For a new flat the order is usually: booking and allotment letter, then a registered agreement for sale in the Karnataka RERA format, then the sale deed after the occupancy certificate. For a resale flat there is often no allotment letter: you sign an agreement for sale with the seller and then register the sale deed. This guide explains each paper, what it costs, when it must be registered and what to check before you sign.

What is an allotment letter, and does it bind you?

An allotment letter is the builder's written confirmation that a specific unit has been set aside for you after you pay a booking amount. It usually names the flat, the price and a payment schedule. It is not a transfer of property and it is not the agreement for sale that RERA requires.

Two rules limit how much an allotment letter can do to you. First, Section 13(1) of the RERA Act says a promoter shall not accept more than 10% of the cost of the apartment as an advance or application fee without first entering into a written agreement for sale and registering it. Second, Karnataka's RERA rules, amended by notification dated 12 June 2020, added Rule 8A. It prescribes the agreement format (Annexure-A) and says any application, letter of allotment or other document signed before the agreement for sale shall not be construed to limit the allottee's rights under the agreement or the Act.

  • Pay no more than 10% before the agreement for sale is executed and registered.
  • Read the cancellation terms. The Karnataka model agreement lets the promoter forfeit the booking amount if you cancel without the promoter's fault, with the balance refunded within 60 days.
  • Check the project's RERA registration before paying anything. Builder-buyer clauses to watch: The Builder-Buyer Agreement: Clauses You Must Check

What is an agreement for sale in Karnataka?

An agreement for sale is a contract in which the seller promises to sell and you promise to buy on stated terms. Section 54 of the Transfer of Property Act says a contract for sale does not by itself create any interest in the property, a point both top-ranking guides make. Until the sale deed is registered, the seller remains the legal owner.

For RERA-registered projects, Section 13(2) requires the agreement to state the construction particulars, specifications, payment dates, possession date and the interest rates each side pays on default. In Karnataka it must follow Annexure-A. That format records that you get exclusive ownership of the flat plus an undivided proportionate share in the common areas, and it commits the promoter to execute the conveyance deed within 3 months of the occupancy certificate.

Agreement for sale vs sale deed: the differences that matter

  • Ownership: the agreement gives a contractual right to buy; the registered sale deed transfers title.
  • Registration: the sale deed must be registered to transfer ownership. For RERA projects the agreement must also be registered before the promoter takes more than 10%. For a resale deal, registration of the agreement is not strictly required, but Section 17(1A) of the Registration Act means an unregistered agreement cannot support a part-performance defence under Section 53A of the Transfer of Property Act.
  • Stamp duty: 0.5% of consideration on an agreement without possession; full conveyance duty on the sale deed (see the next section).
  • Timing: agreement at booking stage (new) or after negotiation (resale); sale deed at handover (new) or on final payment (resale).
  • Remedy if the other side backs out: on an agreement, a suit for specific performance or refund with interest; on a registered sale deed, you already own the flat.
  • Khata: e-khata transfer to your name runs off the registered sale deed, not the agreement.

How much stamp duty is paid on an agreement for sale in Karnataka?

This is where the top-ranking pages are out of date. One of them still quotes 0.1% capped at ₹20,000. The Karnataka Stamp (Amendment) Act, 2023 (Karnataka Act 4 of 2024), published in the gazette on 3 February 2024 and in force at once, changed Article 5(e)(ii). The rate went from ten paise to fifty paise per ₹100, which is 0.5%, and the ₹20,000 maximum was removed. The ₹500 minimum stays.

Article 5(e)(i) is different. It applies where possession is delivered or agreed to be delivered before the conveyance, and the Supreme Court noted in N.M. Theerthegowda v. Y.M. Ashok Kumar (2 September 2024) that it prescribes the duty payable on a conveyance. In January 2026 the Karnataka High Court held in Tulasamma v. M.S. Seethalakshmi that the higher levy did not apply where the buyer already had possession before the agreement. If your agreement hands over possession, have a lawyer check which clause applies.

  • Illustrative: agreement for a ₹1.2 crore flat without possession: ₹1,20,00,000 × 0.5% = ₹60,000.
  • The same agreement under the pre-2024 rule: 0.1% would be ₹12,000, within the old ₹20,000 cap.
  • The construction agreement used in many Bengaluru new-flat deals is stamped separately. We could not confirm one standard rate for it, so ask the sub-registrar or your lawyer which article applies to your draft.

How much stamp duty is paid on a sale deed?

On a sale deed for a flat above ₹45 lakh, the working figure is 7.6% of the higher of the price and the guidance value. The South First reported on 30 August 2025 that the registration fee doubled from 1% to 2% with effect from 31 August 2025, taking the total levy from 6.6% to 7.6% (5% stamp duty, 2% registration, 0.5% cess and 0.1% surcharge).

When is each document signed and registered?

  • New flat, step 1: booking and allotment letter. Keep it to 10% or less.
  • New flat, step 2: agreement for sale in the Annexure-A format, executed and registered. Under the model agreement, if you do not sign and appear before the sub-registrar within 30 days of receiving it, and do not fix that within 30 days of a notice, the application can be treated as cancelled and your deposits returned without interest.
  • New flat, step 3: sale deed within 3 months of the occupancy certificate, per Section 17 of the RERA Act and the Karnataka model agreement. Check the OC first: Occupancy Certificate vs Completion Certificate in Bengaluru: What to Demand Before You Take Possession
  • Resale flat: agreement for sale with a modest advance, then the sale deed. Any document has to be presented for registration within four months of its execution under Section 23 of the Registration Act, so do not let a signed deed sit.

What to check before you sign each document

  • Allotment letter: unit number, carpet area, price break-up, the booking amount and the refund terms.
  • Agreement for sale: carpet area as defined under RERA, the payment plan tied to construction stages, the possession date, delay interest, the specification schedule, the UDS or undivided share, parking and the OC/CC commitment.
  • Sale deed: the property schedule, khata details, UDS, the consideration and the guidance value used, and that the seller's or builder's title chain matches the encumbrance certificate. How to read land records: Bhoomi, Kaveri 2.0 and e-Khata: How to Check Karnataka Land Records Online Before You Buy (2026)
  • All three: names exactly as on Aadhaar and PAN for every buyer and seller.

What if the builder or seller does not execute the sale deed?

With a registered agreement in a RERA project, you can file a complaint with Karnataka RERA for delayed conveyance or possession. The model agreement also says the promoter must compensate the allottee for loss caused by defective title of the land. In a resale deal, the usual route is a civil suit for specific performance of the agreement. Either way, a registered agreement, payment receipts through bank channels and a clear paper trail are what give you leverage.

Comparing under-construction projects at this stage? Two examples on our site with published price lists: Provident Equinox 6 Kengeri Mysore Road and Jasper And Iridium At Brigade El Dorado Thanisandra. For more, see Under Construction, Bangalore