In a circular released by MahaRERA, a standardized format for allotment letters will now be followed by promoters (or builders) for their projects.
An allotment letter is a document issued by the builder of an under-construction project to the buyer of a unit (or units) of that project, when the booking amount has been paid. This document contains information about the project and the unit in question.
Previously, there was no uniform format being followed for allotment letters, which meant inconsistencies in the information contained in them. For instance, a builder could choose to not include information such as the value of the booked apartment in the allotment letter, and the date of possession.
Should a buyer decide to cancel the purchase of the unit in question, this information proves critical, as cancellation charges usually depend on the value of the flat.
Following this update, information such as the date of possession, value of the booked apartment, and its carpet area (among other metrics) shall be made mandatory. Information not present in the model letter can also be optionally added by respective builders.
A sample view of the prescribed allotment letter is found below.
In addition to the aforementioned changes pertaining to the presence of information, the circular also stipulates an upper limit of 2% of the value of the unit as cancellation fees, varying by the time period in which the cancellation is made. A detailed breakdown can be found below:
Per the circular, a model of the allotment letter would also have to be submitted by the builder at the time of application for registration of the project with MahaRERA, in addition to other documents.
The full model allotment letter can be viewed at this link.
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