Property Token Money Receipt (India)
PROPERTY TOKEN MONEY RECEIPT
(Earnest Money / Advance Receipt)
Indian Contract Act 1872
Date: [Receipt Date]
Place: [Receipt Place]
I / We, [Seller Name] (Aadhaar: [Seller Aadhaar], PAN: [Seller PAN]), residing at [Seller Address] (hereinafter the "Seller"), hereby acknowledge the receipt of the sum of [Token Amount] (Rupees [Token Amount Words]) from [Buyer Name] (Aadhaar: [Buyer Aadhaar], PAN: [Buyer PAN]), residing at [Buyer Address] (hereinafter the "Buyer"), as token money / earnest money towards the proposed purchase of the following property:
PROPERTY:
[Property Description]
AGREED TERMS:
Agreed Total Sale Price: [Agreed Sale Price]
Token Money Received: [Token Amount] (Rupees [Token Amount Words])
Mode of Payment: [Payment Mode]
Payment Reference: [Payment Reference]
The parties agree to execute the formal Agreement to Sell (Baina Patra) on or before [Agreement Deadline] at the agreed sale price of [Agreed Sale Price].
DEFAULT CONSEQUENCES: (a) If the Buyer fails to proceed with the purchase or defaults in executing the Agreement to Sell by [Agreement Deadline], the Seller shall be entitled to forfeit the token money received herein. (b) If the Seller fails to proceed with the sale or defaults in executing the Agreement to Sell by [Agreement Deadline], the Seller shall refund double the token money (i.e., ₹[Token Amount] x 2) to the Buyer, without prejudice to the Buyer's right to specific performance of the sale under Section 10 of the Specific Relief Act 1963.
The Seller undertakes not to sell, mortgage, encumber, or negotiate the sale of the above Property with any other person until [Agreement Deadline].
Seller
________________
Signature
Buyer (acknowledged)
________________
Signature
Witness
________________
Signature
What Is a Property Token Money Receipt (India)?
A Property Token Money Receipt in India confirms in writing that the recipient has received what the document specifies.
Token money (also known as earnest money, baya, bayana, or advance) is a common practice across all property transactions in India — residential and commercial, urban and rural. The receipt documents the fundamental terms of the intended purchase: the property being purchased, the agreed total sale price, the amount paid as token, and the timeline and conditions for execution of the formal Agreement to Sell.
While a token money receipt is a legally binding preliminary agreement under the Indian Contract Act 1872, it is not a substitute for the registered Agreement to Sell, which should be executed within the specified timeframe. The receipt establishes the consequences of default — typically forfeiture of the token money if the buyer defaults, and refund of double the token (or specific performance) if the seller defaults.
In the context of private developer flat purchases, the booking amount receipt is the equivalent of the token money receipt — it acknowledges the initial payment and confirms the allotment of a specific unit. Under RERA 2016, Section 13 limits the booking amount (application fee and advance) that a developer can collect before executing a registered Builder Buyer Agreement to 10% of the unit's cost.
Parties executing a Property Token Money Receipt (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date.
When Do You Need a Property Token Money Receipt (India)?
You need a Property Token Money Receipt at the very beginning of a property transaction — as soon as the buyer pays any advance or token amount to the seller, however small. Even a small token payment (₹1 lakh or less) should be documented with a proper receipt to protect both parties.
As a seller, you need to issue this receipt to acknowledge the token money received and to establish your right to forfeit it if the buyer subsequently defaults on the purchase. The receipt creates a clear record of when the token was paid, what property it relates to, and what the agreed price is — preventing the buyer from later claiming a different price was agreed.
As a buyer, you need this receipt to document your payment and to establish the seller's obligation to sell the property at the agreed price. The receipt is your evidence of the seller's commitment and the basis for your specific performance claim if the seller backs out.
You need this receipt to trigger the countdown to the Agreement to Sell — the receipt should specify the date by which the formal Agreement to Sell will be executed. This timeline discipline confirms both parties move promptly to the next step rather than leaving the transaction in an informal state indefinitely.
You need this receipt as part of the property purchase documentation chain, which ultimately terminates with the registered sale deed. Banks and legal advisors reviewing the title will want to see the complete chain: token money receipt → Agreement to Sell → sale deed.
Parties in India should prepare a Property Token Money Receipt (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations.
What to Include in Your Property Token Money Receipt (India)
A thorough India Property Token Money Receipt should contain the following key elements.
Date and Place: Date of receipt of token money and city/place.
Seller Details: Full name, address, Aadhaar number, and PAN number of the seller(s).
Buyer Details: Full name, address, Aadhaar number, and PAN number of the buyer(s).
Property Description: Full address and description of the property for which the token money is paid — including plot/flat number, building name, locality, city, state, and PIN code.
Agreed Sale Price: The total sale consideration agreed between the parties in INR (₹), both in figures and words.
