Are you planning to book an under-construction property? If yes, then do you know about allotment letter? No! All right, first know what is an allotment letter and its significance and then go with your plan.Allotment letter:While booking an under-construction property, it very essential that you receive an allotment letter from the real estate developer as it will comprise of all property related details, the payment procedure and additional charges for maintenance or amenities, if applicable. When do you make the first payment to your builder? It is while booking the flat, as advance amount. The builder usually returns a receipt, stating the payment has been made along with an allotment letter. Generally, the buyer receives this document after he/she pays around 10 to 15% of the total property cost to the builder as advance booking rate. It is legally the first agreement which the buyer signs with the developer while booking the property. It is also a crucial document which plays an important role during the property buying process. Evidently it serves as a proof of the property deal taken place between the particular buyer and seller. Since it includes almost all property related information, it can also serve as strong legal evidence, in case of any issues with the builder. Before you receive the allotment letter, you can discuss about your preferences with the builders that you get availed by the options.What does an allotment letter commonly consist of?
- Amount to be paid as advance booking
- Construction terms
- Specifications like carpet area, built-up area, super built-up area of the property
- Car parking cost, if applicable or additional charges for amenities like swimming pool, clubhouse, gym, party hall etc.
- Final cost balance from you that includes charges like VAT, amenities and car parking cost, service tax. The allotment letter would not include the charges incurred during the registration.
Significance of allotment letter:Allotment letter holds a lot of significance during the property buying process as this is sole document that signifies the transaction has taken place between the buyer and seller.Let see why this document is so important:
- If you are buying a home, mostly you will require home loan, so how will you prove the bank that you sincerely need loan for home? Allotment letter is what you need to hand over to bank as a proof. The document includes amount paid and balance to be paid hence the bank estimates the balance and provides finance. The bank, usually on the basis of the letter provides finance to the buyer.
- Allotment letter can be bought forward at the time when builder denies giving what he had promised off. There are some fraudulent builders who promise to avail you with some benefits but at the time of completion, denies of the offer hence in such situation, allotment letter can be used as a legal proof. The letter contains all project related information hence if the builder does not avail with the features or specifications mention, the buyer can take legal action against him.
- You can also refuse to make the payment for the specification hasn’t provided till the dispute gets sorted. In fact the builder may have to refund the amount paid, if the service is not provided.
Property buying is a huge investment; hence ensure that you are aware of all imperative documents related to this transaction, to avoid further major risks.займ на карту без отказов круглосуточновзять кредит онлайн