Bayana is the signed agreement on a stamp paper with conditions set by the buyer and seller. It is most commonly made after one week after the token amount payment. The conditions include the time-frame of the ownership transfer between the buyer and seller and the payment of the remaining amount (usually paid within 30 days).
Bayana, like a token, is paid by the buyer to the seller and is meant to show the intent and willingness of the buyer to actually buy the property. The purpose of Bayana is to allow the buyer to procure finances for the purchase. However, unlike a token, it follows the contract and the terms and conditions about the bayana are usually a part of the contract.
It is also the contract which determines what happens to the bayana if the deal falls through. In the case, if the deal falls through after the bayana due to some problems on the seller’s end, they are legally bound to pay twice the bayana amount. If the buyer backs out then they lose the bayana amount.
During this time, a Statement of Dues (SOD) is generated by the relevant society which shows the remaining outstanding dues that must be paid before the transfer. Next, the seller applies for the No Demand Certificate (NDC). The NDC is provided by the society which shows that the seller has no other demands.
Token money and bayana are two very similar yet different things, however, in some situations, they are considered the same. Keep in mind that each society has transfer methods that are different from each other.