How to sell a DDA flat?

If you are a prospective home buyer in Delhi, purchasing a DDA flat could be an excellent investment option due to its affordability and quality construction. The Delhi Development Authority (DDA) is the land authority responsible for the planning and construction of several housing projects in the city. The DDA launches several housing schemes in Delhi, offering flats, from luxury to affordable flats, catering to different income groups such as Low-Income Group (LIG), Economically Weaker Section (EWS), Middle Income Group (MIG), and High-Income Group (HIG). There is a significant demand for DDA flats, so many DDA property owners look to sell them at a premium price. However, it is essential to understand the process and legal requirements of selling a DDA flat.

Know the eligibility criteria

The DDA specifies the eligibility criteria for owning/ buying a DDA flat. The buyer should be a citizen of India above 18 years of age. The DDA also mentions a criterion that the applicant should not own a residential property in Delhi with a carpet area exceeding 67 square metre. One also must fulfil the specified income criteria based on the specific housing scheme. To sell a DDA flat, one should be the registered owner of the DDA.

Earlier, there was a lock-in period of five years before selling a DDA flat, except for the EWS flats. This rule has been removed. However, there are other legal requirements that the seller must fulfil.

Clear outstanding dues

Before selling any property, a seller should ensure there are no pending dues. This includes utility bills like electricity bills, water bills, maintenance charges and property taxes. This will prevent potential disputes with the new buyer.

Arrange necessary documentation

To sell a DDA flat, the property owner should arrange the necessary documentation: 

• Obtain no objection certificate (NOC): When selling a DDA flat, the property owner should check and obtain a no objection certificate (NOC) from the relevant authority, such as the housing society or DDA to allow the transfer of ownership. The NOC serves as a legal document which proves there are no outstanding dues or legal issues related to the flat and that the authority has no objection to the property sale. To obtain the NOC, the owner should submit an application to the DDA.
• Title Deed: Thе Titlе dееd is a legal document establishing thе ownеrship of thе propеrty. The property owner should keep this document secure for future reference.
• Clеarancе Cеrtificatе: Before selling the DDA flat, the property ownеr is required to obtain a clеarancе cеrtificatе from thе DDA. The clearance cеrtificatе proves that all duеs of thе propеrty havе bееn clеarеd.
• Property tax receipts: The Propеrty tax rеcеipts are key documents which prove that the owner has paid all the taxes and there are no pending tax dues. The tax receipts should be kept securely to еnsurе thе lеgality of thе salе and prevent any potential disputes with the new buyer. s

Convert the property status

DDA is the land-owning agency under the central government. The DDA flats are leasehold properties, which refers to properties usually owned by a government authority, with a lease of 99 years. Previously, selling a DDA flat meant obtaining approval from all flat owners in the building. However, upon paying a fee, DDA introduced a new process to convert the leasehold property to a freehold property in October 2011.

After the property conversion, the owner becomes eligible to transfer the flat without seeking third-party approval. This also enables the owner to sell the flat at a higher price. This an advantage as freehold properties are more costlier. In September 2015, the authority launched an online process to convert the property type.

Steps to convert property online

• To generate a challan online for property conversion, visit the DDA website online.dda.org.in/idliservice and log in through OTP on the sent registered mobile number.
• New users can create a Login ID on the portal.
• Fill out the relevant form.
• Calculate the conversion charges.
• Applicants should check the list of documents specified on the portal.

• Go to the official portal and login credentials
• Complete the payment online. Enter the challan number generated in the first step.
• After submitting the application, an acknowledgement/receipt number will be sent via SMS and email, which can be used to track the status of the application.
• One can also check the status of the conversion application on the portal. If the application has not been duly filled out with relevant details, the applicant is allowed a period of 45 working days to complete the form.

DDA will take around 45 days to process the application and convert the property from leasehold to freehold. Once the process is completed, the owner receives a conveyance deed, which must be stamped and registered with the government. A stamp duty of 6% of the consideration amount on the deed is applicable for males, while the rate is 4% for females. The registration fee is 1% of the total value specified on the deed. Finally, the owner should submit this executed deed at the DDA office.

How to sell a DDA flat?

#1. Property valuation

Before selling a house, the property owner must conduct a property valuation to determine the right asking price based on the market trends. Property prices are influenced by the demand-supply dynamics, location, property’s age and amenities available, etc. You can work with an experienced broker or hire professional property valuation services. There are also online property valuation tools that one can use to set the right price for the DDA flat.

#2. Advertise

After setting the right price for the property, consider advertising the property to attract potential buyers. You can do it through offline modes like newspapers or word-of-mouth marketing with the help of brokers, friends and family. Another reliable and faster way to get the right buyer is by listing the property on popular property portals. Include a good description, including property location, price, size, etc. and attractive photos.

#3. Finalise the deal

Before selling a DDA flat, the owner should execute the sale deed – a legal document that establishes the ownership of the property. It contains key details such as the names of the buyers and sellers, sale amount, property details, payment mode, etc. After negotiations and completing the formalities, the property buyer should make the payment to the seller. After the payment, the new buyer can take possession of the property.

Can property owners renovate DDA flats before selling?

Many DDA flat owners desire to renovate their houses before selling them to earn a higher price but are not clear about the regulations set by the authority. Earlier, there were stringent guidelines on home renovations, but the DDA has now adopted a more inclusive approach and has taken steps to ensure that property owners have access to common facilities such as staircases and terraces. Residents must submit their renovation designs to the authority for approval and pay the requisite fee.

DDA flat owners can visit the DDA’s official website https://dda.gov.in to check these guidelines or click here.

Housing.com News Viewpoint

A freehold property attracts a higher price. Hence, it could be profitable to sell a DDA flat. The process of selling a DDA flat is similar to selling any other property in a private housing society. However, the DDA flat owner should be aware of the specific guidelines laid down by the authority.

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