What is an allotment letter, what are its types, and format?

There is too much paperwork involved in buying properties. However, as the possession of documents is the single-biggest determiner of property ownership, it is extremely important that every single page of the documentation is preserved diligently by the homebuyer. It is in this context that we would discuss the importance of allotment letters in the real estate business.

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What is an allotment letter in home purchase?

An allotment letter is a document issued by a developer to property buyers once an arrangement has been reached between the two parties to work towards a binding contract.

For instance, when homebuyers apply for a unit in government projects, and they are selected based on the eligibility criterion of the concerned authority, it issues them an allotment letter, sharing the information related to the buyer and the property. This is true of housing schemes launched by development authorities, such as the Delhi Development Authority, the Maharashtra Housing and Area Development Authority, Bangalore Development Authority, Lucknow Development Authority, etc.

Similarly, when a buyer invests in housing projects of private developers, an allotment letter is issued to the purchaser, providing all details of the deal.

Draft of allotment letter issued by development authorities

(Draft of Allotment Letter)

Ref. No………………. Date: ____________

To,

MR/MS/MRS.___________

R/O___________________

Contact No.: __________

Dear Sir/Madam,

This has reference to your Application/ Expression of Interest dated <Date of Booing> for allotment of Residential Plot in our Residential Township Project “AEROCITY”, situated at Village Heir, Meerakot Kalan and Bal on Ajnala Road, Amritsar, Punjab.

In response to the above, we are pleased to allot you <Type of Property> as per the details given below:

Name of the Allottee (s) & Address	MR/MS/MRS.___________ R/O___________________
Status of Applicant(s)	<Individual/Company>
PAN/AADHAR Number	<All Applicants>
Name of Project and Phase	_______________
Location of the Project
Type of Unit (Residential/Commercial)	<Residential/Commercial>
Description of Unit (Plot/Independent Floor/Residential Apartment/Studio Apartment/Office Space/Retail Shop/ Any other	Residential Bearing No. <Unit NO.>
Plot Area/Carpet Area of the Unit	Area of Unit in Sq. Yards & Sq. Mt

Upon the above allotment, you are required to execute an Agreement to Sale as prescribed under Section 13 of the Real Estate (Regulation & Development) Act, 2016 and rules made there under as amended.

This Letter of Allotment is subject to the terms and conditions set out in the Annexure forming part hereof, as well as those contained in the Agreement to Sale to be executed.

Please note that the allotment shall become final and binding upon the Company only after you sign and execute the aforesaid Agreement to Sale in respect of the above said Plot.

You are required return to the company the Duplicate copy of this Letter of Allotment and Annexures duly signed by all the Allottee(s).

We will be pleased to assist you on any matter relating to this communication.

Thanking you and always assuring you of the best of our services.

For DSK Realtors Pvt. Ltd.

Authorized Signatory

_______________ Signature of Intending Allottee(s)

in confirmation and acceptance

Enclosures: Annexure I (Payment Plan & Price List)

Annexure II (Terms & Conditions of Allotment)

