Ask any realtor in Faisalabad about their worst deal and the story usually starts the same way. The buyer gave some money, the seller got a higher offer a week later, and now both sides are shouting and nobody has a paper to show. Most of these fights could have been stopped with ten minutes of writing on day one.    

Token money and bayana are not the same thing    

Token money in property is the small amount a buyer hands over to say "hold this for me." It might be Rs. 50,000 or a lakh, and it usually buys a few days to check the documents. The problem is that it is often paid in cash with nothing written down.    

Bayana in property is bigger. When the two parties meet down to reach an agreement and the price is agreed upon, it is paid. It is included in the cost and shows the importance of both parties.    

There is a disagreement; a disagreement; a disagreement; a disagreement; a disagreement. Write the property details, the amount, the date, and get both signatures. Two minutes are needed.    

What a bayana agreement does    

A bayana agreement is a promise to sell, made under the Contract Act, 1872. It does not make the buyer the owner. Only a registered sale deed can accomplish so under the Transfer of  Property Act, 1882. However, the contract is still important because the buyer can take the seller to court and request that the transaction be upheld under the Specific Relief Act of 1877 if the seller refuses to finish.    

So write it properly. Put in both CNIC numbers, the  plot number and size, the scheme name if there is one, the full price, the bayana paid, and the balance. Fix a date for completion. Say clearly what happens if the buyer backs out and what happens if the seller does. Add two witnesses with their CNIC numbers. Pay by bank transfer or cheque when you can, and if cash is involved, give a receipt.    

When the deal falls apart    

Normally, a buyer who walks away for no good reason loses the bayana. A seller who walks away has to return it, and may owe the buyer damages too.    

One thing realtors often miss: courts do not like penalties. Section 74 of the Contract Act allows only reasonable compensation. If a client pays half the price as bayana and the paper says he loses everything on cancellation, a court may not agree. A smaller, fair amount is safer for everyone.    

Check before you take a rupee    

Get the latest fard from PLRA and match the name to the seller's CNIC. If someone is selling through a power of attorney, make sure it is real and still valid. Look for a mortgage, a court stay, or an earlier agreement on the same  plot . In a housing society, confirm the scheme is approved and the allotment papers are in order. And ask both sides if they are on the Active Taxpayer List, because that one answer changes the tax a great deal.    

The tax part, which clients hate    

Tell clients about tax in the first meeting, not at the registry office. These are the federal rates for this year under the Finance Act 2026.    

Stamp duty (Punjab)    

A small extra fee is also charged at the time of registration. Stamp duty is separate from the federal taxes above.    

The part people get wrong    

• Tax is worked out on the higher of the deed price or the FBR/DC value.    
• Writing a lower price in the deed does not reduce the tax if the official value is higher.    
• A client who files his return before the transfer saves real money.    

Example: Rs. 50 lakh house (assuming Rs. 50 lakh is the higher value)    

The gap between a  filer and a non-filer can be several lakh rupees on one deal, so check filer status on both sides before you fix the price.    

Rates change with every budget. Confirm current figures with FBR, PLRA or a tax advisor before quoting a client.    

How the transfer goes in Punjab    

First the stamp duty and  FBR taxes are paid through the online challan. Then the sale deed request goes into the PLRA e-registration system. The buyer, seller and witnesses still have to appear in person once. After registration, the buyer should apply for mutation, which is the intiqal.    

Plenty of clients think they are finished once the deed is signed. They are not. Until the mutation goes through, the revenue record does not show the new owner. That becomes a headache later, when the buyer wants to sell or take a loan against the property.    

A few habits worth keeping    

Keep copies of everything: receipts, challans, CNICs, even the WhatsApp messages where the price was agreed. Do not leave a bayana agreement without a completion date, because open-ended deals are where sellers change their minds. And if the deal is large or has anything odd in it, tell your client to spend a little on a property lawyer. It costs far less than a case.    

Property buying and selling in Pakistan still runs mostly on trust. But trust holds up better when there is paper behind it, and clients remember the realtor who kept them out of court.