Flat Documents Explained: Allotment Letter, Agreement, OC, Possession Letter and Sale Deed
Booking a flat in Bangalore sets off a run of documents, and each answers a separate question. The questions are whether the flat is reserved, what the terms are, whether the building is fit to live in, whether the keys changed hands and who owns it. The notes below match every paper with its question.
Reserved: the Allotment Letter
Shortly after the booking amount is paid, the developer issues a letter that names the flat and its block and floor, and states the agreed price and the due dates of instalments. Banks request it at the loan stage, so it opens the loan file.
The letter is a reservation. It gives no claim over the land or the structure, and the developer may cancel the allotment on the grounds set out in it, such as unpaid instalments. Its value is that the flat and the price are written down at the outset.
Contracted: the Agreement for Sale
A registered agreement turns the booking into a contract. Until the agreement is on the register, The RERA Act (Section 13) caps any advance a developer may take at 10% of the cost. It lists carpet area and specifications, the stage payments, and the date promised for possession.
With it, the buyer can demand conveyance on the agreed terms. Still, it only promises a later sale, so the flat stays in the hands of the seller side.
Cleared: the Occupancy Certificate
This is the lone paper that originates with a government body. After the building is complete, the agency that approved its plan inspects it and issues the occupancy certificate (OC). Inside Bangalore a city corporation of the Greater Bengaluru Authority performs this role. Outside the city, the BDA or a nearby planning authority does.
An OC states that the building was built to the approved plan and is safe to occupy. Section 11 of the RERA Act makes the developer obtain it and show it to buyers. The certificate carries real weight.
- RERA expects allottees to take possession within two months of the OC (Section 19).
- A block of flats needs the certificate before it gets permanent power and water supply.
- Home loan lenders frequently link the final disbursement to it.
- At resale, the next purchaser's lawyer will want to see it.
Partial certificates are common in big projects, issued as each tower is completed. Buyers should read the document for the exact tower and floors that house their flat.
Delivered: the Possession Letter
Some developers call this a handover letter. It states that the flat was delivered on a particular day, and that day counts. RERA allows defect claims for five years from the handover (Section 14), and the maintenance meter usually starts at the same moment.
Two limits are worth remembering. Only the developer signs it, so it proves nothing about the authority's approval. And it settles who has the keys, not who has title.
Possession certificate versus possession letter
People use the phrases as if they were one. A possession certificate commonly is issued by a public authority, as when the BDA gives an allottee the allotted site. In both cases the paper evidences delivery and the registered deed is still needed for ownership.
Owned: the Registered Sale Deed
Only a registered instrument completes the sale of immovable property worth Rs. 100 or more, the Transfer of Property Act says. For a flat, both the developer and the landowner execute the deed, stamp duty is paid in full, and the sub-registrar records it.
The deed transfers the apartment together with its undivided share of the land. RERA (Section 17) gives the developer three months from the OC to execute it, unless a local law sets another limit. Until that happens, no public register lists the buyer as the owner.
After registration, the khata can be transferred and the bank takes the deed as security for the loan. The EMI calculator here counts stamp duty and registration, payable at this stage, within the upfront cash.
All Five Compared
The grid below sets the five papers next to one another.
| What the paper is | Who signs it | The question it answers | Title after this step |
|---|---|---|---|
| Allotment letter | Developer | Is a particular flat held for me, and at what price? | Developer |
| Agreement for sale | Both parties, registered | On what terms will the flat be sold? | Developer |
| Occupancy certificate | Sanctioning authority | Is the building built to plan and fit to live in? | Developer |
| Possession letter | Developer | On what date were the keys handed over? | Developer |
| Sale deed | Developer and landowner, registered | Has the apartment and its share of the land been conveyed? | Buyer |
Where Things Go Wrong
Most disputes trace back to one paper being accepted as a replacement for another. One typical case is a buyer who moves in on the possession letter, trusting a promise that the pending OC will come later. Having paid everything, that buyer can no longer press the developer to deliver it.
Another is a family that lives in a fully paid flat for years without a registered deed. The flat stays in the developer's name, which blocks any sale or loan against it until registration. A third is the purchase of a resale flat from an owner holding only an allotment letter or an agreement. Such a seller holds only a contractual right, so passing it on needs the developer's approval and fresh paperwork.
A Sensible Handover Sequence
Check the OC first, tower by tower and floor by floor. Then inspect the flat, take the possession letter, and register the deed that day or within the period set in the agreement. If possible, link the last payment to the OC and the deed, which only the developer can deliver.
Anyone shortlisting ready homes in Bangalore can contact us to ask how far a project has progressed on these papers. Hold on to all five, with the payment receipts, in a single folder for the whole period of ownership.
