Difference Between Allocation and Affidavit Files
When investing in DHA Lahore, DHA Quetta, or any DHA project across Pakistan, you’ll often hear about two main types of files: Allocation Files and Affidavit Files. Understanding the difference between them is essential for making safe and profitable property investments.
What is an Affidavit File?
- Issued Directly by DHA: Affidavit files are created against land acquired by DHA. They are the first stage of file issuance.
- No Transfer Fee: When affidavit files are sold, DHA does not charge a transfer fee. This makes them slightly cheaper to transfer compared to allocation files.
- Tax Benefits: Buying affidavit files usually involves less taxation because they are treated as fresh issuance from DHA.
- Market Value: Their market price is generally a little lower than allocation files, but they carry equal credibility since they are DHA-backed.
What is an Allocation File?
After Transfer of Affidavit File: When an affidavit file is transferred to a buyer, it becomes an Allocation File.
- Transfer Fee Applies: DHA charges a transfer fee on allocation files, which increases the transaction cost.
- Higher Demand: Since allocation files are already transferred, they are more liquid and easier to buy/sell in the secondary market.
- Market Value: They are usually priced slightly higher than affidavit files due to their transfer status and greater liquidity.
Key Differences at a Glance
| Feature | Affidavit File | Allocation File |
|---|---|---|
| Origin | Issued directly by DHA against land | Created when affidavit file is transferred |
| Transfer Fee | Only DHA Charges | Yes (DHA charges transfer fee + Govt. fee etc) |
| Taxation | Lower | Higher |
| Market Liquidity | Higher (easier to trade) | Moderate (complete transfer process involved) |
| Price | Slightly higher (due to low transaction cost) | Slightly lower (due to high transaction cost) |
Which One Should You Choose?
- Affidavit Files are better if you want to save on transfer costs and taxes.
- Allocation Files are better if you want quick resale liquidity and market recognition.
Both are 100% DHA-backed and secure, so the choice depends on your investment strategy.
Conclusion
The main difference between Affidavit and Allocation files lies in how they are issued and traded. Affidavit files are DHA’s original issuance with no transfer fee, while allocation files are created after transfer and carry a fee but enjoy greater liquidity.
For the latest DHA file rates and guidance on which type suits your investment, join eProperty® WhatsApp Channel or contact Atif Iqbal – CEO eProperty® (21 years of trust).
Leave a Reply