Allotment Letter vs Possession Letter: Society Plot Documents

When you buy a plot in a housing society, you collect a series of papers over months or even years: a booking receipt, a file, an allotment letter and, finally, a possession letter. Each one means something different, and the value of the plot depends on which stage it has reached. Buyers who mix them up often pay a "possession plot" price for a plot that is only allotted on paper. This guide explains what an allotment letter and a possession letter are, how they differ, what comes in between and the checks to make before you buy.

Quick answer: An allotment letter is issued by a housing society or developer to assign a specific plot, with its number, block and size, to a buyer. A possession letter is issued later, once the plot has been developed, demarcated and fully paid for, and it hands the physical plot over to the owner so construction can begin. Allotment confirms which plot is yours. Possession confirms you can use it.

The Stages of a Society Plot

1. Booking: you pay a booking amount and receive a receipt and booking form.
2. File: the society issues a file showing your right to a plot of a certain size, often before the exact plot is known.
3. Balloting: in many schemes, plot numbers are assigned through a ballot.
4. Allotment letter: the society confirms the exact plot assigned to you.
5. Payment of instalments and charges: the remaining price, development charges and possession charges are paid.
6. Possession letter: the plot is demarcated and handed over.

Prices usually rise at each stage, because the risk falls as the plot moves from paper to ground. Our guide to plot file verification explains the checks for the file stage.

What Is an Allotment Letter?

An allotment letter is the society's formal confirmation that a particular plot belongs to you. It normally shows:

• Your name, parentage and CNIC number
• Plot number, street, block or sector and size
• Plot category, such as residential, commercial, corner or park-facing
• Total price, amount paid and the remaining instalment schedule
• Reference and membership numbers, with the society's seal and signatures

The allotment letter is an important document for resale and for any later transfer in the society's records. It is not, however, proof that the plot has been developed or that you can build on it.

What Is a Possession Letter?

A possession letter is issued when the society is ready to hand the plot over on the ground. Before issuing it, most societies:

• Check that the ownership details in their records are correct
• Confirm that all instalments, development charges and possession charges are paid
• Send a surveyor to demarcate and measure the plot
• Record whether the plot is of standard size or has excess or short area

The possession letter, often issued with a site plan or demarcation sheet, allows you to apply for building plan approval and start construction. It does not mean the whole scheme is finished, so check roads, water, electricity and gas connections yourself.

Allotment Letter vs Possession Letter: Key Differences

• Timing: allotment comes first; possession comes after development and full payment.
• Meaning: allotment identifies your plot; possession hands it over physically.
• Construction: you can usually start building only after possession.
• Price: possession plots generally sell for more than allotted plots in the same block.
• Charges: possession often has its own charges, separate from the plot instalments.

Other Society Documents You Will Hear About

No Demand Certificate (NDC)

A certificate from the society confirming that no dues are pending against the plot. It is usually needed before transfer or possession.

Site Plan and Demarcation Sheet

A drawing that shows the plot's exact position, dimensions and boundaries on the ground.

Transfer Letter

Issued when a plot is sold to a new buyer and the society records the change of ownership. Our guide to property transfer fees in Punjab covers the costs of a transfer.

Checks Before Buying an Allotted or Possession Plot

• Confirm the society is approved by the relevant authority. Our guide to LDA and CDA approved housing societies explains how.
• Verify the allotment letter directly with the society office, not just from a photocopy.
• Match the name and CNIC on the letter with the seller's CNIC.
• Check that the plot number, block and size are the same on every document.
• Ask for the latest statement of dues and an NDC.
• For possession plots, visit the site and see the demarcation pillars or boundary.
• Check the size in square feet, since societies use different marla sizes. See our guide to marla to square feet.
• Pay through the bank and complete the transfer at the society office.

If you are paying in instalments, our guide to installment property in Pakistan explains what to watch for. When you are ready to compare plots and houses, browse listings on Pakistan Property.

Frequently Asked Questions

1. What Is an Allotment Letter in Property?

It is a letter from a housing society or developer that assigns a specific plot, with its number, block and size, to a buyer.

2. What Is a Possession Letter?

It is the document that hands a developed and demarcated plot over to the owner, after which construction can usually begin.

3. Can I Build a House With Only an Allotment Letter?

Usually not. Most societies require possession and an approved building plan before construction starts.

4. Is an Allotment Letter Proof of Ownership?

It shows your right to the plot in the society's records, but you should always verify it with the society office before buying.

5. Why Are Possession Plots More Expensive?

Because the plot has been developed, demarcated and handed over, so the buyer faces less risk and can build sooner.

6. What Is a No Demand Certificate?

It is a certificate from the society confirming that no payments are pending against the plot.