Allotment Letter Vs Agreement

The execution of a registered sales agreement is a mandatory requirement, in accordance with section 13 of the Real Estate Regulation Act 2016 (also known as the RERA Act, 2016). If the contracting authority does not execute the registered sales contract with the buyer of the dwelling, it is liable to fines of up to 5% of the costs of the project, in accordance with section 61 of the RERA Act. The importance of a letter of allowance when buying real estate The first step that a person undertakes when booking a dwelling is the issuance of a letter of allocation by the contracting authority. The award notice is usually issued by the developer after acceptance of the amount of the reservation for the accommodation by the client. These booking amounts usually vary from one Lakh to 5 Lakh. It may be higher if more expensive luxury accommodations are involved.