Pakistan is a densely populated country, and with a rising population, the demand for commercial and residential properties in Pakistan is also increasing. Real estate is a vast and growing economic sector in Pakistan, with increasing interest among real estate developers and investors. There are four types of plot files while transferring process of properties.
Open plot file.
Close plot file.
Balloted plot file.
Possession plot file
1. Open plot file
An open file has no owner, it’s an unknown file, and people buy it for-profit purposes. It’s not officially registered in anyone’s name.
The open file, also known as trading files, deals with transfers from buyers to buyers and clients to clients.
An open file is a kind of bond/ document that guarantees people who own the files will be given a plot or land of a specific size in a particular area after a certain period, usually 2-4 years.
It has the potential for future developments. Thou it doesn’t have any legal authority or physical presence, it is not certified by any development authorities.
The pros and cons of an open file are as follows.
Pros
- It can be sold without any transfer fee
- You can also resell it anytime.
- You don’t have to pay tax on it.
- Generate fast profit in the minimum period.
Cons
- If an open file is lost, you can’t claim it.
- High risk of fraud and fake files.
- Use for trading purposes.
- Prices drop rapidly, and the chances of lower profits are high.
2. Close plot file
The close file means the final disclosure of the document or statement signed by the buyer. The close file is usually not balloted.
Some housing societies allot plot and street numbers when 50% dues are clear.
Usually, the builder/developer/authority does not give out the possession of the plot in close files. People usually invest in close files because they are cheaper.
The close file is officially transferred to the person who buys it. Different housing societies have their installment plans and policies.
Some housing societies transfer files on 50% dues clearance, and some transfer on 100% dues clearance.
Pros
- Long term investment
- Less risk of fraud.
- High legal value.
- If a close file is lost, duplicate files can be retrieved/recovered.
- It is a verified file.
Cons
- You have to pay the Transfer fee.
- You have to pay monthly installments.
- Tax Included.
3. Balloted plot file.
In balloted files, street numbers and plot numbers are allotted to the owner. Some housing societies give possessions when more than 50% of payments are cleared.
Development charges are usually not paid in balloted files, and possessions are not given to the owner due to non-clearance of development charges.
4. Possession plot file
In possession plot files, all dues, instalments, and development charges are cleared, and 100% possession of the plot is allotted to the owner.
Also, there’s no fine or penalty on possession files. You can do the construction or make boundary walls according to your choice.
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