Types of File Verification and Transferring Process in Real Estate
The real estate sector in Pakistan has grown rapidly over the last two decades, which has provided many investment avenues. Investing in property files is one among them. Although many investors benefit from such file trading, it is important to learn some basic elements concerning the types of property files, how their verification is done, and how one transfers them from one person to the other. This post shall explore in detail the types of property files, their verification process, and how the transfer process works. It will be beneficial for either the new investor or one already in the market to understand property file verification as it has many chances possible to save one from the impacts of fraud and secure one’s investment.
What is a property file?
A property file is a piece of paper that is usually issued by a housing society or development authority to represent a future plot or piece of land. Obviously, it is not the physical land itself as it is merely proof of booking that entitles the holder to a plot following a balloting process or development completion. Since these files have not yet been assigned to a specific plot at the outset, prices for them start off fluctuating mostly on market demand, pace at which development is taking place, and policy changes.
Importance of Property File Verification
Property file verification, prior to addressing the types and transfer procedure of property files, is extremely vital. Property file verification is a guarantee of the document’s authenticity and that it exists on the developer’s records free from any disputes, dues, unpaid amounts, or transfers.
Verification serves the following ends:
- To avert fraud and scamming: The real estate market remains highly contested with forged files and scams.
- Certification of authenticity: This guarantees the file was issued from the housing society.
- Prevention of duplication: There are some files that are duplicated and sold illegally to buyers.
- Validation of transferability: A verified file can be transferred to a new owner without hindrance.
To carry out the property file verification, the buyer must visit the developer’s office or customer care center with the necessary file number and related documents. Moreover you can contact the reputable real estate agency like Wirasat
Types of Property Files in Real Estate
Different property files are available in the market, and each has its value, status, and risk factor. Understanding these different kinds of it will help you in making an informed decision about investing.
1. Open File
An open file is a property file that is not yet registered in any individual’s name. These types of files mostly do turn up for trading during initial stages of development of the project. Since no ownership is concerned, these files can be traded several times without carrying out the process of transferring ownership.
- Pros: High liquidity, easy to own, and opportunity for investment at an early stage.
- Cons: High risk of duplicity and scams if not verified properly.
Investors looking for making fast bucks will make the most of this open file, but this must be done with extra caution. Always get the property file checked with the issuing authority before any deals.
2. Close File
Closed files sit across from open files in the spectrum of property documentation. It is at someone’s disposal and is no longer put freely in the trade circuit without some formalities for transfer. These would have been first processed and details registered with the developer.
- Pros: Less fraud, file status can be tracked, safer.
- Cons: Requires documentation and transfer fees to trade.
Investors generally convert open files into closed files when they are either ready for balloting or want to protect their investment under their own name. And property file verification is once again a necessary process before initiating the transfer process.
- Pros: High liquidity, easy to own, and opportunity for investment at an early stage.
- Cons: High risk of duplicity and scams if not verified properly.
Investors looking for making fast bucks will make the most of this open file, but this must be done with extra caution. Always get the property file checked with the issuing authority before any deals.
3. Balloted File
Balloted files are property files that have a very specific plot number assigned to them through a formal balloting process by the housing society. These files are more valuable because they correspond to an actual piece of land attached to a location on the map.
- Pros: Higher market value, better resale potential, eligible for possession after development.
- Cons: Premium prices, less supply, requires checking the map location.
When dealing with a balloted file, it is very important to get plot number, location, and development status verified from the official sources of the developer. At this stage, the verification of the property file makes sure that the plot details coincide with what has been given on the map of the society.
4. Possession File
A possession file is one in which all development work has been completed, and the housing society has handed over possession of the plot. These are the safest and most precious types of files since they offer either immediate or near-immediate access to the physical property.
- Pros: Ready for construction, lowest risk, and the safest investment.
- Cons: Highest price point, and less speculative upside.
Possession files suit an end-user looking to construct a house or an investor looking for stable, long-term capital growth. Property file verification in this case would include possession letters, utility availability, and NOCs from authorities.
Transfer Processes of Files in Real Estate
Having discussed the different types of property files, let’s now look at the procedure for transferring these from one owner to another. The file transfer process slightly differs in almost every housing society, but it usually encompasses these steps:
Step 1: Verification
Both seller and buyer have to verify the file before it can be transferred. To accomplish this, one has to visit the developer’s office with all original files, CNICs, and booking documents. A few societies allow the verification of property files online, thus speeding up the process and making it all the more convenient.
Step 2: Sales Agreement
A sales agreement is a contract between the buyer and the seller. It contains all the payment terms plus file information and obligations required of both parties.
Step 3: No Objection Certificate (NOC)
The seller is required to have a NOC from the housing society. This is a certificate that states the file is free from litigation, dues or ban.
Step 4: Transfer Application
The seller is required to have a NOC from the housing society. This is a certificate that states the file is free from litigation, dues or ban.
Step 5: Biometric Authentication
Most of the reputable societies nowadays carry out biometric verification for authentication of the transaction for impersonality and fraudulent transactions.
Step 6: Issuance of New File
This completes the above processes and will now either issue new files or alter existing ownership details in their records. The buyer now becomes the official file holder.
Conclusion:
Proper due diligence can make investing in property files very profitable. Different property files-such as open file, close file, balloted file, and possession file-should be understood by investors to assess their risks and prepare investment strategies. However, the foundation of any safe transaction lies in property file verification. Whether you are buying a new file, transferring ownership, or checking its balloting status, always take the last step by relying on official verification to protect your investment.
