Aiming to bring in transparency and minimize buyer-seller disputes the Maharashtra Real Estate Regulatory Authority (MahaRERA), has standardized the proforma of allotment letters.
As per the newly approved model allotment letter, now, the developer must mention the date of handing over possession of the booked property, the percentage of charges levied on cancellation of booking, parking allotment, execution of the agreement on acceptance of 10 per cent of the consideration of the flat amount.
“The common complaints earlier raised were that ‘the developer levied this much forfeiture charges’, ‘did not provide the sale agreement’ and ‘the parking allotment information was not clearly mentioned’, among others. All these will stop as the model allotment letter comes into force.
As per the model allotment letter, the builder must mention the property’s value. Besides, the timeline must be mentioned and this further gives an idea to the buyer on arranging funds for the booked property. The allotment letter brings a lot of transparency and standardisation in real estate deals.” Now, in the model allotment letter, it is mentioned that after 60 days of the cancellation of booking, a developer can only charge a maximum of 2 per cent of forfeiture fees,”
Henceforth, the developer would have to follow the model allotment letter or face action, as in the MahaRERA, there is a provision that if a developer fails to follow the notification circular issued, then the real estate authority could slap a fine amounting to five per cent of the project cost
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