ANNEXURE – II

Terms & Conditions of the allotment

The Applicant (“Allottee”) has applied for allotment/purchase of a Plot in the above-mentioned project with full knowledge about the project and subject to all the laws, rules, regulations, notifications, and Government policies as applicable to the said project in particular and in the area in general, which have been explained by the Company and understood by him.
The Allottee has fully satisfied himself about the title, interest, and rights of the Company in the project-land and all other requisite approvals, sanctions, and permissions in respect of the Project, the descriptions, and specifications of the project and has understood all the limitations and obligations in respect thereof and there will be no more investigation or objection by the Applicant in this respect and the authority of the Company to allot or transfer the ownership rights in the Plot(s) in the said Project, in full or in parts, on such terms as the company deem fit and receive the advances, consideration for such allotment/sale/ or transfer and has understood all limitations and obligations in respect thereof.
The Allottee agrees to execute the Agreement to Sale as prescribed under Section 13 of the Real Estate (Regulation & Development) Act, 2016 (“Act”) immediately after the receipt of this Letter of Allotment and make payment of the Total Sale Consideration in terms of the payment plan attached to the Agreement to Sale, failing which this Letter of Allotment shall stand automatically cancelled without any prior notice/letter in writing to the Allottee and the amount paid by the Applicant shall be forfeited as per the provisions of the Act or rules and regulations made thereunder.
All payments towards the price of the said Plot will be made through the Bank Account of Applicant only and if the payment is made otherwise, the same shall be at the risks and consequences of the Applicant.
The Allottee agrees that the Company shall have absolute and unfettered right to change the Unit/Plot Number/Phase/Category before the execution of the Agreement to Sale. The Company, in its sole discretion, may also entertain the request of the Allottee for the change, subject to the availability of the Plot/Unit in the desired category.
The Allottee, who is Non-Resident Indian/Person of Indian origin resident outside India/Foreign National/Foreign Company, agrees that all remittances, for the acquisition/transfer of the said Flat/Apartment/Unit/Plot shall be sole responsibility of such Allottee and he shall comply with all the provisions of Foreign Exchange Management Act, 1999 or statutory enactment or amendment thereof and the rules and regulations of the Reserve Bank of India or any other applicable laws and provide the Company with such permission, approvals, which would enable the Company to fulfill its obligations under the said Allotment. The Allottee shall keep the Company full indemnified and harmless in this regard. The company accepts no responsibility on account of any default/violation/failure on the part of the Allottee.
The allottee shall get his complete address registered with the Company and submit necessary ID/Address proof and it shall be Allottee’s sole responsibility to inform the Company in writing by Registered/Speed Post A.D. about all or any subsequent changes, if any, failing which all communications/notices etc., sent by the Company at the first address as mentioned by the Applicant in his Application Form or at the last known address as informed by the Applicant, as the case may be, shall be deemed to have been received by the Applicant.
In case of joint Applicants, all communications/notices shall be sent by the Company to the Applicant whose name appears first at the address given by him and this shall for all purposes be considered/deemed to have been received by all the Allottees and no separate communication shall be necessary to the other joint-Allottee(s).
The Allottee shall have to strictly comply with the schedule of payment opted by him and he shall be fully and solely responsible for any default in payment and the consequences that might arise there from. The Applicant undertakes to abide by all the laws, rules and regulations relating to the said Flat/Apartment/Unit/Plot.
The Allottee agrees and acknowledges that making timely payment of total sale consideration of the Plot applied for by him and allotted herein as per the payment plan attached thereto with Agreement to Sale. The Allottee further agrees and acknowledges that a similar Plot may be/have been sold/allotted by the Company at a different price/consideration and the Allottee shall not raise any objection or claim in this regard.
The Allottee has seen and accepted the layout plans of the said Project, which are kept at the Company’s office and agrees that the Company may effect such variations, additions, alterations, deletions and modifications therein as it may be done/directed by any Competent Authority in the interest of the project and the Allottee hereby gives his consent to such variation/addition/deletion/alteration and modification.
The Allottee declares that all payments will be made from his own bank account and from his known source of income/Home Loan.

DECLARATION

I/We have fully read and understood the above-mentioned terms and conditions and agree to abide by the same.

I/We do hereby agree to sign and execute the Agreement to sale immediately, failing which this Letter of allotment shall stand automatically cancelled without any prior notice/letter in writing and the amount paid by me/us may be forfeited/refunded by the Company and I/We shall have no claim whatsoever against the Company.

I/We, the undersigned Applicant(s), do hereby affirm and declare that the above-mentioned particulars/information given by me/us are true and correct to the best of my/our Knowledge, nothing stated therein is untrue and nothing material has been concealed there from.

Yours Faithfully Date: …………………………

Signature and Name(s) of the Allottee(s) Place:

…………………………

Click here to download in word format.

Draft of allotment letter issued by builders

ALLOTMENT LETTER FOR FLAT/ UNIT/ APARTMENT:

Promoter Name & Address: …………………………………………………………………..

Allottee Name & Address: Mr./Ms. ……………………………………………………….

…………………………………………………………………..

Allottee Mobile number & mail id: ……………………………………………………………..

Dear Sir/Madam

I / We (……………………………………………) are pleased to allot you the Flat/Unit/Apartment No:……………… of Block No: …………………… of ………………………………project located at…………………………………………Village / City, …………………………………………District, Pin code…………………….……………………

Nature of Document:

