Explain files, balloting and plot to a foreigner, please

[waheed.arshad0]

Asalamu alaikum, in the early stages of thinking of buying land in a housing colony/society somewhere in Punjab.

Just doing some initial research and reading around on blogs like Zameen but it’s not clear what is a File and what is Balloting.

Here’s what I’ve kind of worked out/guessed so far.

Plot - the actual physical piece of land that you own, entirely, as a private individual (or company etc). Not leased, not held in trust. You own it.

Balloting - now I assume this is usually when demand exceeds supply. All names get thrown into a hat and you either get picked or you don’t. Or is there another reason? Does this only need to happen if there’s more demand than available plots?
What happens if you don’t get picked, do you get your money back?

Files - this is the one that got me perplexed. What are you actually paying for here? What do you legally own or get the right to eventually own? When does a file become a physical plot?

Possession - it seems, depending on at what stage of development, even if you paid full demand 100% in cash, you don’t get possession straight away. I don’t mean days/weeks or even months. In some cases it can take years. There’s also restrictions on when you can start building/construction

Development Charge - is this a one off charge or something that needs to be paid annually?

[anarkaliantiques]

Land balloting file etc etc. Fraud 90% imho
Buy an actual on ground plot from owner, if for living purposes. Otherwise Dealers and Investor mafia is corrupt to the bone.

[uzeemujeeb]

plain money scamming aka monetary frauds are termed as 'Balloting'.

do not fall into such traps. buy only what is physically on the ground with legitimate documents under seller's name, transfer and build up perimeter fence immediately upon possession.

[UAHMAD]

Ballot is done when a new housing scheme (or new phase of an existing scheme) is launched and plots are to be alloted to its members.

If you win a plot in ballot then it may take considerable time (usually a number of years) before installment plan is ended, development is completed, and you get acquisition of the plot. Before this, there is no physical plot but only a file of it.

Many fraudulent societies (even very renowned names) tend to issue MORE files than the number of actual plots. So as members above have highlighted, this file business is a big scam.

[anarkaliantiques]

They sell aggressively, at the same time invest that money on interest, pay wages and buy land from that interest, excessive files sold can be refunded by the money accumulated over the years that is why the takes ten twelve years for people to realise that this is a soft ponzi scheme and management is involved in haram soodh khori and guirella marketing instead of land purchase and housing development for its “members” aka chumps.

20-30 lacs spent wisely over a period of three years can open a decent size cottage industry, a retail outlet or add to existing family business activities. People who spend money on new housing schemes aren’t financially savy they are mostly wage workers and housewives who are buying into the “dream” that the marketing ad sold in reality doesn’t exist, so sabr is all they can do.

[waheed.arshad0]

Thank you all for responses.
I was researching LDA City in Lahore and LDA's official website also makes reference to Ballotting results & Files. Ballotting in fact announced by the DG himself!

It's very unfortunate that it's so widespread to scam people of their hard-earned lifetime savings.
Surprised nothing has been done about it as agents openly advertise price of files. Certainly needs to be regulated, though I suppose in some cases, even the regulator has their palm greased too.

[anarkaliantiques]

LDA projects are pilot projects, 1/10 time they make it big, for every crore pati they make they have made 9 bankrupt, go with smaller developments with promising results donot buy into marketing material. Sadly, most money comes from overseas where people invest in such big amounts and still dont care if the money will be recovered or increased they just want to buy land in their homeland and they have the time 20-30 years to wait for it to mature. It is a waiting game and puts their kids (next generation) leaps ahead financially but the investor will never see a brick layed on to his land.