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legal light consulting DDA Free Hold Conversion

DDA Free Hold Conversion

DDA Free Hold Conversion :  The properties from leasehold to freehold online and the charges that will apply. Delhi Development Authority (DDA) launched an online property conversion system, in a bid to bring transparency and efficiency to the process.

Any person who is the original Allottee and whose name appears in the records of DDA or L&DO can apply for leasehold to freehold conversion. If there is more than one lessee, all of them will have to sign the application for Freehold conversion.

  • Delhi Development Authority (DDA) Freehold Conversion is a legal method of transferring the ownership of an immovable property from governmental authority to an individual.
  • A Conveyance Deed is provided as a final document to the new owner of the property.
  • For the conversion of an immovable property from the leasehold to freehold, one need to apply to the concerned authority in the prescribed format.
  • 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 certified copies of the entire chain of power of attorneys has to be submitted along with the application.
  • The person applying for conversion of property from Leasehold to Freehold shall have to give a proof of possession of the property such as electricity 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 will be converted from leasehold to Freehold only after the applicant has cleared all dues like all installments, ground rents, misuse charges, damages, etc.
  • 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.

Freehold conversion of DDA property

  • In case the flat is mortgaged to a bank or any lender, the execution of the conveyance deed would be allowed, on submission of a no-objection certificate from the financial institution.
  • If there is any legal dispute pertaining to the title of the flat, conversion shall not be allowed until the legal dispute is settled.
  • In case the application for mutation or submission is pending with the DDA, the execution of the conveyance deed would be allowed, only after the necessary mutation has been carried out.

Documents required for submitting application

  • Undertaking and affidavit attested by a notary public/ first class magistrate (as per Annexure E and F of the booklet).
  • Indemnity bond attested by a notary public.
  • Proof of physical possession of the property, of the person in whose name the conversion is sought, which can include passport/ voter ID card/ electricity bill/ water bill/ house tax receipt/ ration card, etc., duly attested by the notary public/gazetted officer.
  • Copy of the demand-cum-allotment letter issued by the DDA, duly attested by the notary public/gazetted officer.
  • Copy of the possession letter issued by the DDA, duly attested by the notary public/gazette officer.
  • One passport size photograph and three attested specimen signatures of the person, in whose favour the conversion is sought, duly attested by the notary public/gazetted officer (as per Annexure J).
  • An NOC from the mortgagee (in case the flat is mortgaged), duly attested by the notary public/gazetted officer.

Freehold Conversion in DDA

  • Registration of Conveyance Deed is required for the conversion of a leasehold property in freehold.
  • A duty of 6% in case of men and 4% in case of women is required to be paid through the Collector of Stamps on the consideration amount provided in the conveyance deed, for the conversion of property into freehold.
  • Payment of official conversion charges to the concerned authorities, i.e., Delhi Development Authority (DDA).
  • A charge of Rs 100 has to be deposited through Bank Pay order during registration. A registration fee is the 1% of the total value of conveyance deed.
  • The term “leasehold” and “freehold” represent two different ways in which an immovable property can be owned.
  • While buying real estate/property, people usually get confused and may take the wrong purchasing decision without proper understanding of these two terms.
  • Freehold grants complete right of ownership of the property and the land on which it is established to the buyer, whereas leasehold only grants the right to live in a property to the tenant.
  • The ownership of a property will be granted on a permanent basis to the owner in freehold, however a buyer/tenant will be conferred temporary possession over the property in leasehold.
  • The value of the property increases by 15- 20% after the conversion from leasehold to freehold.
  • Any individual, who is the original owner/allotter of the property and whose name has been registered in the DDA or L&DO’s records, can apply for the conversion. If there is more than one lessee, then all of them are required to sign the application for freehold conversion.

How to calculate conversion charges online : You can also calculate conversion charges for your DDA flat online. Follow the process below:

  • Visit the DDA Online Challan Generation for group housing flats page.
  • Mention the zone in the first column. If you do not know the zone of your locality, you can search for it in the filter available next to it.
  • Fill the flat category and select if your property was allotted before April 1992.
  • Mention if the freehold will be in the favor of the allottee or GPA holder.

The conversion charges will be calculated automatically. You can also generate the challan from here, for making the payment.

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