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Allotment Letter Vs Agreement

Allotment Letter Vs Agreement

Often, developers or distributors fail to provide the amenities promised during final delivery. In such cases, a letter of attribution serves as legal and valid proof of promised amenities. In addition, in the case of unfinished projects or real estate, it is the only document used as valid and legal proof of the property transaction. This is an important document for the use of the financing facility of the major banks, since the letter mentions the amount of the agreement to be paid to the owner so that the remaining value can be financed by the bank. Once the award letter is issued, the client must track the balance so that the total amount paid is 10% of the total lump sum value. Once the 10 percent threshold is exceeded, the developer must execute a registered contract to sell with the customer. The importance of an award letter in real estate purchase Real estate is a constantly growing sector in India. And as new players go into business every day, the multiple options and enticing projects can weigh on your hard-earned money if you`re not careful. Buying real estate in India can be a currency disaster if you are not aware of the proper legal process. Thousands of homebuyers in India are suffering the catastrophe of delayed ownership and must expect psychological torment and monetary policy losses. While some of us invest in finished and ready-made housing, many of us choose to invest in under-built projects and real estate because of their economic rates and prospects.

In cases where the investment is invested in an under-built or unfinished project, an award letter serves as a decisive document when buying the house of your dreams. A letter of award is made available to the potential purchaser of a project under construction by the owner or developer as soon as the buyer pays 15% of the value of the land to the owner or developer. The Importance of a Letter of Award when purchasing real estate At most, the letter of attribution contains the facts and figures relating to the prospected property and its various details. This means that the award letter specifies the details of the construction, plans, architectural details and other technical aspects of the project/land and clearly mentions the amount of money to be paid to the contractor during delivery or completion. In addition, in the case of unfinished projects or real estate, it is the only document used as valid and legal proof of the property transaction. This is an important document for the use of the financing facility of the major banks, since the letter mentions the amount of the agreement to be paid to the owner so that the remaining value can be financed by the bank. Often, developers or distributors fail to provide the amenities promised during final delivery. In such cases, a letter of attribution serves as legal and valid proof of promised amenities. The importance of a letter of award and its role in the acquisition of real estate is so important that it was held by the MAHA RERA Tribunal that a letter of award also allows the purchaser to claim reimbursement of a reserved accommodation with interest pursuant to Section 18 of the RERA Act in 2016.

Among the various details displayed in an award letter on an unfinished project or a sub-built property, here are some of the most important details that contain a letter of attribution: details of payment options, details of housing or property, construction conditions, construction schedule, amenities promised by the developer or contractor such as parks, fitness room, auditorium, public temples, shops, etc.

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