Freehold Conversion in DDA, Delhi
The terms Leasehold and Freehold are used in connection with land property, these are two different ways in which properties can be owned. One of the first problems people come across when buying a house is understanding the difference between leasehold and freehold. They may take wrong purchasing decisions without understanding the difference between these terms.
Difference Between Freehold & Leasehold
- Freehold confers full rights of ownership of the property and the land on which it stands to the buyer whereas under leasehold, the buyer does not become the owner but only gets the right to live in the property. In other words buyer of lease hold property will be owner of the structure but the ownership of land underneath the property will belong to that agency who has granted lease hold rights such as D.D.A., Land and Development Office, Municipal Corporation of Delhi, Directorate of Industries, Slum & J.J./Delhi Shelter Board etc.
- Buyer of leasehold property has to bear additional annual Lease money/Ground rent costs whereas freehold property buyer has no responsible of any such payment except Property tax payable to Municipal Corporation by all the property owners of freehold as well as lease hold property.
- The ownership of a Freehold property is transferred forever whereas, in case of a leasehold property, it is for a fixed period of time mentioned in the lease deed of the property. Normally the lease is for 99 years.
- Conversion of a property from Leasehold to Freehold, increases the value of the property by 20%-25%.
- It is important to note that, with effect from 27th April 2012, Sale of Properties through General Power of Attorney has been banned in Delhi, in view of the Supreme Court judgement dated 11th October, 2011 given in the case of Suraj Lamp & Industries Pvt. Ltd. Vs. State of Haryana.
- However, you can sell a property by first getting your property converted from Leasehold to Freehold and then executing a Sale Deed in favour of the purchaser. You may contact us to know, whether your property is eligible for conversion from Leasehold to Freehold and the procedure for Freehold Conversion.
Who can apply for Freehold Conversion ?
- Any person who is the original Allottee and whose name appears in the records of DDA or L&DO can apply for the conversion. If there is more than one lessee, all of them will have to sign the application for Freehold conversion.
- Any person who is a holder of power of attorney can also apply for the Freehold conversion by specifying in the application, the name of the person in whose favour conversion is sought to be done. If there are a series of power of attorneys, then attested/certified copies of the entire chain of power of attorneys has to be submitted along with the application.
- The person applying for Freehold conversion shall have to give a proof of possession of the property such as electricity bill, water bill, telephone bill, etc.
- In case of conversion of co-operative group housing society flats, the applicant shall also have to furnish a No-Objection Certificate (NOC) from the respective Co-operative Group Housing Society.
- Property can be converted from leasehold to Freehold, even if there is an unauthorised construction or any misuse on payment of damages or misuse charges. However, if there is any unauthorised encroachment on public land, conversion would not be permitted.
- If the power of attorney holder has died, his legal heir can apply for the conversion process.
- Property will be converted from leasehold to Freehold only after the applicant has cleared all dues like all installments, ground rents, misuse charges, damages, etc.
- The jurisdiction of L&DO extends to the entire New Delhi, Central Delhi and colonies which were in existence or were developed at the time of partition of India for providing residence to the refugees that had come to India from Pakistan at the time of partition. The DDA, on the other hand was established in 1957 and controls the areas which were bought up and developed by it thereafter. However, some old colonies like Karol Bagh, Darya Ganj are also under the control of Old Scheme Branch of DDA.
- Upon the successful conversion of property from leasehold to Freehold, a conveyance deed would be issued to the owner. The conveyance deed mentions that the Vendee has now become the absolute owner of the said property and that he shall now be free to use it in any manner as he deems fit.
Important Points to note for the Registration of Conveyance Deed in Delhi are :
1. For conversion of lease hold property into free hold property, duty @ 6% in case of men and 4 % in case of women has to be paid through Collector of Stamps / SDM on the consideration amount mentioned in the Conveyance deed.
2. Official Conversion Charges are to be paid to the concerned authority such as Delhi Development Authority (DDA) or Land and Development Office (L&DO).
2. Registration fee is 1% of the total value of Conveyance Deed. In addition, Rs. 100/- as pasting charges have to be deposited at the time of registration through Bank Pay order.
We handle the entire process of freehold conversion of DDA Flats and Group Housing Society Flats.
We will be providing the following services :-
1. Applying for Freehold Conversion
2. Drafting and preparation of all the above mentioned legal documents
3. Attestation of the Documents
4. Deposit of Freehold Conversion Fee with the DDA
5. Follow up and visiting DDA Office on your behalf
6. Purchasing Stamp Papers for registration of Freehold Conveyance Deed
7. Getting the Conveyance Deed registered in the Sub Registrar Office
8. Providing you the delivery of Original Conveyance Deed after registration
9. You won't need to visit the DDA office again and again to pursue your conversion case, as that part would be taken care
of by us. You will have to visit the DDA office just once - at the time of Registration of Conveyance Deed.
To Get your Leasehold Property like DDA Flats or Group Housing Society Flats Converted to Freehold in Delhi
from DDA , you may Contact Us At 08800418408
Click Here to Read the Leasehold to Freehold Conversion Guidelines
Click Here to view the List of Documents Required for Freehold Conversion
Disclaimer: The information contained in this website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. The use of this web site, and the sending or receipt of information does not create an attorney-client relationship. By using this website you agree that there has been no advertisement, solicitation, invitation or inducement of any sort whatsoever from us to solicit any work through this website. Liaison, leasehold to freehold, freehold conversion dda, leasehold to freehold conversion, Nagar, Enclave, South, Delhi, Colony, Sale Deed, Rent, Lease Agreement, Gift, Vihar, East, Place, West, Advocate, Solicitor, Bagh, Kunj, Lawyer, Park, Road, Garden, Pur, Extension, Ganj, Block, New , Old, Nagar, Colony, Extn.,