Allocation vs. Affidavit vs. Open Affidavit: The Legal Distinctions
In the Defence Housing Authority (DHA) framework, a "file" represents an official certificate of entitlement for a future residential or commercial plot before on-ground map allocation. Understanding the distinct legal categories prevents expensive tax surprises and transaction delays:
1. Allocation Files:Issued directly to original land-owning farmers in exchange for land acquired by DHA under official land pooling agreements. When an investor buys an allocation file, the first formal transfer through the DHA transfer branch converts it into the buyer's name.
2. Affidavit Files: Issued after the first transfer milestone, bearing the official stamp and seal of DHA. Affidavits are considered the gold standard of trading liquidity because their ownership history is fully verified in DHA central databases.
3. Open Affidavit Files:Fully verified affidavit files that have not yet been registered in a specific individual's name. Short-term investors frequently hold open affidavits to trade within 30 to 90 days, legally minimizing interim stamp duties and transfer registration dues before final balloting.
