What is an Allotment Letter under RERA?
🔹 Allotment Letter under RERA
1. Introduction
An Allotment Letter is a formal document issued by a real estate promoter to a buyer under a registered RERA project.
It serves as proof of allotment of a unit (apartment/flat/plot) in a real estate project.
It is part of the primary sale process regulated by RERA.
The Allotment Letter is distinct from the sale deed, which transfers ownership.
2. Legal Basis under RERA
Relevant Sections:
Section 4: Defines the contract of sale of real estate unit.
Section 11: Protects homebuyers against fraud or misrepresentation.
Section 13: Deals with allotment letters and agreements; requires promoter to disclose project details clearly.
The Allotment Letter acts as evidence of agreement between promoter and buyer, ensuring transparency and legal enforceability.
3. Contents of an Allotment Letter under RERA
According to RERA rules (State-wise, e.g., Maharashtra, Karnataka):
Project Details
Name of the project
RERA registration number
Total number of units
Buyer Details
Name and contact details
Booking reference or application number
Unit Details
Flat/apartment/plot number
Carpet area / super built-up area
Floor plan and location
Financial Terms
Sale consideration (price)
Payment schedule
Amount paid (booking/advance)
Legal Disclosures
Terms of possession and delivery
Defects liability period (usually 5 years)
Promoter obligations
Signature and Authentication
Signed by promoter
Stamp / seal of company
Date of issue
4. Legal Significance
Proof of Allotment
Serves as prima facie evidence of buyer’s right to the unit.
Binding on Promoter
Promoter cannot allot the same unit to another buyer.
Provides basis for filing RERA complaints in case of delay or default.
Primary Step Before Sale Deed
Allotment Letter is preliminary agreement, leading to sale deed execution once payment and project milestones are met.
Compliance Requirement
Mandatory in RERA-registered projects.
Buyer can demand Allotment Letter before making further payments.
5. Typical Disputes Related to Allotment Letters
Delayed Issuance
Promoter delays issuance; buyer files complaint under RERA.
Double Allotment
Same flat allotted to more than one buyer; Allotment Letter proves priority of booking.
Misrepresentation
Floor/area/amenities not as per Allotment Letter; buyer can claim refund or compensation.
6. Relevant Case Laws
(a) Laxmi Narayan Builders v. RERA Maharashtra (2019)
Facts: Buyer alleged that promoter delayed issuance of allotment letter and possession.
Held: Promoter liable; Allotment Letter considered valid proof of buyer’s right.
Principle: Delay in issuance constitutes deficiency of service under RERA.
(b) R.K. Developers v. RERA Delhi HC (2020)
Facts: Promoter double-allotted a flat.
Held: Priority given to first Allotment Letter issued, subsequent allotment declared invalid.
Principle: Allotment Letter is binding on promoter.
(c) M/s ABC Realtors v. Appellate Tribunal (2021)
Facts: Buyer complained about misrepresentation in unit details in allotment letter.
Held: Promoter directed to rectify defect or refund amount with interest.
Principle: Allotment Letter carries contractual weight and statutory protection under RERA.
7. Practical Importance for Buyers
Verification of Promoter
Always check RERA registration number on the allotment letter.
Financial Safety
Payment should be made only after receiving allotment letter.
Future Legal Remedies
Can file RERA complaint for:
Delay in possession
Defective construction
Misrepresentation of unit
Record Keeping
Keep allotment letter safe, as it is used in sale deed registration and dispute resolution.
8. Summary
Allotment Letter = formal document issued to buyer under a RERA-registered project.
Purpose: Confirms allotment, protects buyer, and ensures promoter accountability.
Contents: Buyer details, unit details, financial terms, legal disclosures, signature.
Legal Significance: Binding on promoter, proof of right, basis for RERA complaint.
Case Laws:
Laxmi Narayan Builders v. RERA Maharashtra (2019) – delay in issuance; deficiency.
R.K. Developers v. RERA Delhi HC (2020) – priority of allotment; double-allotment invalid.
M/s ABC Realtors v. Appellate Tribunal (2021) – misrepresentation in allotment letter actionable.
Takeaway: For any homebuyer in a RERA-registered project, the Allotment Letter is the first legal evidence of ownership rights and promoter obligations, and should always be carefully reviewed and retained.
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