Tenure & Ownership
What is Freehold Property?
The strongest thing you can own in India. No landlord, no term, no ground rent, no permission needed to sell.
The short answer
Freehold means you own the property AND the land it stands on — in perpetuity.
No lease. No term. No landlord. No ground rent. No permission needed to sell.
It is the strongest form of ownership available in India, and it is what most buyers assume they are getting — which is precisely why they should check.
What freehold means
- You own the land, not just the building.
- In perpetuity. There is no term, and nothing to renew.
- No ground rent. Nobody to pay.
- No lessor's permission needed to sell, mortgage, alter or bequeath it.
- It passes to your heirs, indefinitely.
Subject only to the ordinary law — planning permission, building bye-laws, the state's power of acquisition. But no private superior stands above you.
What 'freehold' means for a FLAT — and this is where it gets subtle
A flat on the eleventh floor cannot own the ground beneath the building. That would be absurd, and it would be unworkable.
What you actually own is:
• Your apartment, absolutely; and
• An UNDIVIDED SHARE (UDS) of the land, held jointly with every other flat owner.
'Freehold flat' therefore means: the LAND ITSELF is freehold — the building does not sit on someone else's leasehold plot — and your undivided share of it is held in perpetuity.
Which brings you, once again, to conveyance. Until the land is conveyed to the society, the builder still holds title to it — and 'freehold' describes the land's tenure, not who currently owns it.
Two different questions. Ask both.
How to check whether it's actually freehold
- Read the sale deed. It should say. If it doesn't, that is itself a question.
- Check the land record — the 7/12, RTC, patta, khasra. What is the tenure?
- In Maharashtra, check the PROPERTY CARD. It states the tenure — freehold, or leasehold from the collector, or occupancy class.
- Ask directly: “Is this land freehold or leasehold?” And if leasehold — “how many years remain?”
- Ask whether conveyance has been done. Freehold land still owned by the builder is not yet yours.
- Get your lawyer to confirm it. This is a title question, and it is exactly what you are paying them for.
Delhi: a great deal of DDA land is leasehold, though much has been converted to freehold.
Mumbai: substantial land is leasehold — from the Collector, from MHADA, from other bodies.
Chandigarh, Noida, Greater Noida, and many housing board estates: leasehold is common.
Buyers routinely assume freehold and do not ask. Then, years later, they discover a ground rent, a transfer fee, a lessor's permission requirement — or a lease with 22 years left and a bank that will not lend to their buyer.
Ask. It is one question.
Freehold vs leasehold
| Freehold | Leasehold | |
|---|---|---|
| What you own | The property AND the land. Outright. In perpetuity. | The RIGHT to use it, for a fixed term. The land belongs to the lessor. |
| Duration | Forever | A term — commonly 99 years. Sometimes 30. Sometimes 999. |
| The lessor | — | Usually the government, a development authority, or the collector — DDA, MHADA, a Housing Board |
| Ground rent | None | Payable, though often nominal |
| Transfer | Free. Sell to anyone. | May need the lessor's permission, and a transfer fee |
| Alterations | Subject only to building bye-laws | May need the lessor's consent |
| Bank loan | Straightforward | Depends on the remaining term. See below — this is the one that hurts. |
| Value | Higher | Falls as the lease shortens |
| At the end of the term | — | The property reverts to the lessor, unless renewed. Renewal is usually possible — at a price. |
The single most important number in a leasehold purchase is the YEARS REMAINING. A 99-year lease with 82 years left is, in practice, close to freehold. One with 19 years left is a wasting asset that most banks will not lend against — and almost nobody asks.
Frequently asked questions
What is freehold property?
Ownership of the property together with the land it stands on, in perpetuity — no term, no ground rent, no landlord, and no permission needed to sell, mortgage or alter it. It is the strongest form of ownership available in India.
Can a flat be freehold?
Yes, in the sense that matters: the LAND is freehold rather than leasehold. You own your apartment absolutely, plus an undivided share of the land, held jointly with the other owners — you cannot own the ground beneath an eleventh-floor flat outright, and nobody can.
How do I check if a property is freehold?
Read the sale deed, check the land record (7/12, RTC, patta, khasra) for the tenure, and in Maharashtra check the Property Card, which states it explicitly. Ask directly: is this land freehold or leasehold — and if leasehold, how many years remain? Then have your lawyer confirm it.
Is most property in India freehold?
Not all of it, and buyers routinely assume it is. Large parts of Delhi are DDA leasehold, substantial Mumbai land is leasehold from the Collector or MHADA, and Chandigarh, Noida and many housing board estates are commonly leasehold. It is one question — ask it.
Does freehold mean the society owns the land?
No — those are two different questions, and both matter. 'Freehold' describes the LAND'S TENURE. Whether the society actually owns it depends on whether CONVEYANCE has been done. Freehold land still held by the builder is freehold, and it is still not yours.