The Bayana agreement, also known as the agreement to sell, is a legally binding document in India. Let’s explore its validity and significance:
What is Bayana?:
- Bayana
(बयाना) refers to the
advance paymentmade by the buyer to demonstrate their serious intent to purchase a property.
It is often called
token moneyand is a percentage of the total deal amount paid by the buyer to the seller in good faith.
- Bayana
Types of Bayana:
- Bayana after verbal agreement
:
Paid immediately after striking a verbal deal with the seller.
Typically around
1% of the deal value.
If the deal falls through, the seller usually returns this amount to the buyer.
- Bayana after initial documentation
:
Paid during the formalization of the transaction through the
execution of the agreement to sale.
This agreement needs to be
registeredby the parties.
The buyer pays another part of the deal value as advance or Bayana (usually between
10% and 30%).
The remaining amount is paid during property registration.
- Bayana after verbal agreement
Bayana Agreement:
The Bayana agreement acts as the
blueprint for the future sale of a house.
It clearly mentions the payment made by the buyer to the seller to book the property in the buyer’s name.
Registered under the
Indian Contract Act, 1872, it is legally binding on both parties.
Once the Bayana is taken and the agreement is signed, both parties must abide by the terms and conditions stated in the agreement.
Validity:
The Bayana agreement is
valid and enforceablein a court of law, provided it meets all necessary legal requirements.
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Authors Of The Question
What is Byana aggreement validity?
Jaspal
280Views
9 months
2024-02-23T12:57:45+00:00 2024-06-28T20:33:12+00:00Comment
1 Answers
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