Token Amount: The exact token money amount received in INR (₹), in figures and words.
Mode of Payment: Whether paid by cash, cheque (with cheque number, bank, date), demand draft, NEFT, RTGS, or UPI (with transaction reference).
Balance Amount: The balance of the sale consideration remaining to be paid after the token.
Timeline for Agreement to Sell: The date by which the parties agree to execute the formal Agreement to Sell (Baina Patra).
Property Off Market: Seller's commitment not to sell or negotiate the sale of the property with any other person until the specified date.
Default Consequences: If buyer defaults — token forfeited. If seller defaults — refund of double the token amount (or specific performance at buyer's option).
Seller's Signature: Original signature of the seller acknowledging receipt.
Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Token Money Receipt (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/real-estate/purchase-sale/property-token-money-receipt-india
"Property Token Money Receipt (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/real-estate/purchase-sale/property-token-money-receipt-india.
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title = {Property Token Money Receipt (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/real-estate/purchase-sale/property-token-money-receipt-india}},
note = {Free legal document template. Based on Transfer of Property Act, 1882}
}Frequently Asked Questions
Token money (also called earnest money, booking amount, or advance) in a property transaction in India is a sum of money paid by the prospective buyer to the seller to demonstrate the buyer's serious intention to purchase the property and to secure the seller's commitment to hold the property off the market while the transaction is being formalised. The legal nature of token money in India is governed by the Indian Contract Act 1872 and the Transfer of Property Act 1882. Token money is not a part payment of the purchase price in the strict legal sense — it is a sum given as security for the performance of the contract. Under Section 74 of the Indian Contract Act 1872, where there is a contract and one party fails to perform, the other party is entitled to receive from the party in default reasonable compensation not exceeding the penalty stipulated in the contract. Refundability of token money depends on who defaults:
(1) If the buyer defaults (refuses to buy or fails to pay the balance within the agreed time): The seller is typically entitled to forfeit the token money as compensation for taking the property off the market, the inconvenience caused, and any loss suffered. This should be expressly stated in the token money receipt or the subsequent Agreement to Sell.
There is no legally prescribed amount for token money in Indian property transactions. The amount is a matter of negotiation between the buyer and seller and varies significantly depending on the type, location, and value of the property, as well as local market practice. Typical token money amounts in India:
(1) Residential properties (resale): For a resale residential flat or house, token money is typically 1%–2% of the total sale price, or a round figure (e.g., ₹1 lakh, ₹2 lakhs, ₹5 lakhs). In high-value markets like South Mumbai, Bengaluru's prime areas, or Gurgaon's Cyber City, token money for a ₹2–5 crore flat might be ₹5–10 lakhs. (2) Under-construction flats from developers: The booking amount (equivalent to token money) is typically ₹50,000–₹2,00,000 for a standard residential unit, with the understanding that the formal Builder Buyer Agreement (and the payment of up to 10% of the consideration) follows within 30–45 days. Under RERA Section 13, the developer cannot accept more than 10% of the cost before executing a registered agreement. (3) Commercial properties: Token money for commercial properties tends to be higher in absolute terms — typically 2%–5% of the sale price. (4) Land and plots: Token money for agricultural land or large plots is often negotiated as a percentage (1%–5%) of the total land value, with the balance paid in tranches as due diligence is completed.
Yes, a token money receipt for a property transaction in India is a legally binding document under the Indian Contract Act 1872, provided it satisfies the requirements of a valid contract: offer and acceptance, consideration (the token money is the consideration), capacity of parties, and lawful object. The token money receipt, when properly drafted, constitutes an offer by the buyer to purchase the property at the stated price and an acceptance by the seller to sell at that price, evidenced by the receipt of the token money. This creates a binding preliminary agreement between the parties. However, a token money receipt alone is typically not a complete Agreement to Sell — it records the basic terms (price, property description, token amount) but usually does not address all the terms that a proper Agreement to Sell would cover (payment schedule, conditions precedent, default consequences, title warranty, etc.). The parties are expected to execute a formal Agreement to Sell within the timeframe specified in the receipt. If the seller, after receiving the token money, refuses to proceed with the sale and does not refund the token money, the buyer can file a suit for: (a) recovery of the token money; (b) specific performance of the agreement to execute the Agreement to Sell; or (c) damages under Section 73 of the Indian Contract Act 1872. Registration of a token money receipt: A simple token money receipt recording a preliminary payment is generally not required to be registered under the Registration Act 1908.
A Property Token Money Receipt (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Transfer of Property Act, 1882 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Property Token Money Receipt (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. However, seeking independent legal advice from a qualified Indian lawyer is recommended where the matter involves substantial value, complex facts, or cross-border elements. A lawyer can confirm the document is correctly drafted, identify risks specific to the situation, and ensure it meets all applicable requirements. Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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