Every real estate builder issues allotment letters in their respective formats and they draft a format suitable to them. Many times the format does not have adequate information. To safeguard the home buyers, Maharashtra RERA’s model allotment letter makes several things clear, including the booking amount, cancellation amount, date of possession, when the sale agreement will be signed etc.
Key Points of the MahaRERA’s model allotment letter:
- Developer cannot charge more than 2%, in case there is cancellation after issuance of the allotment letter
- No cancellation charge should be levied if there is a cancellation within 15 days of booking
- 1% will be charged in case of cancellation between the 16th to the 30th day
- 1.5% will be charged if cancelled within 60 days
- 2% in the event of cancellation 61 days after issuing the allotment letter
- Issuance of the allotment letter is mandatory whenever a buyer pays a sum of not more than 10% of the cost of property
- MahaRERA issued the model allotment letter under Section 37 and regulation 38 of the RERA Act
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