Understanding the Balloting Process 5 Reasons Why it Matters & How It Works 

In Pakistan’s real estate sector, particularly within housing societies, the balloting process is a vital mechanism for plot allocation. Generally, it is a draw or lottery system used to allocate property, especially a plot of land, to individuals who have submitted applications.

In short, it is a method for distributing scarce resources fairly when demand exceeds supply. Thus, in this guide, we will delve into the balloting process, 5 reasons why it matters, and how it works efficiently!

What is the Difference Between a Plot and a Plot File in Real Estate?

Before delving into a balloting process, you must know the key difference between a plot and a plot file.

Plot

In terms of real estate, a plot is a physically designated piece of land (residential or commercial) that is owned and ready to be built upon. 

Key Features of a Plot

1. It is tangible & secure, so you can own the land outright & have the right to build on it immediately.
2. A plot has a fixed location & you know exactly where the plot is located on the ground & a map.
3. You have full ownership rights & are independent of a developer for a return on your investment.
4. The price of a plot is generally more stable than a file, and there are fewer chances of fraud.
5. Plots are usually more expensive than a plot file.

Plot File

A ‘plot file’ is just a promise or reservation for a future plot within a development. It often has lower prices, and the exact location should be determined later.

Key Features of a Plot File 

1. A plot file is generally a promise of a future plot within a development, not a guaranteed piece of land.
2. The exact location of the plot within the development is not determined until later, often through a balloting process.
3. Plot files are typically less expensive than an actual plot.
4. Consequently, the value of a plot file can be more volatile, especially if the development projects face delays or setbacks.
5. You are reliant on the developer to deliver the plot as promised.

What is Plot Balloting?

Plot balloting is a transparent and random process used to allocate plots to applicants within a housing society or real estate development. For balloting, each applicant applies along with the requisite fee. 

Then, a random lucky draw (lottery) determines the allotment. This method ensures fairness by assigning plots randomly.

For your information: ‘Balloting is typically a type of Plot File. The other type of plot file is an Affidavit (Non-Balloted) Plot.’

Types of Balloting of Plots 

Balloting is generally categorized into two subtypes.

• Booking Ballot
• Plot Ballot

1. Booking Ballot

It is a category of balloting in which the plots are allocated to the buyer who has booked properties on an installment basis.

• Primarily, a draw is conducted among applicants who have committed to purchasing plots through installment plans.
• So, the successful applicants receive an acknowledged slip, and the plot is marked on the society’s map.

2. Plot Ballot

In this category of balloting, a specific plot number is assigned to buyers who have cleared all dues or a significant portion of the payment.

• Typically, a draw is held to allocate the actual plot numbers to file holders.
• Post-balloting, buyers receive a map with their designated plot number, and the plot is ready for development.

How Does a Balloting Process Work?

A balloting process is generally categorized into 4 basic steps, from application to plot allotments and possession.

Step 1: Application Submission

1. Buyers must complete the designated application form. You can obtain the form online from the real
2. You must submit a processing fee to participate in the balloting process, and it may vary depending on the real estate company.

Step 2: Document Verification

The housing society and leading real estate agency in Pakistan verify the submitted documents and ensure the applicant has cleared all the dues.

So, only eligible to proceed to the next step.

Step 3: Balloting Process

Then, the real estate agency will conduct a computerized, transparent draw to randomly assign plot numbers to the applicants.

• After that, the results are typically announced during a public ceremony and also published on the housing society`s official website.

Step 4: Post-Balloting Procedure

This is the final step in the balloting process. 

• The successful applicants are required to make confirmation payments, having a percentage of the total plot cost.
• The real estate company will give an allotment letter (confirming the plot allocation) to the recipient of the confirmation payment.
• Finally, the possession of the plot is handed over to the buyer after completing the development work.

Key Considerations for Applicants

There are some key considerations for applicants before filling out ballot forms.

1. Verify the Developer`s Credentials
2. Understand all the Terms and Conditions
3. Check Plot File Status
4. Be Prepared for all Outcomes
5. Check your Eligibility 
6. Understand Payment Plans & Charges
7. Evaluate Resale Value
8. Verify all the documentation

5 Reasons Why Balloting Matters

There are some reasons to verify the significance of the balloting process in the real estate market.

1. Balloting promotes equality and allows buyers from diverse backgrounds to participate.
2. It also builds trust in the developer`s reputation & project legitimacy.
3. The balloting process assists the developers in managing resources, infrastructure, and timelines efficiently.
4. It also contributes to the creation of well-planned communities with proper infrastructure & amenities.
5. Plot balloting encourages a sense of community, as all the members feel equally valued and treated.

What is the Difference Between a Balloted Plot & Non-Balloted Plot?

A ballot plot is different from a non-balloted plot in the following ways.

Features	Balloted Plot	Non-Balloted Plot
Location	The plot is assigned through balloting.	Does not involve a random draw or balloting.
Ownership	An allotment letter was issued.	A plot file is issued.
Possession	After the completion of development.	After balloting and development.
Investment Risk	Lower & more secure.	Higher, more risk of fraud.
Market Value	Higher, stable resale value.	Lower, fluctuating resale value

Where to Invest, a Plot or a Plot File?

Investing in a developed plot generally offers lower risks and stability compared to investing in a plot file (pre-developed). There are some pros & cons of investing in a developed plot.

Plot (Developed)

No.	Pros	Cons
1.	It is suitable for long-term investors or those who want to build immediately.	It has a higher initial investment cost.
2.	The property value is generally more suitable over time.	It has less flexibility in terms of payment plans.

Plot File (Pre-Development)

No.	Pros	Cons
1.	Lower entry cost and a more affordable option.	Higher risk, depending on the project`s development progress.
2.	It is the potential for higher returns if the project is successful & the property appreciates.	It requires thorough research to avoid fraud.

Final Thoughts

The balloting process always ensures fairness in the real estate sector. It provides an equal opportunity for all the individuals who take part in balloting and promotes trust and accountability within the systems that rely on public participation.

Besides, understanding the importance of balloting helps to maintain the integrity & legitimacy of these systems.