Can a seller back off from a property deal? What happens to the token money? Housing.com
Token money is the amount that a buyer pays the seller to show his interest in the property transaction. It is usually 1-5% of the total property value. This transaction is recorded by signing a notarised document that will have some legal holding. The token money is paid to a third-party ESCROW account till the property transaction is complete. This seals the deal and the buyer can start on the rest of the formalities related to home buying, such as applying for a home loan and preparing registration documents
