Allotment Letter, Possession Letter, OC and Sale Deed: What Each Document Proves
A new flat in Bangalore produces a stack of papers between the booking and the day the keys change hands. This guide sets out what the allotment letter, the agreement for sale, the possession letter, the occupancy certificate and the sale deed each prove, and which one makes the buyer the legal owner.
The Paper Trail in Order
Each document belongs to a stage of the purchase, and each answers a different question. Read in sequence, they show how a booking turns into a registered home. The usual order in a RERA-registered project is as follows:
- Allotment letter, issued by the developer soon after the booking.
- Agreement for sale, signed and registered before the larger payments begin.
- Occupancy certificate, issued by the plan-sanctioning authority once the building is complete.
- Possession letter, issued by the developer when the flat is handed over.
- Sale deed, registered at the sub-registrar's office in the buyer's name.
In practice the last three often arrive within a few weeks of each other. That closeness is the reason they get mixed up, and the reason a buyer needs to know what each one can and cannot do.
Allotment Letter
The allotment letter confirms that a particular flat has been set aside for the buyer. It names the flat number, floor and tower, the agreed price and the payment schedule. Banks ask for it when a home loan is processed, so it is the first paper in the loan file as well.
The letter records a reservation and nothing more. It creates no right in the land or the building, and a developer is able to cancel an allotment under its terms if payments stop. It is useful because it fixes the flat and the price in writing at an early stage.
Agreement for Sale
The agreement for sale is the contract that governs the purchase until the deed is signed. Section 13 of the RERA Act bars a developer from collecting more than 10% of the cost as an advance without first registering this agreement. It carries the carpet area, the specifications, the payment stages and the promised possession date.
A registered agreement gives the buyer an enforceable right to have the flat conveyed on the agreed terms. It is still a promise to sell in the future. Ownership stays with the developer and the landowner until the sale deed is registered.
Occupancy Certificate
The occupancy certificate (OC) is the one paper in this set that comes from a public authority and not from the developer. It is issued by the body that sanctioned the building plan after an inspection of the finished structure. Inside the city that is the city corporation under the Greater Bengaluru Authority, and elsewhere it is the BDA or the local planning authority.
The OC states that the building follows the sanctioned plan and is fit to be lived in. Under Section 11 of the RERA Act, the developer has to obtain it and make it available to the buyers. Several practical matters depend on it:
- Section 19 expects a buyer to take possession within two months of the OC being issued
- Apartment buildings need the OC for permanent electricity and water connections
- Lenders commonly link the final loan instalment to the OC
- A future buyer's lawyer will ask for it at resale
Large projects sometimes receive a partial OC for the towers that are finished. A buyer should confirm that the certificate names the tower and floors that hold the flat. An OC for a neighbouring tower proves nothing about the one being handed over.
Possession Letter
The possession letter, also called a handover letter, is the developer's record that the flat has been delivered on a stated date. That date matters. The five-year period for defect claims under Section 14 of the RERA Act runs from the handover, and maintenance charges usually start with it.
Two limits apply to this letter. It comes from the developer, so it says nothing on whether the authority has cleared the building. It also records who holds the keys, which is a different matter from who owns the flat in law.
Is a possession certificate the same thing?
The two terms are used loosely, but a possession certificate usually means a record issued by a public body. The BDA, for example, issues one when it hands over an allotted site. Like the letter, it proves delivery of the property and leaves ownership to the registered deed.
Sale Deed
The registered sale deed is the document that transfers ownership. Under the Transfer of Property Act, immovable property worth Rs. 100 or more passes by sale only through a registered instrument. The deed is executed by the developer and the landowner, stamped at the full rate, and registered at the sub-registrar's office.
The deed for a flat conveys the apartment along with its undivided share in the land. Section 17 of the RERA Act requires the developer to execute it, within three months of the OC where no local law fixes another period. Until that registration, the buyer's name appears in no public record as owner.
The deed also unlocks the steps that follow. The khata is transferred on the strength of it, and the bank holds it as the security for the loan. Our EMI calculator includes stamp duty and registration, which fall due at this stage, in the upfront cash it shows.
The Five Documents Compared
The table sets the five papers side by side:
| Document | Issued by | What it proves | Ownership |
|---|---|---|---|
| Allotment letter | Developer | A named flat is reserved at an agreed price | Stays with the developer |
| Agreement for sale | Developer and buyer, registered | The terms on which the flat will be sold | Stays with the developer |
| Occupancy certificate | Plan-sanctioning authority | The building follows the plan and is fit to occupy | Stays with the developer |
| Possession letter | Developer | The flat was handed over on a stated date | Stays with the developer |
| Registered sale deed | Developer and landowner, before the sub-registrar | Title to the flat and its share of land has passed | Passes to the buyer |
Where Buyers Go Wrong
The common mistakes come from treating one paper as a stand-in for another. Three situations deserve particular care:
- Moving in on a possession letter while the OC is pending, on an assurance that it will follow
- Paying the full price and occupying the flat for years with the sale deed still unregistered
- Buying a resale flat from a seller who holds an allotment letter or an agreement, and no deed
In the first case the buyer has paid everything and lost the leverage to insist on the certificate. In the second, the flat remains in the developer's name, and a sale or a mortgage is blocked until the deed is done. In the third, the seller has only a contractual right, and the transfer needs the developer's consent and its own paperwork.
A Sound Order at Handover
A simple sequence keeps each paper doing its own job. The OC is checked first, against the tower and the flat. The inspection and the possession letter follow, and the sale deed is registered at the same time or within the period the agreement sets.
The final payment is best tied to the OC and the deed, since both are in the developer's hands to deliver. Buyers looking at ready and near-ready homes in Bangalore are welcome to ask us which of these papers a project has reached. All five documents, with the payment receipts, should then be kept together for the life of the property.