Difference Between Allocation & Affidavit Files

Investors who frequently invest in the real estate properties of DHA often hear the terms of Allocation and Affidavit Files. Sometimes these two terms are confused for one single file type but these two are quite different as shown by the different names of Allocation and Affidavit Files. Before knowing the differences between the two terms, let’s know what actually a file is?

What is a File?

When DHA announces its new phase, it also labels the area of land where it plans to build its phase. This area is usually undeveloped and consists of land used for agricultural purposes. This land can be easily acquired at a cheaper rate. This agricultural land is usually only priced at a fraction of price, which can be 20% to 30%, of the same land after it comes under DHA possession and goes under development for civic and residential purposes.

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Therefore when DHA purchases any land from private owners, 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 can also sell their files through the local real estate market and sell those files as per the market rate.

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Files are a promise of a certain piece of plot usually (5 Marla, 10 Marla, or 20 Marla) anywhere within the announced society or phase. Usually, after the land acquisition is almost complete, DHA issues the map of that society. Afterward, in a computerized ballot system, it allocates plot numbers randomly to these files within that society and phase.

After balloting is complete and plots are mapped on DHA maps, then DHA charges a development fee from the File holders and starts developing the new phase.

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Now that the concept of file is understood, let’s now discuss what are the Allocation and Affidavit Files.

Affidavit File:

An affidavit file is a certificate issued on stamp paper against the land that has been handed over to DHA. Affidavit file is the first file after handing over the land to DHA given to the investor.

Allocation File:

An allocation file is a certificate issued once the affidavit file is transferred into the buyer’s name after paying DHA Membership Fee.

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In simple words, when DHA first issues a file to investor for his land, it is called Affidavit File. When this file is sold in the market at market rates through the real estate agents, it becomes Allocation file.

It is worth noting that without Affidavit file, allocation file cannot be obtained. Now we know what are Allocation and Affidavit Files. Let’s now discuss the differences between the two

Affidavit File vs. Allocation File:

Affidavit files can be transferred within a maximum of 3 to 4 working days. However, it usually takes more than a week for the transfer of an allocation file.
Affidavit files can be transferred between the investor and a buyer without the need of appearing in the DHA office. The investor fills in the details of the buyer on a PKR 30 or 50 stamp paper and attaches 2 x photographs of the buyer and requests DHA to transfer the allotted piece of land in the favor of the buyer. DHA issues an intimation in the name of the buyer and hands it over to the investor. The investor then gives it to the buyer after receiving the final payment.

Allocation files are transferred like any other plot, except that they are not allotted any plot number to them yet. Both seller and buyer have to be present in the DHA office to sign the transfer documents in front of the Transfer officer of DHA.

A transfer fee of Affidavit is much less than an Allocation transfer fee. A minimal rate of the transfer fee is charged usually between PKR 6,500 to 20,000 and the buyer is not charged any kind of taxes e.g. CVT, stamp duty, or any kind of advance tax.

In the case of the Allocation file, the transfer fee charged for a plot is greater than the transfer fee of an Affidavit file. All the tax formalities have to be fulfilled as well, including CVT, stamp duty, or any kind of advance tax.

- The Allocation file is usually cheaper than an Affidavit file to compensate the buyers for the extra transfer charges.

Which Option is Good for You?

Firstly, whenever buying a File, the investors must inquire if it is an Affidavit file or an Allocation file. Both are equally good for investment. Even if you purchase an Affidavit file, it will be converted into an Allocation file at one point in time. Affidavit files, however, are a preferred choice for more people as it involves much less hassle and can be transferred relatively quickly and easily.

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For buying or selling an Affidavit file or an Allocation file or further information about these two files, contact Pakistan Property Services. We provide you better consultations for your real estate matters being the authorized dealers of Bahria Town projects. For further information, you can also visit our YouTube channel where we update regularly to get to know about the new trends in real estate market of Pakistan.

