Questions to ask before paying token money

Token money is where negotiation ends and commitment begins

Token money is usually small and usually non-refundable. Its real function is to stop you from continuing to check. Ask everything below before it is paid, because afterwards your position weakens and your appetite for bad news falls.

About the property

• Which authority approves this scheme, and what is its exact current status for this phase?

• What is the NOC number, and may I have the full NOC and approved layout plan?

• Where is this plot on the approved layout plan?

• Is possession physical or on paper, and are possession letters being issued in this block?

• What development is complete here — road, water, sewerage, electricity?

• Is the plot level with the road, and if not, how much filling is required?

• Are there any dues, development charges or penalties outstanding against this plot?

• When does the non-construction penalty begin, and at what rate?

About the seller

• May I see the original ownership document and your CNIC together?

• How and when did you acquire this property?

• Is the property held in one name or several?

• Was it inherited? If so, who are the other heirs and where are they?

• If an attorney is acting: may I see the registered power of attorney, and may I speak to the principal?

• Is any transfer already pending on this plot?

• Is the property mortgaged, pledged or subject to any agreement to sell?

• Is there any litigation, notice or dispute concerning it?

About the money

• What is the total price, and what is included in it?

• What are the transfer fee, stamp duty, CVT and withholding tax, and who pays each?

• What is the token amount, and is it adjustable against the price?

• Under what circumstances is the token refunded, and in what time?

• What is the deadline for the balance, and what happens if it is missed?

• To whose account is payment to be made, and is that account in the recorded owner's name?

• What is the dealer's commission, who pays it, and at what stage?

About the process

• Where and when will the transfer take place?

• Who must be physically present, and can it be done through an attorney?

• How long does the society or sub-registry take to record the transfer?

• What will I receive on completion, and when?

• Will you provide a fresh society statement showing the plot in my name?

PUT THE TOKEN IN WRITING

A token receipt should name the property, the total agreed price, the token amount, the date by which the balance is due, and the circumstances in which the token is returned.

A token paid without a written receipt naming those four things is a gift.

Three answers that should end the conversation

• "The NOC is under process, it will come soon."
• "Pay today or the plot goes to someone else."
• "Transfer the money to my account, the owner is abroad."

These guides cover verification and payment. Ownership after purchase, power of attorney, disputes, inheritance and tax are dealt with in the other sections.

General information only, last verified August 2026. Not legal advice, and no professional relationship is created. Portal addresses, fees and society rules change — verify against the official source before acting. For a specific transaction or dispute, consult a lawyer qualified in Pakistan.

Dr. Syed Tahir Hijazi is a development economist and a former member of Pakistan's Planning Commission.