Difference between an Open file & closed file

In big housing societies, there is a file system for the transfer of property from one person to another. Files are of two types. One is an open file and the other is a closed file.

 

Open file.

 

Open file is called to a file or a document of a property when it is bought or sold, the property is not transferred to the buyer or seller. It means a buyer is buying that property to resell the property and that’s why he doesn’t get the property transferred to himself. But the file remains as it is. The seller loses control and ownership of the property or a plot and on the other hand, the buyer doesn’t get it transferred. So, real estate agents prefer buying and selling open files. The file is remained open in order to evade purchase and gain taxes and transfer fees. Because all these purchase and gain taxes and transfer fees constitute a huge amount. Real estate agents buy a property to resell it. So, it is unlikely for them to pay this huge amount of taxes and fees.

 

 There are several advantages and pitfalls of an open file. Firstly, you do not have to pay any extra charges or amounts like transfer fees, if you are buying an open file. Secondly, your presence at the time of selling an open file is not necessary. Suppose, you are working overseas or out of the country for some reason and you need to sell the property. Someone can sell your property that is having an open file, on your behalf and you do not need to come over.

 

 With advantages it has a few disadvantages like you cannot borrow a loan from a bank on an open file and to get the loan, you are needed to transfer the file. If your open file is misplaced, then it is very difficult to attain it back as the process is very hectic and several legal obligations have to be fulfilled and even in some cases, you cannot claim. Further, some societies give a specific time frame and after that, you have to close your open file or get your property registered or transferred. And if you do not follow the procedure, you have to pay a fine and the society owners might cancel your plot.

 

Close file.

 

The file or a legal document of a property that has been transferred to a person and all the required data have been filled then this file is called a close file. This is a long-term investment, with legally more valued, and in this risk factor is rather low than in open files. If your closed file is misplaced, you can easily get a duplicate copy of your original file as data in case of a closed file is saved. If the owners of a society deceive you and don’t give you your property then with the closed file, you can register a petition against them in relevant departments like FBR and NAB. You can even get a loan with a closed file. Although you have to pay the transfer fee, purchase, and gain taxes, it is a secure way to earn, and especially, if you are thinking to invest for a long time then closed files would be the right choice for you. For example, if you buy a plot in Nova City Peshawar, register yourself, pay all dues and fulfill the procedure, it means your file is closed.

Record Marketing has taken up this opportunity to guide and provide you with the finest information about Nova City Housing Society Peshawar in a bid to ameliorate the standard of living in our country.