Do you consider looking for a suitable property the most challenging task? Undoubtedly it is a crucial step, but there’s more. Yes, we are talking about documentation. You must have all the property documents in place. Besides the title deed, sale agreement, commencement certificate, and other things, there is yet another essential document which is known as the allotment letter.
It is a crucial document concerning property purchases in India.
When the builder receives the booking amount from the buyer, they issue this document to the first owner. Only the first owner possesses the right to the allotment letter, and other owners can seek copies of the original document from the seller.
This letter comes in handy if a buyer wishes to apply for a home loan. The reason is that the amount the buyer has to pay to the builder is mentioned in the letter. It also provides evidence when the builder fails to grant the promised facilities to the buyer.
The Indian Contract Act mentions that a document is legally binding if it is enforceable under Section 10 and made by competent parties. Therefore, since the allotment letter contains all the essential contract features, it is legally binding.
A builder cannot cancel a property booking unilaterally after issuing the allotment letter. However, they can send a notice to the buyer with the details of the refund of the booking amount.
According to a new order of the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), an allotment letter from the builder is enough to act as proof of investment for availing of LTCG tax deductions after the sale of a property. This recent order benefits millions of taxpayers because they will no longer need to wait for the ‘Agreement to Sell’ document from the builder.
Here is the information that a letter contains:
Different kinds of allotment letters depend on their origin, format, and style. They are listed as follows:
An allotment letter is mandatory, but several individuals do not know the specific format. Are you also unaware of how to write a strong letter of allotment? Do not worry! You can now get your hands on allotment letters with a quick select and fill format on the Internet. So, resort to pre-written allotment letters to produce an enticing document.
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