Factors to consider while making a token payment for a property | By ResaleAdvisor

Pay attention, my friend, purchasing property is no laughing matter. There are a lot of considerations that must be taken into account. It is important to be financially responsible or seek the help of a trustworthy person to guide you through the process.

If you are interested in purchasing a property in Delhi, or any other city, it is essential to have a thorough understanding of the legal process. For example, when booking a property, you will need to pay a token amount. For more information visit  www.resaleadvisor.com 

Here are some things to keep in mind when making a token payment:

1. Keep evidence of the payment

You must provide evidence that you have paid the token money. Without proof, it can be difficult to prove that payment has been made. Therefore, it is important to have a receipt or memorandum of understanding (MOU) to show that payment has been made. For more information visit  www.resaleadvisor.com 

 

Ensure that the following information is included when signing a Memorandum of Understanding:

• The document must include the full name and complete address of both the buyer and the seller, along with a valid proof of identification such as an Aadhaar Card or PAN Card (preferably PAN Card).

 

• The official documents of the property must contain all the details about the property, including the floor number, the area of the flat, and the amenities available at the time.

• Payment Details: The receipt for the MOU should include the time of payment, the amount of token money paid, and the method of payment (online or offline).

 

• Timeline: The property papers must clearly indicate the exact dates when payment was made by the seller. The complete timeline of the payments should be specified.

 

• Clause of Termination: The termination clause must be included in the document in order to specify the terms and conditions regarding the termination of the agreement. If the agreement is terminated by the seller, the buyer will be entitled to a refund. Conversely, if the agreement is canceled by the buyer, they will be liable to pay a penalty.

2. Be aware of your rights when making a token payment.

The seller of the property cannot resell the property if they have taken token money from any individual. This is due to the prevalence of fraudulent activities, wherein the seller accepts the token money from one party and then sells the property to another.

 

If an untimely event such as the death of either party occurs, the rights associated with the property transfer will be passed on to their legal heir. In the event of the seller's passing, the legal heir has the choice to return the token money or transfer the property to the buyer. The token money is the initial payment made to the seller to secure the property and is only a fraction of the total amount of the transaction. For more information visit  www.resaleadvisor.com 

 

3. Pay the token amount with witnesses present.

It's wise to be cautious. Be sure to pay the token money in the presence of witnesses. Have the papers of the agreement signed by at least two witnesses. Having other people present when you receive the receipt can provide authentication of the deal in the event of any disputes between the seller and the buyer. For more information visit  www.resaleadvisor.com 

 

4. Try to avoid paying the token money in cash

Arranging a large sum of money can be a complex task. Having a bank involved in the transaction is beneficial for both the buyer and seller, as it will save time and energy. Taking the cash out of the equation is a great way to ensure that both parties are satisfied.

For the seller, it would be ideal to receive the token money through an online transaction. This would be more secure than an offline transaction. Try to negotiate for a lower token money amount that both the buyer and seller can agree on. For more information visit  www.resaleadvisor.com 

 

Conclusion 

Before parting with your money, it is important to take the necessary steps to protect your interests. Before making the payment for the property, make sure you have the appropriate documentation to support your purchase. Read the agreement thoroughly and understand the terms and conditions to avoid any future complications. Ensure that you have proof of payment in writing to safeguard yourself from any untoward incidents. For more information visit  www.resaleadvisor.com