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Bahria Town Lahore
Bahria Orchard Lahore
Bahria Nasheman Lahore
Bahria EMC (Bahria Education and Medical City)
Bahria Town Karachi
Bahria Homes
Bahria Paradise Karachi
Bahria Paradise Villas
Iqbal Villas Bahria Town Karachi
Quaid Villas Bahria Town Karachi
Liberty Commercial
Bahria Sports City Karachi
Bahria Sports Villas different precincts
Bahria Farm Houses
Bahria Golf City
Bahria Heights Karachi
Bahria Apartments Karachi
DHA’s in all cities of Pakistan

Many residential and commercial societies in Pakistan are evaluated carefully to help our clients make the better decision. Pakistan Property Services helps the clients invest in projects with good prospects that depend upon the parent company, developers, location, payment plan, amenities they can have in the desired project.

Lahore:

Lahore is the cultural and economic hub as well as the provincial capital of Punjab. The city is well known for its huge economic opportunities in different sectors. People come from different areas to grab these opportunities and have a residence here. Below the list of some of the top Projects in Lahore:

Karachi:

Bahria Town Karachi is a benchmark within the landscape of Karachi with its world-class excellent-planned society. This society is sketched with an area concept to supply outstanding lifestyle facilities to its residents and can introduce new benchmarks of community development in Karachi. Below the list of some of the top Projects in Karachi:

Islamabad:

Islamabad is nestled against the backdrop of the Margalla Hills. It is a modern, planned city with wide tree lined streets, large houses, elegant public buildings and well-organized bazaars. It is however; always under construction to improve transportation or develop new housing areas for its growing population. The walkways are shaded, safe, and separated from the traffic by rows of flame trees, jacaranda and hibiscus. Roses, jasmine and bougainvillea fill the parks, and scenic viewpoints show the city to its advantage. Below the list of some of the top Projects in Islamabad:

Rawalpindi:

Rawalpindi is an important administrative, commercial, and industrial centre. Its industries include locomotive works, gasworks, an oil refinery, sawmills, an iron foundry, a brewery, and cotton, hosiery, and textile mills; it also produces shoes, leather goods, pottery, newsprint, and tents. Below the list of some of the top Projects in Rawalpindi:

Rawalpindi Ring Road Latest Developments

Gujranwala:

Gujranwala is a city and capital of Gujranwala Division located in Punjab, Pakistan. It is also known as “City of Wrestlers” and is quite famous for its food. The city is Pakistan’s 5th most-populous metropolitan area, as well as 5th most populous city proper. Below the list of some of the top Projects in Gujranwala:

DHA Gujranwala Phase 1 Balloting

Multan:

Multan is city of Saints, it is best place to live if you belong to either middle class family, rich family or a poor family. The city is now develop city of Pakistan you can get every life facility here easily at low cast. Multan’s foods are very delicious especially mangoes of Multan are world famous. Below the list of some of the top Projects in Multan:

DHA Multan 5 Marla Plots
Citi Housing Multan Phase 1
Top Areas for Real Estate Investment in Multan
DHA Multan Prices 2021

Bahawalpur:

Bahawalpur lies in the heart of South Punjab and is filled with stories that surround the legacies of Kings, Nawabs and their extravagant lifestyles. Below the list of some of the top Projects in Bahawalpur:

DHA Bahawalpur

Peshawar:

Peshawar is the capital of the Khyber Pakhtunkhwa province of Pakistan. It is the biggest city of Khyber Pakhtunkhwa and is a relatively prosperous city. It is also a cultural and economic hub of Khyber Pakhtunkhwa. The city is famous for its food and tourism as it is one of the oldest cities of Pakistan with a recorded history that dates back to 539 BC. Below the list of some of the top Projects in Peshawar:

Gwadar:

Gwadar, town and seaport, southwestern Balochistan province, southwestern Pakistan. Located on the sandy Nuh headland that juts southward into the Arabian Sea, the town is an important fishing (sardines and sharks) and trade centre. Below the list of some of the top Projects in Gwadar:

Suggestions:

We can see that the Pakistan Real Estate Forecast 2021 suggests investing more in this market as it promises a huge profit in the coming future. The investors should purchase the properties at a low rate so that they can earn more by selling it once the rates are good enough.

Maps of Societies and Projects in Pakistan:

Maps are the only source to view online high resolution 24 hours updated maps of Housing Societies, Schemes, Towns, Villas and Homes in all over Pakistan. Below the list of maps of some of the top Projects in Pakistan:

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