If you’re just getting started in the real estate market, you might be wondering how to sell property in Pakistan. It can seem like a difficult task, as has long been the complaint of many property affiliates in the nation.
Let’s begin by defining a transfer of property as it is currently practice in society. The good news is that this issue is no longer a concern for you this blog explains everything you need to know about the property transfer process in Pakistan and it will probably have you coming back for quick checkups periodically.
However, take a moment to read through our real estate glossary to understand what terms like Fard and Bayana means before we go into the details about buying and selling property in Pakistan.
Let’s us begin by defining a transfer of property as it should be understood and define.
What Does the Transfer of Property Mean?
A person legally owns property when they have a “title” to it. A transfer of property in Pakistan essentially entails the passing of a landholding’s title from one person to another. This transfer is not limited to sales and can occur in a variety of ways. It might also cover issues with mortgages, gift deeds, leases, and exchanges. More witness could also be engaged in the process. The majority of real estate deals are with immovable properties. Despite the fact that “plot files,” as they function in the system
Immovable Property:
What Is It?
In legal jargon, immovable property is a category of property that cannot be transferred without changing its nature. It is secured to the ground. Plots, homes, apartments, businesses, and other built objects might all fall under this category. Immovable properties include all buildings, including houses and apartments.
Token And Bayana Process For Transferring And Selling Property:
In Pakistan, this is typically the initial stage in the transfer of property procedure. A “token” payment is made by a prospective buyer to a seller as a sign of interest. The process of buying a house then proceeds with in-depth discussion, negotiation, and a number of practical procedures. As a result, the seller temporarily suspends discussions with other prospective bidders about the sale of the same property. If the sale is unsuccessful, the token is returned after making the necessary deductions. A Bayana normally comes after the token. This fulfils the same function as the token. Contrary to the latter, it gives the situation a little more formal status because it typically goes along with a written agreement.
The specifics detailed below:
The information on the Pakistani form for a property sale agreement is provided below. It is joined to the Bayana and contains:
- The full specifications of the property
- The property’s sale conditions
- The overall sum of money (in consideration of which the seller agrees to transfer)
- The deadline for the buyer to pay the remaining amount (after bayana and token)
Required Documents:
You Must First Get All Of Your Documentation In Order Before You Can Transfer Or Sell Property In Pakistan.The Following Is A List Of The Property Paperwork Required In Pakistan For The Sale And Transfer Process:
- Pictures From Recently Of The Two Parties Involved (Buyer And Seller)
- A Copy Of Their National Identification Cards (NIC)
- The Seller’s Actual Title Deed.
- The Document Demonstrating The Seller’s Ownership Is The Title Deed
A “Sale deed.” This is the agreement (contract) that the buyer and seller signed, and it is often regarded as the most significant real estate document in Pakistan. Depending on where the relevant property is located, additional documents may also be needed for the transfer process:
The Fard-e-Malkiat, sometimes referred to as the “fard,” is a record of rights.
Depending on where the relevant property is located, additional documents may also be needed for the transfer process:
- The fard-e-malkiat, sometimes referred to as the “fard,” is a record of rights. The property registration office is where the seller can get this form. It is an assurance that the seller is the rightful owner of the item (from the specified authority).
- A certificate of non-demand (ndc). This paperwork demonstrates that you are in full possession of the property. You can obtain it through the office of your local development authority, depending on where the property is located.
- In order to effect transfers for a property inside of a private housing society, you typically also need a letter from the society. This essentially serves as the equivalent of a fake document. You need it before you can execute the sale deed.
Payment Of Taxes And Purchase Of Stamp Paper:
The contract for sale is the last piece of stamp paper you’ll need to draught the sales deed. Depending on how much property is involved, different stamp papers will be needed. You (as the buyer) will also need to pay all owed taxes in order to complete this step.
Note the breakdown of taxes below:
- Stamp Duty of 3%
- 1% District Council Fee and 2% Capital Value Tax
- Fixed registration is typically 500 PKR.
A Sale Deed:
The sale deed of the property in Pakistan should normally be drafted by a deed writer or lawyer. They have experience and are aware of the components that should be present in every act. In general, this can assist in preventing any more issues between the parties. it is not required. You may just as well record the act yourself. Formats for property sale agreements are easily accessible online in Pakistan. The Punjab Land Record Authority’s Registration of Deeds portal is where you may discover them.
Performance Of Sale Deed:
The sales deed-inscribed stamp paper must also be brought to the sub-office registrars with the other required paperwork mentioned above. Here, the trade-two off’s parties are heard by a magistrate/sub-registrar. The authority in question accepts the transaction and registers the deed after being satisfied with the proceedings. The recipient is now officially in possession of the property. When the sale deed is registered with the sub-registrar, the transfer is complete.
For more information contact Aura Properties, we provide free consultancy & available to assist you regarding any Real Estate query.
Research & written by:
Sanah Abbasi