Bayana Agreement ( बयाना समझौता ) for Land and Properties in Himachal Pradesh
Meaning of Bayana
बयाना – ( हिंदी में ) पेशगी , अग्रिम राशि , ( In English ) Earnest , Imprest Money , Token money .
What is Bayana Agreement ?
Bayana Agreement is an agreement written on stamp paper with terms and conditions agreed by both parties ( Seller and Buyer or Seller and Property Dealer / Real estate agent ) .
Main Parties involve in Bayana Agreement.
Seller – Legal Owner ( as per revenue record and Jamabandi ) who is interested to sell his / her land and property.
Buyer – who is interested to by concerned land and property.
Property Dealer / Real Estate Agent – who enters into an agreement with seller for further sale of concerned property /land to his / her client for gaining profit.
Witness – one witness from both sides of the parties ( Buyer and Seller ) for validating the terms and conditions.
Bayana Agreement with Buyer
When buyer finds the desired land /property which would satisfied his/her need and requirements. After conducting the due diligence of legal title and possession of concerned property, the negotiation between the buyer and seller come to final sum of money against the property. But cannot register the concerned property with immediate effect due to fund arrangement or any other valid reason. In this situation the buyer wants to secure his desired property for further sale by seller, he /she will enter into Bayana Agreement with Seller by paying token money and in exchange receive the reasonable time period to register concerned property in written form.
Bayana Agreement with Property Dealer / Real Estate Agent.
When Property Dealer / Real Estate agent finds a property /land suitable to sell entirely or through plotting to his / her clients. Seller agrees to sell concerned property or land on a specific amount and set time period and enter into an Bayana agreement with Property Dealer / Real Estate agent. Through this agreement, Property Dealer / Real Estate agent will market the property land on behalf of Seller. Property Dealer / Real Estate agent can receive token money from third party on behalf of seller only when this clause will be mentioned in Bayana Agreement. But eventually , on the time of registration of property or land real owner will be present before tehsildar /registrar for fulfill the legal formalities as per Govt Rules. Property Dealer / Real Estate agent will not be eligible to sell land through Bayana Agreement.
Type of Bayana Agreement
There are two kinds of Bayana Agreement – Conditional and Confirmed.
Conditional Bayana
In case of properties specially in lands , so many Government’s rules use to apply such as in Urban area or special development areas the permission for subdivision required from concerned authorities. Sometimes sellers promise to provide specific facilities and special arrangement to buyer in between time period or resolve minor issues in written form. Any kind of specific condition not general, set by buyer to seller to fulfill before registration of property , in this case this Bayana Agreement will be consider Conditional Bayana. For example , provide motorable road upto plot or land , provide NOC from concerned authority or person to complete any kind of construction work , resolve partition , demarcation and bank mortgage issue etc.
Confirmed Bayana
In this Bayana Agreement, everything is confirmed and treat as General Bayana Agreement. Only two terms dominate this agreement as following .
- If buyer fails to register the property and land in stipulated time period, token money paid by him will be consider null , means seller will not repay money to buyer.
- If the seller sells the concerned property and land before the stipulated time period mentioned in Bayana Agreement to third party, in this case seller has to pay double of the token money paid by buyer.
When to enter into Bayana Agreement ?
For Buyer – Before enter into Bayana Agreement after the completion of due diligence , confirmation of each aspects from Patwari or concerned revenue officers, negotiation the price ,decided time period and also confirmation of possession status of land /property.
Note , To be careful : Buyer can take confirmation and remarks from neighborhood for satisfaction but do not consider received information as truth because neighbor are generally pass false and conflicting information so that concerned property /land should be stuck. Buyer has to cross check received remarks with owner , seller , appointed agent , revenue officer , concerned patwari and then take the final decision.
For Seller – Before enter into Bayana Agreement , Seller has to cooperate the buyer to satisfy each doubts and nothing should be hide about any issue raised related to land /property. If any issue involve in land , first of tell to buyer and then say yes to enter into an agreement.
