After a buyer pays the booking amount, the developer allots a specific unit and issues the allotment letter. It records the unit details, the payment plan, the amount received and the timeline for signing the agreement. Development authorities such as the Delhi Development Authority and state housing boards issue allotment letters too, for their own schemes.
The RERA Act defines allotment and limits the advance a promoter can take before a registered agreement, so the allotment letter is followed quickly by the agreement for sale. Banks often ask for it with the cost sheet when processing a loan sanction.
Check that the carpet area and unit number on the allotment letter match the RERA-registered plan and the cost sheet.
Example
A buyer books a 2 BHK in a Noida project during a launch, paying ₹5 lakh. Within a week she receives an allotment letter for Tower C, 14th floor, unit 1403, carpet area 780 sq ft, total price ₹82 lakh with a construction-linked plan. Her bank uses it with the cost sheet to begin the loan sanction.
Figures are illustrative, not market rates.
Questions about Allotment letter
Is an allotment letter proof of ownership?
No. It confirms that a unit has been allotted to you. Your rights are created by the registered agreement for sale, and ownership passes on the conveyance or sale deed.
What happens if I cancel after the allotment letter?
The cancellation terms in the allotment letter and the agreement apply. Under RERA model agreements, deductions on cancellation are limited; read the clause before paying the booking amount.
Sources
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