Open File vs. Closed File: Dealer Inventory & Risk Guide (2026)

Last Updated: December 2025|Category: Dealer Operations

In the Pakistani real estate market, cash is king, but the 'Open File' is the queen.

For a Property Dealer, trading Open Files (Affidavit Files) is the fastest way to generate daily cash flow. They transfer instantly, require no taxes (initially), and act like 'Bearer Bonds.'

However, they are also the most dangerous asset in your office. If an Open File is stolen from your drawer, it is gone forever. Unlike a plot, which has a registered owner, an Open File belongs to whoever holds the paper.

This guide explains the operational difference between Open vs. Closed Files, the fraud risks associated with each, and how modern agencies use Inventory Tracking Software to prevent theft and 'Overselling.'

1. Difference Between Open (Affidavit) and Closed (Allocation) Files

To manage inventory, you must classify it correctly.

1.1 The 'Open File' (Affidavit File)

  • What is it?: An 'Intimation Letter' or 'Affidavit' issued by the society (like DHA, Bahria, or City Housing).
  • Key Feature: The 'Name' column is BLANK.
  • How it Trades: Just like a currency note. You hand over the file, take the cash, and the deal is done.
  • Dealer Benefit: Zero Transfer Fees. Zero Taxes (until the name is filled). High Liquidity.
  • Dealer Risk: High. If lost or stolen, anyone can fill in their name and claim it.
1.2 The 'Closed File' (Allocation / Transferred File)

  • What is it?: A file that has been formally transferred in the society's record to a specific person.
  • Key Feature: The owner's name, CNIC, and photo are printed on the letter.
  • How it Trades: It requires a formal transfer process. Mr. Ali must appear at the society office, give biometrics, pay transfer fees, and transfer it to Mr. Bilal.
  • Dealer Benefit: Secure. Cannot be stolen.
  • Dealer Risk: Low Liquidity. Takes 7-15 days to transfer.

2. Risks of Trading Open Files: Theft, Fraud & Overselling

Managing a drawer full of Open Files is like managing a drawer full of Cash. Here are the three biggest risks agencies face:

2.1 Risk 1: Employee Theft (The 'Missing Zero')

  • Scenario: You have 50 Open Files. An employee takes one file, sells it in the market for 40 Lakh, and pockets the cash.
  • The Problem: You might not notice the missing file for weeks. By the time you do, the employee has vanished. The society will recognize the current holder, not you.
2.2 Risk 2: The 'Color Copy' Scam

  • Scenario: A fraudster buys one valid Open File. They make 10 high-quality color photocopies and sell them to 10 different small dealers.
  • The Problem: Visually, they look identical. You only find out it's fake when you verify it at the Society Office and they say: 'This Serial Number is already active.'
2.3 Risk 3: Overselling (Short-Selling)

  • Scenario: You have 10 files in stock, but your sales team sells 15 files to clients, hoping to buy the remaining 5 from the market later.
  • The Problem: If the market price jumps overnight (e.g., from 40 Lakh to 50 Lakh), you are 'Short' by 5 files. You must buy them at a loss of 50 Lakh, which can bankrupt agencies.

3. How to Verify Real Estate Files: QR Code & UV Check

Never buy an Open File without a 'Live Verification'.

  • The Barcode/QR Check: Modern files (DHA/Bahria) come with QR codes. Scan them with the society's official app to see if the status is 'Active.'
  • The UV Light Test: Like currency notes, genuine files have invisible watermarks that glow under UV light. Every dealer desk should have a UV scanner.
  • The 'Society Portal' Check: Log in to the society's dealer portal and enter the File Reference Number.
3.1 Status Codes:
  • Status 'Issued': Good.
  • Status 'Blocked/Cancelled': Do not buy.
  • Status 'NDC Applied': Warning (Someone is already processing a transfer on this file).

4. Managing 'Joint Pools' (Satta Trading)

In Faisalabad and Lahore, dealers often create 'Pools' where 5 Dealers pool money to buy 100 Files of a new project.

4.1 The Risk

Who holds the physical files? If Dealer A holds all 100 files, Dealer B and C are at risk.

4.2 The Solution: Aiksol360 'Joint Venture' Module

Log the 100 files in the system and assign 'Ownership Shares' (e.g., Dealer A: 20%, Dealer B: 30%). The system tracks every sale and automatically calculates the profit share for each partner.

5. Best Practices for Inventory Security

Stop using Excel. Excel cannot track who deleted a row.

5.1 Serial Number Tracking

Every file entering your office must be logged by its Unique Reference/Serial Number.

  • Bad: '1 File of 5 Marla City Housing.'
  • Good: 'City Housing 5 Marla - Ref # CH-10293-X.'
5.2 The 'In-Out' Challan System

No file leaves the safe without a digital footprint. When an agent takes a file to show a client, they must sign it 'Out' in the CRM.

5.3 Digital 'Holding'

If a client pays a Token, mark the file as 'Reserved' in the software immediately. This prevents your other agents from selling the same file to another client (Double Selling).

6. The NDC Process: Converting Open File to Transferred File

Eventually, an Open File must be closed (transferred to a buyer). This is the NDC (No Demand Certificate) process.

  • Apply for NDC: The seller asks the society: 'Do I owe any hidden charges?'
  • Clear Dues: Pay any outstanding installments or 'Development Charges.'
  • Transfer Set: Submit the Open File + Buyer's CNIC Copy + Transfer Form.
  • Biometrics: Both parties give thumb impressions (if required).
  • Allocation Letter: The society issues a new letter in the Buyer's name. The file is now 'Closed.'
Dealer Tip: Always charge the client for 'Membership Fees' and 'Transfer Fees' separately. Do not include them in the plot price, as these government rates change weekly.

Conclusion

For Investors: Open Files offer the highest profit but carry the highest risk. Only buy from authorized dealers who issue proper receipts.

For Agency Owners: Your inventory is your capital. If you are managing 5 Crores worth of Open Files on a paper register or Excel sheet, you are inviting theft. Upgrade to Aiksol360 to track every serial number, manage agent access, and secure your hard-earned assets.

See how Aiksol360 prevents Inventory Theft

FAQs

Can I keep an Open File forever?

No. Societies often announce an 'Amnesty Deadline.' They will say: 'All Open Files must be merged/closed by Dec 31st.' If you miss the date, you may face a heavy penalty or the file might be cancelled.

Is trading Open Files legal?

It is a grey area. While widely practiced, FBR considers it 'Undocumented Economy.' However, as of 2025, FBR is trying to force societies to digitize open files so they can track the holders.

How do I value my Open File inventory?

Market rates change daily. Aiksol360 allows you to update the 'Market Rate' of a sector (e.g., DHA Phase 9 Prism) and instantly see the total value of your stock re-calculated.

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