Allotment Letter vs Possession Letter: What You Actually Own

Understanding the difference between allotment, possession, and transfer in housing societies and CDA sectors.

In Pakistan's planned housing societies and CDA sectors, there are several stages of ownership. The Allotment Letter confirms you have been allocated a plot — but you do not have physical possession yet. The Possession Letter (or Ballot Confirmation) means the specific plot number has been assigned and you can take physical possession. The Transfer Letter means the plot has been formally transferred to you in the developer's record. Only after you have the Transfer Letter and the development charges are paid can you construct or further sell the plot. Many disputes arise from buying property based on an allotment letter alone, when the actual plot has never been balloted or developed.

Property law in Pakistan is complex because it sits at the intersection of multiple legal systems: the Registration Act 1908, the Transfer of Property Act 1882, provincial land revenue codes, local development authority regulations, and Islamic personal law for inheritance matters. Each province has its own stamp duty rates, registration fees, and procedural requirements. The situation is further complicated by the parallel existence of several record-keeping systems: the Sub-Registrar's registration record, the Patwari's revenue record (Fard), and the development authority's allotment record (for planned housing societies).

For overseas Pakistanis, property transactions carry additional risks because they must rely on agents or family members to manage the physical aspects of the transaction. Power of attorney fraud is a significant concern. LexForm advises overseas clients to use irrevocable special powers of attorney (limited to the specific transaction), conduct independent title verification before committing funds, and use secure banking channels for all payments.

How LexForm Can Help

LexForm provides comprehensive property law services including title verification, transaction documentation, mutation coordination, and litigation. We represent clients before civil courts, rent controllers, revenue courts, and the Board of Revenue. For overseas Pakistanis, we handle the entire process through power of attorney. Contact us at info@lex-form.com or WhatsApp +92-323-2999999 for a free consultation.