Besides being an extremely important document, which is absolutely essential while applying for a home loan, an allotment letter is a snapshot of the property details by the builder. It gives a buyer clarity about what can be expected from the builder. As a buyer, the allotment letter gives you a basic perspective about the property you're buying. In layman's language, this document is a record of all the promises and commitments the builder makes at the time of purchase. The allotment letter gives the buyer an assurance that legal aid can be sought in case the builder fails to adhere to agreed terms. This article further enunciates the purpose and importance of an allotment letter. Why do you need an Allotment letter from the builder? Attainment of an allotment letter is mandatory while opting for an under-construction property. Even while taking a bank loan in terms of buying a property, it plays a very crucial role for the buyer. The buyer has to obtain this document from the builder. This document states the particulars of the land or property which is being bought or sold by the buyer or the seller. Features of allotment letter The document comprises of the following specifications-

• Facts related to the property or apartment
• Construction agenda
• Maintenance Charges
• Preferences regarding payment
• Time of the delivery
• Details of the Legal liabilities infused if the project gets delayed

How can this document be obtained? An allotment letter is usually attained from the builder. A buyer can acquire this certificate from the builder after he/she pays 15 percent of the cost of the property. Significance of Allotment Letter

• It enables the buyer to acquire home loan from the bank
• Even under situations, when any of the important facets declared in the allotment letter is not provided to the buyer, the builder or the developer can be legally enforced to reimburse the amount paid by the consumer
• Desired features mentioned in the document, can avoid future dispute between the builder and the buyer
• All the property related details are mentioned in this document
• Besides the delivery date, payment specifications are also articulated in this document

In case of Absence of Allotment letter

• Restricts from taking loan from bank
• Buyer can't take any action against the builder if any of the aspects promised by them is missing.