East Bengaluru buyer answers
Allotment letter, agreement for sale, sale deed: what is the difference?
Direct answer: An allotment letter is usually an early booking paper. The agreement for sale is the registered contract that fixes price, specifications and the possession date under RERA. The sale deed (conveyance) transfers title to you. Under section 13, a builder can't take more than 10% of the cost before that agreement is written and registered.
Disclosure: acre&key’s advice is free to buyers; we are an authorised sales partner for some projects and may be paid by the developer.
Verify with your lawyer: This page is general guidance from the RERA Act and related public sources, not legal advice. Have your own property lawyer review the documents for your specific flat before you sign or pay.
Verify with your CA: This page is not tax advice. Take stamp duty and registration amounts from official IGR or Kaveri guidance, and have your own chartered accountant confirm the figures and any tax treatment for your purchase.
Three papers with the same letterhead can look alike, but they do different jobs. One is usually a booking paper. One is the contract the Act cares about most before possession. The last one transfers ownership. Mixing them up is how a buyer pays too much at booking, or skims the deed at the end.
What is an allotment letter?
An allotment letter (sometimes called an allotment or booking confirmation) is typically the builder's written confirmation that a unit has been allotted to you after an application or EOI. The RERA Act mentions a "proforma of the allotment letter" as something the promoter files at registration (registration particulars in the Act), but the Act's hard payment rule sits on the agreement for sale, not on the allotment letter alone.
Read an allotment letter as three things: which unit is yours, a tentative price or payment plan, and a pointer to the next document. It isn't title. And once you're paying more than the statutory advance, it's no substitute for a registered agreement for sale.
What is an agreement for sale under RERA?
Section 13(1) says a promoter shall not accept more than ten per cent of the cost of the apartment as an advance payment or application fee without first entering into a written agreement for sale and registering that agreement under the law in force (s.13(1)).
Section 13(2) says the agreement must be in the prescribed form and must specify particulars of the development, specifications, internal and external development works, payment dates and manner, the possession date, interest rates payable by promoter and allottee on default, and other prescribed particulars (s.13(2)).
That's the document to read with your lawyer before the big payments start. Our guide on what to check in the builder's sale agreement goes clause by clause.
What is a sale deed or conveyance deed?
The sale deed (conveyance) is the registered instrument that transfers title in the apartment to you. Section 17(1) requires the promoter to execute a registered conveyance deed in favour of the allottee, along with undivided proportionate title in the common areas to the association, and to hand over physical possession within the timelines the section sets (s.17(1)). Until conveyance is registered, your strongest contractual footing on an under-construction buy is usually the registered agreement for sale, not the allotment letter.
How do the three documents usually sequence?
On a registered project, the papers often arrive in roughly this order:
- Application / EOI / booking form and a small booking amount
- Allotment letter naming the unit
- Registered agreement for sale once you cross (or approach) the section 13 threshold
- Construction-linked or other payments under that agreement
- Possession letter and snagging
- Registered sale deed (conveyance), usually around or after the occupancy certificate (why OC and CC matter)
The gap between allotment and agreement varies from project to project. However long it is, section 13 caps how much the builder can take before the agreement is registered.
What if I've already paid more than 10% on only an allotment letter?
List every payment with its date and amount, and take the papers to your lawyer. The rule binds the promoter clearly. What you can do about it depends on your facts, such as whether an agreement was registered later and what it says about adjusting earlier payments. If you're aggrieved, Section 31 lets you complain to Karnataka RERA (K-RERA FAQ); here's how to file a complaint with Karnataka RERA.
How should I read an allotment letter before signing?
At a minimum, check:
- Unit number, tower and the carpet area it refers to (carpet area vs super built-up)
- Whether the price is locked or "subject to"
- Payment plan and what happens if you cancel
- Whether the letter says an agreement for sale will follow, and by when
- RERA project registration number on the letterhead or annexure
If the letter asks for an amount that would take your total past 10% of the stated cost before any agreement is registered, stop and ask why.
How should I read the agreement for sale?
Besides the clause review on our sale-agreement page, confirm:
- Carpet area and specs match what you were shown
- Possession date is a calendar date you can diary
- Payment schedule matches construction stages you can verify
- Default interest both ways is filled in
- Parking and amenities match the allotment letter
What changes at the sale deed stage?
The deed should identify you, the promoter, the apartment, the undivided share, consideration, and the schedule. Your lawyer checks the title chain and encumbrances, and that the deed matches the agreement. Stamp duty and registration fees follow Karnataka's stamp and registration rules. Take the amounts from the official IGR or Kaveri guidance for your document, or from your CA, rather than from a blog. Paying duty online is covered in Karnataka Digital e-Stamp. Our list of costs beyond the base price shows where these fit, and our Kaveri 2.0 registration steps walk through the Sub-Registrar visit.
Is an allotment letter enough to hold my flat?
If you're told an allotment letter is enough to hold the unit, remember that the payment limit in section 13 is law, whatever the booking paperwork says. Ask for the draft agreement for sale early, even if the builder would rather wait. It's also worth running through the documents to verify before a token advance.
Frequently asked questions
Is an allotment letter enough to pay 20% of the flat cost?
Under section 13(1), a promoter must not take more than 10% as advance or application fee without a written, registered agreement for sale. Paying more on an allotment letter alone is a red flag, so speak to your lawyer first.
Does the agreement for sale transfer ownership?
No. It's the contract that governs the purchase. Ownership passes on the registered conveyance (sale) deed under section 17.
Must the agreement for sale be registered?
Section 13(1) requires the agreement for sale to be entered into and registered under the law in force before the promoter can take more than 10% as advance.
Can the builder cancel my allotment?
Section 11(5) allows cancellation only on the terms of the agreement for sale. Unilateral cancellation without sufficient cause can be taken to the Authority.
What should I bring to my lawyer at booking?
The allotment letter, payment receipts, RERA registration number, draft agreement for sale, and the brochure specifications you were shown.
References
- Real Estate (Regulation and Development) Act, 2016, ss. 11(5), 13, 17, 31. https://rera.karnataka.gov.in/resources/staticpage/Real_Estate_Act.pdf, accessed 16 Oct 2026.
- Karnataka RERA FAQs. https://rera.karnataka.gov.in/resources/staticpage/KARNATKA_FAQs.pdf, accessed 16 Oct 2026.
- Department of Stamps and Registration, Karnataka (IGR). https://igr.karnataka.gov.in/, accessed 16 Oct 2026.
- Kaveri Online Services. https://kaveri.karnataka.gov.in/, accessed 16 Oct 2026.
About the author
Gaurav Mongia (Market Strategy · Product · Tech, acre&key) is building data-driven evaluation models to give buyers absolute clarity. He is part of the acre&key team, each of whom has navigated Bangalore's property market personally.
This page explains public rules and processes. It isn't legal or tax advice. acre&key gives buyers advice for free. We are an authorised sales partner for some projects and may be paid by the developer.