What Should a Bayana Agreement Include Before I Sign?
A bayana agreement is the written promise behind a property deal in Pakistan. It records that the buyer will buy and the seller will sell, on agreed terms, by an agreed date. It is also called an agreement to sell, or iqrar nama, and it is usually prepared on stamp paper and signed by both parties with witnesses.
One point buyers often get wrong: signing a bayana agreement does not by itself make you the owner. Ownership passes when the sale deed is executed and registered, and the land record is updated. The bayana agreement matters because it locks in the terms and gives both sides something to rely on if the deal is disputed. A vague agreement is almost as risky as no agreement at all.
1. The parties, identified in full
The agreement must name the buyer and the seller in full, exactly as on their national identity cards, with CNIC numbers and current addresses. If someone is signing on another person’s behalf, the agreement should say so and record the authority they are signing under — a power of attorney is not something to take on trust. Check the names against the identity cards in front of you, not from memory, and make sure the seller named in the agreement is the same person named in the property record.
2. The property, described so it cannot be confused with another
A property description that just says “a house” or “a plot” is not enough. The agreement should record the complete address, the plot or house number, the area and measurements, the boundaries, and the identifying record details — such as the fard or registry reference where available. If the property is a share of a larger property, or if there are co-owners, the agreement must say exactly which share is being sold and whether the other owners are involved. This is also where earlier confusion about documents causes trouble: if you are unsure how the Fard, Registry, and Intiqal fit together, settle that before signing, not after.
3. The price, the bayana paid, and the balance
Three money figures must appear, each written in both figures and words: the total agreed price, the bayana amount already paid, and the balance still to be paid. The agreement should also record how the bayana was paid — cash, pay order, or bank transfer — and confirm that the seller has received it. State clearly that the bayana will be adjusted against the total price at registry, so there is no later argument about whether it was a separate payment. Never sign an agreement that leaves the price blank, or that records a different price from the one actually agreed.
4. A payment schedule with a real deadline
The agreement must give a final date by which the balance is to be paid and the registry completed. If the balance is to be paid in instalments, each instalment amount and its due date should be listed separately. A deadline written as “soon” or “when convenient” is not a deadline at all.
5. The seller’s declarations about title and dues
The seller should state in the agreement that they own the property, that it is free from mortgage, loan, court case, stay order, attachment, and dispute, and that no one else has a claim on it. The agreement should also deal with outstanding dues: utility bills, society charges, and any other liabilities up to the date of the agreement should be the seller’s responsibility, with a clear cut-off point. Before signing, verify the seller’s record yourself through PLRA’s online land record portal and the relevant office — a declaration in the agreement is a protection, not a substitute for checking.
6. What happens if either side backs out
This is the clause most often left vague, and the one most often fought over. The agreement must state, for each side separately, what happens on default. If the buyer fails to pay by the deadline, does the bayana stand forfeited? If the seller refuses to complete the sale, must the bayana be returned, and is any additional amount payable? Whatever the parties agree, it must be written down in plain words. Do not rely on a verbal assurance that “we will settle it” — if it is not in the agreement, it is very hard to enforce. Understanding this clause is also why it helps to know how token money and bayana differ: a small holding amount and a formal bayana carry very different consequences when a deal falls through.
7. Possession and the steps to registry
The agreement should say when possession will be handed over — at registry, at full payment, or on another stated date — and in what condition. It should also list what the seller will provide for the registry: the original title documents, identity documents, and any no-objection or clearance the transaction requires. If any document is currently missing, the agreement should name it and give a date by which the seller will produce it, rather than leaving it to a verbal promise.
8. Who pays the transaction costs
Transfer costs, stamp duty, registration charges, and any agent’s commission should be allocated in the agreement: who pays what, and when. This avoids the common end-of-deal argument where each side assumed the other would pay. The agreement does not need to quote rates — those change — but it must assign responsibility for each cost.
9. Extensions and changes only in writing
Deadlines slip. The agreement should say how an extension works: it must be agreed in writing, signed by both parties, and attached to the original agreement. A verbal extension, a phone message, or a note from one side alone should not change the deal. The same rule applies to any change in price, payment schedule, or possession date — if it is not written and signed, it did not happen.
10. Nominee and transfer wording — only if it is agreed
Sometimes a buyer wants the right to complete the purchase in another person’s name. That right exists only if the agreement says so. If the agreement is silent, do not assume you can nominate someone else later, and do not assume the seller will accept it. If nomination is part of the deal, write it in plainly, including whether the seller’s consent is needed.
11. Signatures, witnesses, and copies
Both parties should sign every page, not just the last one, and two witnesses should sign with their full names and CNIC numbers. Each party should leave with a signed copy of the complete agreement — not a photocopy of an unsigned draft, and not a promise that a copy will follow. Check before you leave the table that no page is missing and no space has been left blank for someone to fill in later.
Signing-day checklist
Run through these five checks before you pick up the pen. First, read the whole agreement yourself — do not sign a document someone else has only summarised for you. Second, match every name, CNIC number, and property detail against the original documents. Third, confirm the seller’s record has been verified, not just described. Fourth, check that no blank spaces remain anywhere in the document. Fifth, confirm you will leave with a signed copy the same day. If any check fails, pause the signing until it is fixed; a day’s delay costs far less than a disputed agreement. For the same reason, read up on whether token money is refundable before you pay anything — the refund question is answered by what is written, not by what was said.
Three red flags that should stop a signing
Stop if the agreement has blank spaces, especially around price, dates, or the property description. Stop if the seller asks you to rely on verbal promises that are not written into the agreement — whatever is promised verbally should be added to the document before signing. And stop if the seller cannot produce the title documents the agreement refers to; a signature cannot fix a missing title.
Bottom line
A good bayana agreement is not long for the sake of being long. It is complete: the right people, the right property, the right money, a real deadline, honest declarations, clear consequences for default, and a written-only rule for changes. If your agreement covers all eleven points above, you are signing a deal you can actually rely on. If it does not, the missing clause is the first thing to fix — before you sign, not after.
Disclaimer: This article is general information about property transactions in Pakistan, not legal or tax advice. Agreement formats and requirements can vary by province, property type, and authority. Consult a qualified lawyer before signing any property agreement.