What is an allotment letter?
An allotment letter is the builder’s letter confirming that a specific flat or plot has been allotted to a buyer, with its price and the booking amount received. It comes before the agreement for sale.
Also called letter of allotment.
The allotment letter reserves a named unit for a named buyer. The agreement for sale that follows sets out the full terms and is registered.
What the RERA Act says.
- Section 4(2)(g): when applying for RERA registration, the promoter files the proforma of the allotment letter, the agreement for sale and the conveyance deed it proposes to sign with buyers.
- Section 11(3): at the time of booking and issue of the allotment letter, the promoter must make available the sanctioned plans, layout plans and specifications, and the stage-wise schedule for completing the project, including water, sanitation and electricity.
- Section 13(1): the promoter cannot accept more than 10% of the cost of the unit as an advance or application fee without first entering into a written agreement for sale and registering it.
Example: Maharashtra. MahaRERA’s model form of allotment letter must be used whenever up to 10% of the cost is collected as a deposit or advance (MahaRERA issued a new proforma with Order 60/2024 on 4 September 2024). It states the unit and its RERA carpet area, the MahaRERA registration number, the price excluding GST, stamp duty and registration charges, the parking, the amount received and the RERA collection bank account it was paid into, encumbrances, the possession date, and interest on late payment at SBI’s highest marginal cost of lending rate plus 2%. The buyer is to sign and register the agreement for sale within two months of the letter, unless extended by mutual understanding.
If the buyer cancels, the model letter caps the deduction by when the cancellation letter arrives, counted from the date of the allotment letter, and the rest is refunded without interest within 45 days:
| Cancellation received | Maximum deduction |
|---|---|
| Within 15 days | Nil |
| 16 to 30 days | 1% of the cost |
| 31 to 60 days | 1.5% of the cost |
| After 61 days | 2% of the cost |
Sample: on a ₹1 crore flat with a ₹10 lakh booking, a buyer who cancels on day 40 loses at most ₹1.5 lakh and gets ₹8.5 lakh back within 45 days. A late refund carries interest at the same SBI rate plus 2%.
LoftRay’s sales and CRM module makes allotment-letter PDFs.
Sources, read on 9 Nov 2026: the RERA Act (Gazette copy hosted by MahaRERA), MahaRERA model form of allotment letter and MahaRERA orders and circulars.