Then opposite of open file is “closed file”, then what is closed file.
Any Brother can shed some light??
Open file is one who have no owner and can be sold without any transfer. Its a kind on bond , u have to take care ot it like u r holding money say if I took ur open file then I can also sell it .
regards
Agree with baber khan.Its for the convenience of seller and buyer and lot of investor prefer it as they can buy or sell it at any time.
Let me give you an example. When a fast-moving-investor (Mr-FMI) purchases a plot which is the name of the original owner (Mr-OO), Mr-FMI does not transfer the plot in his own name.
Mr FMI pays the price to Mr-OO and takes the original file from him. The transfer application is signed by Mr-OO but the name of the purchaser (transferee) remains blank.
A small hand written note is made in the file of the Society office for that plot number which shows that currently the file is 'open' (because in the transfer letter the name of the purchaser is blank). The file/plot is not transferred to the name of Mr-FMI and it is in the possession of Mr-FMI who has a transfer letter with no name in the place of purchaser.
After a few months, MR-FMI feels that the price of the plot has increased quite a lot it may come down so he decides that he should now get out and invest in a new society where prices will now rise faster. He sells the file to another fast-moving-investor (Mr-FMI-2). Mr-FMI-2 also does the same, he does not transfer it into his own name just gets the letter with Mr OO's signature but no name in the Purchaser section (open transfer letter). The small noting in society record is updated. And they record the fact that the file is now with Mr-FMI-2.
This process of selling continues, and the file changes hands several times. The legal owner on record remains Mr-OO but he is not the real owner. This is how it becomes an open file. The important thing is to have the NIC copy of Mr-OO.
Then comes a person like me (Mr-Me) who does not like to keep an open file when he has paid the price to Mr-FMI-2, so he wants the plot in his own name. So Mr-Me writes his name in the blank transfer application and NIC details and pays the fee to the Society and they transfer the plot in the name of Mr-Me. Now the file is closed.
When Mr-Me decides to sell the plot/file, he sells to a person who may be another fast moving investor (Mr-FMI-3). So he gets a new transfer letter application form signed by Mr-Me but Mr-FMI-3 does not fill in his name on the transfer letter. The file again becomes open file and the process continues.
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PK1, very well explained answer and it definitely deserves to be the “Best Answer”.
Its just like allama iqbal open university,UNIVERSITY WITHOUT WALLS