ISSUE OF ALLOTMENT LETTER OF A PARTICULAR FLAT IN A PROJECT BY BUILDER/HOUSING SOCIETY

C S PATANKAR (Querist) 05 December 2010 This query is : Resolved
Generally while pursuing Bank Loan to buy property, Builder/Housing Society issues an Allotment Letter to the buyer which gives details that what is the description of the subject property being sold/bought by the two parties and also it mentions the amount of money which buyer has paid to the builder/housing society, such that remaining amount can be financed by the bank.

On the basis of this Allotment Letter generally bank finances the remaining amount.

As such the Allotment Letter also gives all the pertinent details of the Property being bought/sold and also about the specifications of the Project on the whole.

What is the significance of the Allotment Letter, is it the same that of the Agreement of Sale generally documented on a Stamp Paper, whereas the Allotment Letter is on a simple piece of paper?

If on one of the pertinent aspect which is mentioned in the allotment letter, builder refuses to give adequate documentary proof subsequently, because of which buyer does not make subsequent payment and demands that unless builder satisfies him fully on that disputed aspect he shall not make subsequent payment, and finally Builder refunds the buyer all the money he has paid to him so far.

Can Buyer make out a case of Breach against the Builder as Builder has failed to furnish documentary evidence of Municipal Approval of one of the very pertinent aspect of the project, say Shopping Complex/Restaurant or a Swimming Pool?

Follow Query

Report Abuse

Arun Kumar Bhagat (Expert) 05 December 2010
Yes he can make for breach of trust.

Devajyoti Barman (Expert) 05 December 2010
The allotment letter is definitely an acceptance of the offer of the buyer to purchase the property. So you better approach the civil court by filing a suit for specific performance of contract.