Token Amount Checklist: What to Verify Before You Pay

Short answer: Use this token amount checklist before any money moves: confirm the project's RERA registration, the encumbrance certificate, the khata and approvals, and a written refund if your checks fail. Under Section 13 of the RERA Act, a builder can't take more than 10% of the cost before a registered agreement for sale.

Key takeaways

10% ceiling: no more than 10% of the flat's cost before a registered agreement for sale (RERA s.13(1)).
Refunds depend on paper. RERA protects you if the builder defaults, not if you change your mind.
Four things to see first: RERA registration, EC, khata, approvals.
Red-flag clauses: cancellation deductions, forfeiture, escalation, layout changes, vague possession dates.
Our 4P token gate: pause, prove, paper, pay.

Table of contents

What is a token or booking amount, and is it refundable?
How much can a builder take before the agreement for sale?
Which documents should you see before paying a token?
Which booking-form clauses are red flags?
How should you pay, and what should the receipt say?
New launch vs resale: what changes?
Worked examples
The 4P token gate (our framework)
Printable pre-token checklist
Frequently asked questions
Talk it through with acre&key
Sources

The token is where buyers get rushed. "Only two units left, pay today." Losing a unit is better than losing your money, so run this list first. For most new launches it fits into a day; resale takes a little longer.

What is a token or booking amount, and is it refundable?

People use three words loosely. A token is the small first payment that "holds" a unit. A booking amount is what you pay with the booking or application form. An advance is any money paid before the agreement for sale. What matters is what the paper you sign says about getting it back.

If the builder later fails to hand over as promised, the RERA Act lets you withdraw and get your money back with interest and compensation, or stay and get interest for every month of delay (MoHUA RERA FAQ). Karnataka's RERA Rules say a refund with interest and compensation is payable within 60 days of falling due (Karnataka RERA Rules 2017). Our refund vs interest guide covers that route. It doesn't cover changing your mind, which is why the booking form matters.

Forfeiture clauses aren't always the last word, though. In one 2024 order reported by LiveLaw (news), Karnataka RERA told a builder to refund a full ₹1 lakh booking amount. The buyers had been rushed into signing a form with a forfeiture clause, and the builder had held the money for a year (Complaint No. 00949/2023). One order isn't a rule, so don't count on it. Fix the wording before you pay.

How much can a builder take before the agreement for sale?

No more than 10% of the cost. Under Section 13(1), a promoter can't accept more than 10% as an advance or application fee without first signing and registering a written agreement for sale (MoHUA RERA FAQ, above). The agreement must follow the state's prescribed form and sets out the payment schedule, possession date and interest for default.

For a registered project, 70% of buyers' money must go into a separate project account, used only for construction and land costs. Ask which account your payment is going into.

Which documents should you see before paying a token?

Document	Who issues it	Where to check it	New launch / resale
Project RERA registration	Karnataka RERA	RERA portal	New launch
Encumbrance certificate (EC)	Stamps and Registration	Kaveri (applications are fully digital, with e-sign)	Both
e-Khata (city areas)	GBA	e-Aasthi 2.0	Both
Form 9 or 11 (panchayat areas)	Gram panchayat	e-Swathu	Both
Title documents (previous deeds)	Previous owners, registered at the SRO	Your lawyer's title search	Both
Building approvals	Planning authority	Copies from the builder	New launch

Not every project needs RERA registration. Land up to 500 sq m, or up to eight apartments across all phases, is exempt, as are projects with a completion certificate before the Act (MoHUA RERA FAQ). If a builder says a project is exempt, ask which exemption applies. Our RERA project check shows what to download, and our answer on documents to verify before a token goes deeper.

What can you verify online yourself in a day?

EC on Kaveri: the IGR says EC applications are fully digital with the applicant's e-sign (IGR presentation).
RERA status: the "Know About Your Project" search takes a project name, promoter, application or registration number, district or taluk.
Khata: since 30 Sep 2024, e-Khata has been needed for registration, with e-Aasthi (urban) and e-Swathu (rural) linked to the registration system (The Hindu, news). Check A or B with our khata guide.
Panchayat Form 9: issued only for converted land with an approved plan, government housing beneficiaries or Tahsildar-certified gramathana property (e-Swathu FAQ).

What needs a lawyer?

The chain of ownership. A lawyer should read the previous deeds, match them with the EC and say in writing whether the seller can pass clean title. Our legal checks guide lists what that covers.

Which booking-form clauses are red flags?

Cancellation deduction. How much is kept if you cancel, and on what basis? "As per company policy" isn't an answer.
Forfeiture. Does the whole token go if a loan isn't sanctioned, or your lawyer finds a title problem?
Price escalation. Can the price change after booking without your written consent?
Layout and specification changes. Ask for the approved plan to be attached.
Possession date wording. "Tentative" with no date gives you little. Compare it with the RERA date.
Payment schedule. Tied to construction stages, or to calendar dates regardless of progress?

