An allocation letter is an important document in the real estate sector when buying real estate in India. When a person buys a property under construction, a letter of allocation is sent to the potential buyer by the client. It is issued as soon as the buyer pays 15% of the value of the property to the developer. Importance of the letter of assist 1. This letter contains the figures and facts about the property and its various details. 2. This letter shall essentially explain the details and plans of construction, architectural details, etc., and the amount of money to be paid to the contracting authority. 3.C is the only document for an unfinished property that serves as proof of real estate negotiation. 4. It is important to use a loan from the bank, as the letter mentions the amount of money that must be paid to the contracting authority in order for the remaining amount to be financed by the bank. On the basis of this letter, the Bank finances the balance. 5.
Although the contract of sale is the main sales document, a letter of award may be useful as evidence if the promised amenities have not been provided as indicated by the contracting authority. Note: The MAHARERA court recently issued an important judgment in which the Allottees had purchased an apartment in Winter Green of Rivali Park, Borivali East, for Rs 184.108.40.2062 and issued a letter of award for the aforementioned award engines in November 2012. The organizer agreed to transfer the property in February 2016. But the developer was unable to provide ownership of the apartment in question and the project was delayed by almost four years. Subsequently, the Allottes joined MAHARERA to withdraw from the project and ask for an 18% interest refund. In this case, the MAHARERA court concluded that the letter of allocation also allows the buyers of the house to apply to the owner for a refund of the apartment booked with interest, in accordance with section 18 of the RERA Act, 2016. Read also: Change rules MAHARERA, 2019 Content of the cover letter: It contains the following information: 1. Payment possibilities 2. Details of apartment 3. Construction conditions, construction schedule. 4.
Amenities promised by the developer, such as clubhouse, parks, gyms, etc. 5. The final amount due to the buyer, including taxes. 5. The date of delivery and the liability of the contracting authority in the event of late completion. Sales Agreement In accordance with section 2(c) of the RERA Act, 2016, “sales contract” means a contract entered into between the organiser and the Allottee. A contract of sale is a contract for the sale of real estate in the future. It contains the terms of a potential sales contract. Any breach of the terms of a sales agreement can only lead to an action for damages. Some of the main clauses of the sales agreement, defined below: 1. name of the parties with their respective age and address of residence. 2.
Date and place of performance of the contract. 3. The amount of the consideration, the nature and date of payment. 4. Penalty and expiry clauses in case of delay (variable depending on the case) 5. The conditions under which the property is delivered. 6. The rights, obligations and commitments of each Party. 7.
The share of the costs to be borne by each party. The execution of a sales contract must be followed by two persons able to conclude a contract. Witnesses can be from both parties – one on the buyer`s side and the other on the seller`s side. Instrument of transmission An act of transmission is such a document that is necessary when ownership of a property is transferred from one person to another. The concept of act refers to a contract of written law that binds the parties to its conditions and that can be proved as evidence in court. . . .