Whenever DHA plans a new project, it marks the land where it is going to launch that project. The land is usually the cheapest agricultural land. DHA then engages with local property agents and investors who purchase the land from landowners and hand over to DHA. Landowners can also transfer their lands to DHA and get affidavit files.
If you ever happen to purchase something in any new projects of DHA across Pakistan, i.e. DHA Multan, DHA Peshawar or DHA Bahawalpur, you will be faced with allocation files and affidavit files with significant price difference. This question normally irks a lot of new entrants in DHA marketplace as to what could possibly be the difference between the two types causing this price difference. There are already many clear definitions available on the web which mark the distinction between the two file types. We are just copying the simplest explanation for easy understanding of our readers.
Let us first understand where these affidavit files come from:
Once the land is transferred to DHA after completion of all legal requirements like fard checking, newspaper advertisement and registry, DHA will issue a file to the land owner/investor that will entitle him to have a certain size of plot allotted to his name, any relative or any new buyer. Usually DHA offers 1 kanal file against 4 kanal land transferred to its name free of charge. That file just covers the cost of land but development charges are applicable when development schedule is announced by DHA.
Whenever that landowner having the affidavit file wants to transfer his file to any new buyer, he will prepare an affidavit on 30 or 50 rupees stamp paper with details of purchaser and submit to DHA requesting it to allot the plot in the name of the new purchaser.
Once the affidavit is submitted to DHA for transfer, it cannot be canceled by seller or DHA without permission of purchaser. After the seller receives intimation letter from DHA on purchaser’s name, he will hand it over to the purchaser and get his money through payorder.
Usually allocation letter is issued after a certain number of days after the intimation letter is issued, however you can pay urgent fee to get allocation letter within 2 to 3 days.
Once allocation letter is issued to the purchaser, that becomes allocation file. That file is transferable like any other plot in DHA which requires both buyer and seller to be present in DHA office for transfer.
In a nutshell, DHA issues affidavit files to land owners which become allocation files after transfer. There is no difference in the intrinsic value of both file types, however affidavit files are preferred by investors due to a number of reasons mentioned below:
- Purchaser do not need to be present for affidavit file transfer.
- Purchaser and seller both must be present in DHA office for allocation file transfer.
- Affidavit transfer fee is less than allocation.
- Affidavit file purchaser doesn’t pay any tax but only DHA fees.
- Allocation file purchased has to pay all applicable taxes and DHA fees.
- Affidavit file transfer takes 3 to 5 working days.
- Allocation file transfer takes 5 to 8 working days.
Affidavit files have higher demand in the market and its price is also a bit higher due to its cost and time benefits. Unless the allocation letter has been issued, the affidavit file won’t be included in the ballot, so it must be turned into allocation file in order to go into balloting.