ALLOTMENT LETTER FOR A COMMERCIAL UNIT
__________
__________
Date: __________
Place: __________
To,
__________
__________
Subject: Allotment of __________, __________, __________
Dear Sir/Madam,
1. The parties and the Project
1.1 The Developer
- Name: __________
- Constitution: __________
- Address: __________
Called "the Developer" below.
1.2 The Allottee
- Name: __________
- Address: __________
1.4 The Project
The Project is __________, situated at __________, __________ ("the Project"), a commercial project in which the Developer is the promoter within the meaning of the Real Estate (Regulation and Development) Act, 2016. RERA registration number: __________.
2. The Unit allotted
2.1 The Developer allots to the Allottee, on the terms of this Letter, __________ bearing __________, __________, in the Project ("the Unit").
2.2 Full description of the Unit: __________
2.3 Area of the Unit: __________
2.4 Both the description and the area given above are taken from the sanctioned plan as it stands today and are subject to such variation, within the limits ordinarily permitted, as construction and any RERA-sanctioned revision of the plan may bring — a matter the Agreement for Sale in Clause 6 will state definitively, including how a variation in area changes the Total Consideration.
3. Total consideration, tax and payment plan
3.1 The total consideration for the Unit is __________ ("the Total Consideration"), made up as follows: __________
3.2 Goods and services tax: __________.
3.3 Payment plan: __________.
3.4 Payment schedule for the balance of the Total Consideration, after adjustment of the Booking Amount as Clause 4 states: __________
3.5 Where the Total Consideration or any instalment reaches the threshold at which Section 194-IA of the Income-tax Act, 1961 applies, the Allottee should check whether tax is to be deducted at source from that instalment before it is paid, and should not rely on this Letter to have worked that out.
4. The Booking Amount already received
4.1 The Developer acknowledges having received from the Allottee a sum of __________ ("the Booking Amount"), on __________, by way of Bank transfer (NEFT / RTGS / IMPS / UPI).
4.2 The Booking Amount is __________
5. What this Letter is, and what it is not
5.1 This Letter is a preliminary allotment of the Unit to the Allottee. It records that the Developer has provisionally set the Unit aside for the Allottee, on the terms stated above, pending the Agreement for Sale in Clause 6.
5.2 This Letter does NOT sell the Unit, does NOT convey or agree to convey title to the Unit, and does NOT create any interest, charge or right in the nature of ownership in the Unit, or any right to specific performance of a sale, in favour of the Allottee. It gives the Allottee no possession of, or access to, the Unit. Ownership of the Unit will pass, and can only pass, by a registered conveyance executed after the Total Consideration is paid in full and the Agreement for Sale in Clause 6 is performed.
5.3 Nothing in this Letter obliges the Developer to sell the Unit, or the Allottee to buy it, on any terms other than those actually recorded here and carried into the Agreement for Sale; and nothing in this Letter should be read by the Allottee as meaning the purchase is complete, or that any further step, payment or agreement is a formality. It is not.
6. The Agreement for Sale to follow
6.1 Regulatory position of the Project: __________
6.2 The Developer undertakes to execute, and to present for registration, a written Agreement for Sale for the Unit — in Punjab, satisfying Section 6 of the Punjab Apartment and Property Regulation Act, 1995 wherever Clause 6.1 says that Act applies, and in every case satisfying Section 13 of the Real Estate (Regulation and Development) Act, 2016 and incorporating the statutory Agreement for Sale prescribed under that Act and the applicable State or Union Territory rules — within __________ days of the date of this Letter ("the Agreement for Sale").
6.3 The Agreement for Sale will restate, and will govern over, everything in this Letter: the Unit's final description and area, the Total Consideration, the Payment Plan, the possession date, and every other term of the sale. Where the Agreement for Sale differs from this Letter, the Agreement for Sale prevails once it is signed.
7. If the Allottee does not proceed
7.1 If the Allottee decides not to proceed with the purchase, or does not sign the Agreement for Sale within the period stated in Clause 6.2 (as extended by written agreement of the parties), for a reason other than the Developer's default under Clause 8, the Booking Amount is __________
7.2 Where Clause 7.1 records a partial refund, If this Letter records no percentage, fifty per cent of the Booking Amount is forfeited to the Developer and the balance is refunded.
7.3 A sum forfeited under this Clause 7 is retained as a genuine pre-estimate of the Developer's loss from having set the Unit aside and turned away other interest in it, and not as a penalty — see Section 74 of the Indian Contract Act, 1872 and, on a booking or earnest-money forfeiture on a sale of property, Fateh Chand v. Balkishan Das and Kailash Nath Associates v. DDA.
8. If the Developer does not proceed
8.1 If the Developer decides not to allot or sell the Unit to the Allottee, allots or agrees to sell the Unit to any other party, or does not execute and present the Agreement for Sale for registration within the period stated in Clause 6.2 (as extended by written agreement of the parties), the Developer will refund the whole of the Booking Amount, together with interest on it at __________ per cent per annum from the date it was received to the date of refund, within 15 days of that event — regardless of what is recorded in Clause 7 — and neither party will owe the other any further amount under this Letter.
9. Notices
9.1 A notice under this Letter must be in writing and sent to the other party at the address given in Clause 1, or by email to __________ for the Developer and __________ for the Allottee, by registered post with acknowledgement due, by a reputed courier, or by email.
10. Governing law and dispute resolution
10.1 This Letter is governed by the laws of India. Subject to Clause 10.2, a dispute about this Letter is a civil suit to be brought before the Civil Judge at __________.
10.2 Once the Project is registered under the Real Estate (Regulation and Development) Act, 2016 and an Agreement for Sale for the Unit exists, a dispute the Real Estate Regulatory Authority or the Real Estate Appellate Tribunal is empowered to decide should be brought there instead, and Section 79 of that Act bars a civil court from entertaining a matter the Authority or the Tribunal is empowered to determine.
11. Acceptance
11.1 Please sign and return the duplicate of this Letter in token of acceptance of the allotment on these terms.
SCHEDULE — PARTICULARS OF THE ALLOTMENT
| Particular | Detail |
|---|---|
| Project | __________, __________ |
| Unit | __________ — __________, __________ |
| Area | __________ |
| Total Consideration | __________ |
| Booking Amount received | __________, on __________ |
| Adjustment of Booking Amount | __________ |
| Payment Plan | __________ |
| Agreement for Sale due within | __________ days of this Letter |
| Allotted to | __________ |
For and on behalf of __________
Signature: ______________________________
ACCEPTANCE BY THE ALLOTTEE
__________ accept the allotment of the Unit on the terms of this Letter, and confirm having read and understood Clause 5 — that this Letter is a preliminary allotment only, does not sell or convey the Unit, and does not create any interest in it — and Clause 6, that a separate Agreement for Sale will follow within the stated period.
Signature: ______________________________
Name: __________
Date: ______________________________ Place: __________
Witnesses
- Name: ______________________________ Address: ______________________________ Signature: ______________________________
- Name: ______________________________ Address: ______________________________ Signature: ______________________________