Also called: Booking letter, Provisional allotment letter
The letter a builder or development authority issues after you book a unit, naming the unit, its price and the payment plan. It is a record of booking, not ownership.
How it works and what to check
The allotment letter comes before the agreement for sale. Under RERA, a builder cannot take more than 10% of the cost before the agreement for sale is signed and registered, so check how much you are asked to pay at allotment.
Check that the unit number, carpet area, price, parking and the charges listed match what you were offered, and keep it safe; banks ask for it for a loan.
Common questions
Does an allotment letter give ownership?
No. Ownership passes by a registered sale or conveyance deed.
Can an allotment be cancelled?
Yes, under the terms in the letter and agreement. RERA rules and state model agreements limit how much can be forfeited.