Token Money vs. Bayana: The Legal & Financial Guide to Locking a Deal

Last Updated: December 2025|Category: Transaction Process

In the fast-moving Pakistani real estate market, a verbal promise means nothing. If you like a property, you have to put money on the table to stop the seller from showing it to someone else.

But what do you pay? A Token or a Bayana?

Using these terms interchangeably is a financial disaster waiting to happen. We have seen deals collapse and friendships end because the buyer thought the payment was 'Refundable' (Conditional) while the seller considered it 'Final' (Confirmed).

This guide clarifies the difference between Token Money and Bayana, explains the rules of refundability, and introduces the professional way to handle CDRs (Call Deposit Receipts) in high-value transactions.

1. Property Deal Process in Pakistan: From Token to Registry

To understand the difference, you must visualize the timeline of a property deal in Pakistan.

1.1 Verbal Offer

You see a house and offer 2 Crore. The seller agrees verbally.

1.2 Token Money

You pay a small amount (e.g., 1 Lakh) instantly to 'lock' the verbal deal for 2-3 days.

1.3 Document Verification

You check the papers.

1.4 Bayana (Down Payment)

You pay a large amount (e.g., 20%-25%) and sign a formal Agreement to Sell (Bayana Agreement).

1.5 Final Registry/Transfer

You pay the remaining balance and transfer the title.

Pro Tip: Token is a 'Reservation Fee' (Temporary), whereas Bayana is a 'Part Payment' (Permanent).

2. What is Token Money? Difference between 'Kacha' vs 'Pakka' Token

Token Money is a small sum paid by the buyer to show serious intent. In local dealer slang, it is often called Sai or Byana-e-Qat'i. It acts as a goodwill gesture to request the seller to stop marketing the property.

However, not all tokens are the same. In the Pakistan real estate deal process, there are two distinct types of tokens you must understand:

2.1 Conditional Token (The 'Kacha' Token)

This is a tentative payment. The buyer says: 'I like the house, but I need to talk to my father/partner first. Here is 50k. If they say no, give it back.'

  • Amount: Very small (PKR 5,000 to 50,000).
  • Refund Status: Fully Refundable. If the deal doesn't go through for any reason, the dealer usually returns the money.
  • Receipt: Often just a verbal acknowledgment or a rough slip.
2.2 Confirmed Token (The 'Pakka' Token)

This is a firm commitment. The buyer says: 'I am buying this. Stop showing it to others. I will bring the Bayana in 7 days.'

  • Amount: Moderate (PKR 1 Lakh to 5 Lakh).
  • Refund Status: Generally Non-Refundable. If the buyer backs out, the seller has the right to forfeit (keep) this money to compensate for the wasted time.
  • Receipt: A proper Token Receipt should be issued, mentioning the 'Validity Period' (e.g., Token valid for 5 days).
Pro Tip: Never accept a 'Pakka Token' without issuing a digital receipt. Using the Aiksol360 Mobile App, you can generate a branded Token Receipt instantly, ensuring the terms (Refundable vs. Non-Refundable) are clear to both parties via WhatsApp.

3. What is Bayana? (Agreement to Sell & Stamp Paper Rules)

Bayana is not just money; it is a contract. It is the formal Agreement to Sell (Iqrar-Nama) where typically 20% to 25% of the total property value is paid.

Once Bayana is signed, the deal is legally binding. The seller cannot sell to anyone else, even if they get a higher offer.

3.1 The Legal Document

Bayana is not written on plain paper. It is an Agreement to Sell executed on non-judicial e-Stamp Paper (typically PKR 1,200 to 3,000 depending on your province's value threshold).

Warning: Always check the e-Stamp Paper value before signing. Using Aiksol360, you can auto-generate a Bayana Agreement template with all client and property details pre-filled, reducing errors.
3.2 Double Penalty Rule

If Buyer defaults: Bayana is forfeited. If Seller defaults: Bayana plus equal penalty must be returned. In reality, enforcing this can take years in court; usually only the original amount is refunded.

  • If the Buyer Defaults: If the buyer fails to pay the remaining balance by the due date, the Bayana amount is forfeited. The seller keeps the money and the property.
  • If the Seller Defaults: If the seller changes their mind or refuses to sell, they must return the Bayana PLUS an equal amount as a penalty. (e.g., If Bayana was 50 Lakh, the seller pays back 1 Crore).
Inside Reality: While the Aiksol360Double Penalty is the law, enforcing it takes years in civil court. In 90% of real-world cases, the seller simply refunds the original Bayana amount if they back out. The clause exists primarily as psychological leverage to keep them honest, rather than a guaranteed payout.

