A lot of trading in DHA , may it be Lahore , Multan or any other place is being done in Files . There are basically two types of Files available in the market The Affidavit File and The Allocation File. It is important to educate yourself about the Differences between Affidavit and Allocation File if you wish to purchase or trade in DHA Files. Before moving forward with the differences between Affidavit and Allocation file we must first understand what is a File.
When DHA announces a society or a phase , it also marks the area where it plans to build that society or a phase. This area is usually undeveloped consisting of agricultural land which can be acquired at a cheaper rate. This agriculture land is usually only priced at 20 to 30% of the same land after it comes under DHA possession and goes under development for civic purpose. Therefore when DHA Purchases any land , it issues a certain number of Files in favor of the investors against it as payment. The investors who have sold that piece of land to DHA will than go to local real estate market and sell those files as per the market rate.
Files are a promise of a certain piece of plot usually (5 ,10 or 20 Marla) any where with in the announced society or phase. Usually after the land acquisition is 90% complete DHA issues the map of that society. Afterwards in a computer ballot it allocates plot numbers randomly to these files within that society and phase.
After Balloting DHA charges development fee from the File holders and starts developing the society or the phase.
The initial files issued to an investor against his land are called as Affidavits before they get sold off and become Allocations.
Differences Between Affidavit and Allocation File
Affidavit files can be transferred between the seller and a purchaser without the need of appearing in DHA office. The seller fills in the details of the purchaser on a 30 or 50 Rupees stamp paper and attaches 2 x photographs of the purchaser and requests DHA to transfer the alloted piece of land in the favor of the purchaser. DHA issues an intimation in the name of the purchaser and hands it over to the seller . The seller than gives it to te purchaser after receiving the final payment.
Allocation files are transferred like any other plot, except that they do not have a plot number allotted to them yet. Both seller and purchaser have to be present in the DHA office and sign documents in front of the Transfer officer.
Transfer fee of Affidavit is much less than an Allocation. The transfer fee is charged at a minimal rate usually between 6500 to 20000 PKR and The purchaser is not charged any advance tax, CVT or Stamp duty .
In case of Allocation the transfer fee is charged for a plot which is a bit more than the transfer fee of an Affidavit file. All the tax formalities have to be fulfilled as well , including advance tax , CVT and stamp duty.
The Allocation file is usually cheaper than an Affidavit file to compensate for the extra transfer charges.
Affidavits can be transferred within 3 to 4 working days at the max , however it usually takes 7 to 10 days for the transfer of an allocation.
Which one is Good for you?
Firstly whenever buying a File , you must inquire if it is an Affidavit or an Allocation. Both are equally good and anyways even if you purchase an Affidavit it will become an Allocation afterwards. Affidavits however are a preferred choice for more people as it involves much less of hassle and can be transferred relatively quickly.
Captain Shahnawaz Bhatti (Retd) is the founder and CEO of Imlaak which is based in DHA Lahore. He has represented a large number of investors in a wide array of real estate transactions. With more then 8 years experience in commercial real estate, marketing and real estate project management, he has a proven track record of guiding national and multi-national clients with their real estate portfolios and asset management. He is also an active real estate blogger and offers free advice through his articles. Imlaak handles real estate transactions valued at well over 9000 million every year. Our specific area of expertise includes strategic planning , transaction management, asset trading, partnerships & venture capitalist with experienced business owners, entrepreneurs, inventors & some proven-concept start-ups. In a very short time, Imlaak has introduced a new vision of professionalism, transparency and hard work in the real estate industry. ‘There is no better time to invest in real estate than today’ Captain S. Bhatti