the receipt or agreement says so, or the seller is at fault. Get the terms in writing before paying.
How much token amount is normal?
There is no rule. Keep it small until you have checked the title.