Glossary

Allotment Letter

An allotment letter is a formal document issued by a developer to a property buyer confirming the allocation of a specific unit within a project. It serves as a preliminary agreement detailing the unit specifications, payment schedule, and terms of sale before the execution of a formal, registered sale deed.

In the Indian real estate market, the allotment letter acts as the primary evidence of a buyer's interest and commitment to a property before the formal conveyance process. It is critical for securing home loans, as financial institutions require this document to verify the unit details and the developer's commitment to the buyer. Because it precedes the registered sale agreement, it establishes the initial legal link between the developer and the purchaser, outlining the agreed-upon price, floor plan, and expected delivery timelines.

When receiving an allotment letter, buyers must verify that all unit details—such as the apartment number, floor, carpet area, and parking allocation—match the original booking application. It is essential to ensure the document clearly states the payment milestones and any applicable taxes or maintenance charges. While this letter confirms the booking, it does not transfer legal title to the property. Buyers should treat it as a foundational document that must be preserved until the final sale deed is registered.

Last updated: 2026-09-17