10 questions you should ask before paying a token amount
Protect your hard-earned savings before handing over a single rupee of advance money.
Quick Answer
Before paying a token amount, always establish: Is the token fully refundable if the title search fails or the bank rejects the loan? What is the exact agreed carpet area? Which specific parking slot is included? What is the seller's active loan balance? And what is the agreed timeline for final registration?
A simple conversation
Have a question about this step?
You don't need to have everything figured out. Just tell us a little about what you have in mind.
No spam, no broker cold-calls. We protect your privacy.
What it means for you
A token (bana / advance) signals serious buyer intent. But handing over money without clear written conditions creates unnecessary anxiety. A thoughtful seller or builder will have no hesitation answering these straightforward questions in writing.
What buyers should look at
- Refund clause: written confirmation that if legal title issues arise, the advance will be refunded within 7 days.
- Fixed consideration: confirm whether the price includes society maintenance deposits, club memberships, and parking charges.
- Payment milestones: align installment payments with bank loan disbursement stages, never in advance.
- Carpet area confirmation: verify that the RERA carpet area matches what you were shown physically.
Avoid Costly Pitfalls
Common mistakes to avoid
- Handing over cash without an official signed receipt stating the flat number and terms.
- Paying a token before verifying that your bank has approved the project for home loan financing.
- Accepting verbal promises about future possession or repairs without writing them into the token receipt.
Local Gandhinagar context
In Gandhinagar transactions, a nominal token (₹50,000 to ₹1,00,000) is standard to block a flat for 15 to 21 days while legal verification and loan paperwork are prepared. Avoid paying larger sums before the formal Agreement to Sell (Satakhat) is executed.
Frequently asked questions
Is an advance token receipt legally binding in Gujarat?
A signed receipt mentioning consideration, property details, and terms creates evidence of an agreement, but a registered Agreement to Sell provides far greater legal protection.
What happens if my bank denies my home loan after paying token?
If your token receipt includes a 'subject to loan approval' clause, the seller is obligated to return your deposit. Always insist on this clause.
What to do next
Before you hand over any advance, let us review the token terms to make sure you have a safe, clear exit if anything doesn't check out.
Tell Us What You're Looking For