What is Byana aggreement validity?

The Bayana

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agreement

is a legal document signed between a buyer and seller during the initial stage of a property transaction. It serves as a formal commitment by the buyer to purchase the property and as an assurance to the seller that the buyer is serious about the deal. The agreement typically includes a token amount or advance paid by the buyer, which is adjusted against the final sale price. The Bayana agreement validity is usually limited to a specific period, typically 12 months. 

What is the Bayana Agreement Validity Period?

As I already said, the validity is for 12 months. However, this can be extended to 6 months. The agreement specifies the time frame within which the full payment should be made, and the formal sale deed should be executed. If the buyer does not complete the payment or formalities within this period, the agreement may become void.

A Byana agreement is enforceable if it clearly specifies the terms of the transaction, such as the total sale price, advance amount, payment schedule, and the time frame within which the property should be transferred.

If either party defaults, the buyer may lose the advance amount (if they fail to pay the balance amount) or the seller may have to refund the advance (if they fail to transfer the property as agreed).

For a Byana agreement to hold legal validity, it must be executed in writing and signed by both parties, with proper documentation, including the token amount.

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bayana agreement validity informative.

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The Bayana agreement, also known as the agreement to sell, is a legally binding document in India. Let’s explore its validity and significance:

1. What is Bayana?:

   • Bayana

     (बयाना) refers to the

     advance payment

     made by the buyer to demonstrate their serious intent to purchase a property.

   • It is often called

     token money

     and is a percentage of the total deal amount paid by the buyer to the seller in good faith.

2. 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

       registered

       by 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.

3. 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.

4. Validity:

The Bayana agreement is

in a court of law, provided it meets all necessary legal requirements.