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DDA 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.  

We offer consultancy services regarding the application and documents required. We will guide you through the entire process of freehold conversion and will also take care of the required documents. We offer all these services at nominal and reasonable price.  

For the conversion of an immovable property into freehold, one will require photocopies of different documents depending upon the authority (DDA) and type of property (residential, commercial).

Documents Required for the Conversion

Photocopies of documents required for conversion are:

  • Letter of allotment or allocation
  • Letter of Possession and Possession slip
  • Perpetual Lease Deed
  • Proof of Possession like electricity bill or water bill
  • Bank challans regarding the payment of instalment, rent, service charges and etc.
  • Photographs

A duly filled application form along with the original documents such as indemnity bond, affidavit, and undertaking on Non-Judicial stamp paper will be required for freehold conversion.

Besides these documents, an applicable conversion charges along with requisite stamp duty has to be paid for conversion.

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.

The DDA was established in 1957 and regulates the areas formed and developed thereafter. However, there are some old colonies that are under the control of Old Scheme Branch of DDA, which includes Karol Bagh and Daryaganj. On the other hand, the jurisdiction of Land and Development Office (L&DO) extends to entire New Delhi and central Delhi that were existed and developed during or before the time of partition of India. It was established for providing residence to the refugees came to India from Pakistan. The areas covered under L&DO includes Tilak Nagar, Malviya Nagar, Jangpura, Lajpat Nagar, Patel Nagar, Ramesh Nagar etc.