Whereas the Promoter has developed the site which has the legal right through development agreement/ Registered ownership document Doc. No: the project named as “……………………………………………………………………………” which has the valid permission from the ………………………………………………… which is the competent Authority for approval of Plans vide B.P. no: ……………………………………………….. in Survey. Nos: …………………………………….. of …………………………………. village / City to an extent of ……………….. square metre of site area, herein after referred to as the “Project” which was registered with AP Real Estate Regulatory Authority vide registered Number……………………………………………………….. date: …………….
Whereas the Allottee has approached the Promoter to allot………… Flat/Unit/Apartment in the project after having examined the title and required sanctions/permissions approvals and having satisfied with the right/title/authority of the promoter to convey the Flat/Unit/Apartment in the Project.
The promoter and Allottee have come to a conclusion about the sale price and promoter agreed to allot the Flat/Unit/Apartment. Thereof this Letter of Allotment is issued by the Promoter to Allottee, with the following terms and conditions.
The Allottee has paid the Booking amount of Rs………………………. to the Promoter vide Cheque / DD / transaction id: …………………………………………………………………………..
The Allottee shall enter in to Registered Agreement for sale before paying the 10% of total cost (Including the Booking Amount) of unit/ Flat/ Apartment.
The Allottee is bound by all terms and conditions of the Registered Sale Agreement, which will be executed by the promoter on fulfilment of the conditions of this Allotment Letter in due course of time.
__% on completion of ……………………..
__% on completion of ……………………..
__% on completion of ……………………..
__% on completion of ……………………..of the Flat/Unit/ Apartment.
__% at the time of Handover of the Flat/ Unit/ Apartment.
In Addition to the sale consideration, as mentioned above, the Allottee shall bear the Stamp Duty and Registration charges of the Sale Agreement and also Conveyance/Sale Deed to be executed by the promoter in respect of the Schedule Flat/ /Unit/Apartment. Further, the Allottee shall bear taxes payable to State and Central Government, if any.
All payments to be made in favour of M/s.____________________, payable at ………………………………………. City / District.

Bank Name (separate RERA A/c):

A/c No:

Branch Name:

IFSC Code:

Declaration by Allottee:

I/we have read and understood the Agreement of sale prepared by the Promoter as per the standard format specified in Andhra Pradesh Real Estate (Regulation and Development) Rules-2017 and hereby give my consent to abide and be bound by all the terms and conditions. I / we shall be entitled to an agreement of sale from the Promoter on payment of the Amounts / instalments payable as per agreed terms.

Signature of Allottee Promoter / Authorized Signatory

Date: Date:

ALLOTMENT LETTER FOR PLOT:

Promoter Name & Address: …………………………………………………………………..

Allottee Name & Address: Mr./Ms. ……………………………………………………….

…………………………………………………………………..

Allottee Mobile number & mail id: ……………………………………………………………..

Dear Sir/Madam

I / We (……………………………………………) are pleased to allot you the Plot No: ……………… of Block No: …………………… of ……………………………………..project

LP No: ……………………………………..located at…………………………………………Village / City, …………………………………………District, Pin code…………………….……………………

Nature of Document:

Whereas the Promoter has developed the Layout which has the legal right through development agreement/ Registered ownership document Doc. No: the project named as “……………………………………………………………………………” which has the valid permission from the ………………………………………………… which is the competent Authority for approval of Plans vide L.P no: ……………………………………………….. in Survey. Nos: …………………………………….. of …………………………………. village / City to an extent of ……………….. Acres of site area, herein after referred to as the “Project” which was registered with AP Real Estate Regulatory Authority vide registered Number……………………………………………………….. date: …………….
Whereas the Allottee has approached the Promoter to allot………… Plot in the project after having examined the title and required sanctions/permissions approvals and also having satisfied with the right/title/authority of the promoter to convey the Plot in the Layout Project.
The promoter and Allottee have come to a conclusion about the sale price and promoter agreed to allot the Plot. Thereof this Letter of Allotment is issued by the Promoter to Allottee, with the following terms and conditions.
The Allottee has paid the Booking amount of Rs………………………. to the Promoter vide Cheque / DD / transaction id: …………………………………………………………………………..
The Allottee shall enter in to Registered Agreement for sale before paying the 10% of total cost (Including the Booking Amount) of Plot.
The Allottee is bound by all terms and conditions of the Registered Sale Agreement, which will be executed by the promoter on fulfilment of the conditions of this Allotment Letter in due course of time.
…. % on ……………………….
……% on ……………………..

c ……% on ……………………..

……% on……………………..
……% at the time of Handover of the Plott
In Addition to the sale consideration, as mentioned above, the Allottee shall bear the Stamp Duty and Registration charges of the Sale Agreement and also Conveyance/Sale Deed to be executed by the promoter in respect of the Plot. Further, the Allottee shall bear taxes payable to State and Central Government, if any.
All payments to be made in favour of M/s………………………………………………………….., payable at ………………………………………. City / District.

Bank Name (separate Account for RERA):

A/c No:

Branch Name:

IFSC Code:

Declaration by Allottee:

I/we have read and understood the Agreement of sale prepared by the Promoter as per the standard format specified in Andhra Pradesh Real Estate (Regulation and Development) Rules-2017 and hereby give my consent to abide and be bound by all the terms and conditions. I/we shall be entitled to an agreement of sale from the Promoter on payment of the Amounts/instalments payable as per agreed terms.

Signature of Allottee Promoter / Authorized Signatory

Date: Date:

Click here to download in word format.

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