Real estate is a very firm venture idea for the reason that rates are less unpredictable in real estate, yet there are rarer chances of losing your hard-earned money as the land asset never depreciates. It is quite valid to say that real Estate Investment in the 20th century is one of the finest means to shield capital. With real estate investment, you can build equity for the future. Real Estate Pakistan is one of the top mounting sectors in the economy of Pakistan since the start of 2021 and is still growing at a constant speed. This growth owes to the lowering of the taxes for the construction and amnesty schemes offered by the FBR.
Transferring real estate property is a common practice in real estate in Pakistan. In meek terms, transferring property ownership normally includes the house owner transferring the land’s title from one person to another. Furthermore, the property can be transferred in a multitude of ways including a gift deed, mortgage, inheritance, lease, and so on. There are several practices for transferring ownership of property:
- Leave and license agreement.
There are four types of files while transferring process of properties.
- Open plot file.
- Close plot file.
- Balloted plot file.
- Possession plot file.
Open plot file:
Open plot file is launched by societies for profits and people invest money in such file for asset trading purposes. Open the file as indicated by the name of the open-end user. This means that this file is not named to a specific person or identity. An open plot file assists as a documented promise of a piece of land having a certain area size in the planned or existing housing society or a scheme to a particular property investor. An open file is a type of documentation that sureties people who possess 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 prospective for future developments. All though it doesn’t have any lawful authority or physical presence, it is not certified by any development authorities.
The open plot file is easy to trade as one can sell it at any time without the application of taxes or other charges. With a high risk of scams and fake files, the trader needs to be very careful and should have a keen eye on the ups and downs of market rates. Open plot file has the potential of generating fast profit in the minimum period.
Close plot file:
The close plot file is not usually balloted but the file is named to a specific buyer or person. The rate of the closed file is less in the market. People usually participate in close files because they are cheaper. Usually, the authority does not give out ownership of the plot in closed files. The close file aims for long-term investment. The file holds a high authoritative value and demands a massive transfer fee. The tax imposed by the legal authority is also applicable to closed file holders.
The closed file is officially conveyed to the person who buys it and this factor reduces the chances of fraud and scams. 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.
Balloted plot file:
Balloted plot file is a real estate term given to the files which have gone through the process of assigning plot numbers in a particular real estate project to possible buyers. Basically, balloting is a draw carried out between the candidates of plots and plot files in proposed assets development. There are actually two types of balloting:
In which applicants booking properties on an installment basis take part.
The other one is known as a plot ballot in which balloting is carried out between buyers who are willing to pay the full amount to own a property as a result of which, a map with physical allotments is issued.
Possession plot file:
In possession of plot files, all payments, installments, and development charges are cleared, and 100% ownership of the plot is allotted to the owner. These plots allow you to start construction on your property at any time. Also, there’s no fine or penalty on possession files. You can construct or make boundary walls according to your choice. Various societies also allow you to have possession after some fractional amount is paid in the form of a down payment.
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