4. Comparison Table: Token vs. Bayana

FeatureToken MoneyBayana (Down Payment)
StagePreliminary (Day 1)Intermediate (Day 5-10)
AmountSmall (<1% of value)Large (20-25% of value)
DocumentationReceipt (or Verbal)e-Stamp Paper Agreement
Legal PowerWeak / InformalStrong / Enforceable in Court
Refundable?Conditional: Yes / Confirmed: NoStrictly No (Unless seller defaults)
PurposeTo 'reserve' the propertyTo 'purchase' the property rights
ValidityShort term (3-7 days)Long term (30-90 days)

5. Using CDR (Call Deposit Receipt) for Secure Deals

In premium markets like DHA (Defence Housing Authority) or Bahria Town, cash tokens are becoming rare due to fraud risks. The standard now is the CDR (Call Deposit Receipt) or Pay Order.

5.1 How CDR Works

Buyer issues a Pay Order in seller's name, sends a photo to agent. Original CDR is handed over only at Bayana signing.

  • The Buyer goes to their bank and makes a Pay Order (CDR) in the name of the Seller for a specific amount (e.g., 5 Lakh).
  • The Buyer sends a photo of the CDR to the agent.
  • This photo acts as the 'Token.' It proves the buyer has the funds.
  • The physical CDR is handed over only when the Bayana Agreement is signed.
5.2 Why use CDR?

It protects the buyer. If the deal falls through before BayaBayanana, the buyer simply cancels the CDR at their bank. They don't have to chase the agent to get their cash back.

Safety Rule: Never hand over the original CDR to the agent before the meeting. Give them a photocopy or WhatsApp image to confirm your intent. Bring the original instrument only to the signing table.

6. Token Refund Policy in Pakistan: Disputes & Solutions

The most searched query in this niche is: 'Is Token Money refundable in Pakistan?' The answer is usually the cause of fights in dealer offices.

6.1 Dispute 01: Papers not clear

  • Scenario: Buyer pays a Confirmed Token. Later, they find out the property has a litigation issue or the 'Intiqal' is missing.
  • The Rule: In this case, the Token is 100% Refundable. The seller failed to provide clear title documents. A buyer cannot be forced to buy a disputed property.
6.2 Dispute 02: I found a better house.

  • Scenario: Buyer pays a Confirmed Token but finds a cheaper house the next day and asks for a refund.
  • The Rule: The Seller has the right to forfeit the token. They took their property off the market for you; the token compensates them for that loss.
6.3 Dispute 03: The Agent ate the token.

  • Scenario: The agent takes the token from the buyer but never gives it to the seller, hoping to negotiate a lower price and keep the difference.
  • The Solution: Always demand a receipt that bears the agency's official stamp.

7. The Role of Technology in Deal Security

In the old days, deals were done on handwritten slips (Parchee). Today, relying on paper receipts is a liability.

Modern agencies use Real Estate CRM software to manage this sensitive financial data:

7.1 Digital Audit Trail

When an agent collects a token, they log it in Aiksol360. The system timestamps it: 'Received 50k from Mr. Ali for Plot 45.' This prevents the 'I never received it' argument.

7.2 Auto-Expiry Alerts

Tokens expire. If a token is valid for 3 days, Aiksol360 alerts the manager on Day 3: 'Token Expiring Today. Convert to Bayana or Refund?'

7.3 Bayana Generation

The system can auto-generate a standard Bayana Agreement populated with the client and property details, minimizing typing errors in legal documents.

Conclusion

For Buyers: Never pay a token without clearly stating the condition: 'This is subject to document verification.' Use a Pay Order (CDR) for amounts over 1 Lakh to stay safe.

For Dealers: The transition from Token to Bayana is where 40% of deals fail. Stop managing this pipeline in your head. Use Aiksol360 to track every expiration date, print professional receipts, and ensure your team never forgets a deadline.

Generate your first Digital Token Receipt with Aiksol360

FAQs

Can a dealer keep the token as commission?

No. The token belongs to the Seller. However, if the deal concludes successfully, the seller often instructs the dealer to adjust the commission from the token amount.

What is the validity of a token?

There is no fixed law, but market practice is 3 to 7 days. If the buyer does not proceed to Bayana within this time, the token expires and can be forfeited.

Is a WhatsApp confirmation considered a Bayana?

While electronic messages are admissible in Pakistani courts, relying on WhatsApp for property rights is risky. Always execute a Bayana on e-Stamp Paper (value based on your province's laws).

Who keeps the CDR?

Usually, the real estate agent keeps the CDR copy, or the original is kept in 'Trust' (Amanat) by the agent until the documents are verified and the agreement is signed.

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