A demand letter in Indian real estate is a critical document issued by a builder (or seller) to a homebuyer. It serves as an official written request for payment tied to the completion of specific construction stages. It is a formal letter outlining the sender's request, its justification, and the deadline for completion.
What is Demand Letter in Real Estate?
It is an official written notice that one party sends to another to demand money, action, or adherence to a contractual duty.
This letter typically accompanies key documents such as the sale agreement, NOC (No Objection Certificate), and progress status report, and is a prerequisite for home loan disbursement.
When a particular phase, such as laying the foundation, completing the structure, or finishing utilities, is finished, the builder issues a demand letter. It highlights the exact amount due, the milestone achieved, the payment deadline, and banking instructions for the transfer.
For buyers financing their purchase with a home loan, submitting the demand letter to the lender is essential.
This communication fulfills two purposes: it ensures timely payment to maintain the project’s momentum and keeps the buyer informed and financially prepared for what’s next.
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What is a Demand Letter in Real Estate?
priya
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2025-07-11T07:39:49+00:00 2025-07-31T14:21:46+00:00Comment
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