Before you sign the agreement itself, use our answer on checking a builder's sale agreement.

How should you pay, and what should the receipt say?

Pay by a banking channel into the account named on the builder's letterhead or booking form, never a personal account and never cash. The receipt should name the project, unit, amount, date, payment reference and receiving account.

The receipt or booking form should also say the payment is subject to your due diligence, with a full refund if your checks fail within an agreed number of days. If the builder won't put any refund condition in writing, treat that as your answer.

New launch vs resale: what changes?

Check	New launch	Resale
RERA registration	Essential, unless exempt	Usually not applicable
Advance cap	10% before a registered agreement	Not covered by the RERA cap
Title	Builder's land title and approvals	Seller's chain of deeds
Khata	Project and unit khata status	Seller's e-Khata in their name
EC	Land and project	The flat itself
Who you pay	Builder's project account	The seller, by banking channel

Worked examples

Worked example 1: the 10% ceiling

Illustrative. A flat costs ₹1,20,00,000.

Item	Working	Amount
Maximum before a registered agreement	10% × ₹1,20,00,000	₹12,00,000
Asked for at booking		₹15,00,000
Over the ceiling	₹15,00,000 − ₹12,00,000	₹3,00,000

Pay nothing beyond ₹12 lakh until the agreement for sale is registered.

Worked example 2: why the cancellation wording matters

Illustrative. You've paid a ₹5,00,000 token on the same ₹1.2 crore flat, then your lawyer finds a title problem.

Clause wording	What you could lose
"Full refund if buyer's due diligence fails within 15 days"	₹0
"Token forfeited on cancellation"	₹5,00,000
"10% of the flat's value deducted on cancellation"	₹12,00,000 claimed, more than you paid

Same token, three outcomes. Get the first wording, with the number of days, before paying.

Worked example 3: a resale token

Illustrative. On an ₹80,00,000 resale flat, a 2% token is ₹1,60,000. Put the refund condition, a date for the sale agreement and the seller's duty to clear dues in the token receipt itself.

The 4P token gate (our framework)

Step	What you do	Done when
Pause	Refuse same-day pressure	You have a date for your checks
Prove	RERA, EC, khata, approvals, lawyer's title view	Each item seen and checked
Paper	Booking form with refund condition and red flags cleared	Wording agreed in writing
Pay	Banking channel, named account, within 10%	Full receipt in hand

Printable pre-token checklist

[ ] RERA registration active, or the exemption named
[ ] EC applied for on Kaveri and read by your lawyer
[ ] e-Khata (city) or Form 9/11 (panchayat) seen and checked
[ ] Title opinion, or a written refund clause covering title
[ ] Booking form checked for cancellation, forfeiture, escalation, layout and possession clauses
[ ] Advance within 10% until the agreement is registered
[ ] Payment by banking channel into the named account, with a full receipt
[ ] Budget checked against the full cost of buying, not just the base price

This is general information, not legal or tax advice. Ask a property lawyer before paying, signing or registering, and a CA about payment and tax rules for your transaction.

Frequently asked questions

Is the token amount refundable if I change my mind?

It depends on the booking form, so read the cancellation terms before you pay. RERA gives you a refund with interest if the builder fails to hand over as promised, but changing your mind isn't covered. Get the refund terms in writing, including any deduction.

How much booking amount can a builder ask for under RERA?

Under Section 13(1) of the RERA Act, no more than 10% of the flat's cost as an advance or application fee before a written agreement for sale is signed and registered. If you're asked for more, ask for the agreement first.

Should I pay the token before a lawyer checks the title?

Only if the booking form says in writing that the full token comes back if title isn't cleared. Before paying, check RERA registration, the EC through Kaveri and the e-Khata or Form 9 yourself, then let your lawyer read the deeds and EC.

Do I need an e-Khata before I can register the flat?

In most cases, yes. e-Khata has been needed for registration since 30 Sep 2024, with the urban and rural khata systems linked to registration, as The Hindu reported. In panchayat areas, look for Form 9 or 11. Check the seller has it before paying a token.

Can I pay the token in cash?

Don't. Pay by a banking channel into the account named on the booking form or letterhead, and get a receipt with the project, unit, amount, date and reference. A clean trail protects you in a refund dispute; your CA can explain the tax rules on cash.

What should a token receipt say?

The project, unit, amount, date, payment reference and receiving account, plus a line that the payment is subject to your due diligence with a full refund if checks fail within an agreed number of days. For resale, add the date for the sale agreement.

Does the 10% RERA limit apply to resale flats?

No. Section 13 binds promoters of registered projects, so a resale between individuals isn't covered by the cap. Agree the token in writing with the seller, keep it modest, and put the refund condition and timeline in the receipt.

What are the red flags in a booking form?

Vague cancellation deductions, forfeiture of the whole token for any reason, price escalation without consent, freedom to change the layout or specs, a "tentative" possession date and a payment schedule tied to calendar dates instead of construction stages.