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If you are a real estate market entrant, you may be wondering how to sell property in Pakistan. The task, as has long been the complaint of many a property affiliate in the country, can seem like a difficult one.

Now the good news is that you no longer need to worry about this problem. This blog, which will likely have you coming back for quick check-ups every now & then, details everything you need to know to transfer property in Pakistan.

So how exactly do you go about transferring and selling property in Pakistan?

Well, you start off by knowing what exactly a transfer of property is.

As is ‘what the process entails’.

What does the transfer of property even mean?

Legally speaking, someone owns a property when he (or she) has a ‘title’ to it. In Pakistan, a transfer of property basically comprises the transfer of the title of a property from one person to another.

This transfer can take place in a number of ways, and doesn’t merely imply a sale. It can also include the concerns of mortgage, gift, lease, and exchange.

Similarly, there can be different kinds of properties. But, real estate usually only deals with immovable properties. Though ‘plot files,’ as the system exists could be considered a kind of movable property.

 What is an immovable property?

Immovable properties, as the name suggests, property that cannot be moved without alteration. It is usually something that affixed to earth. Moving it can drastically alter it. This can include plots, houses, apartments, shops and similar buildings or structures.

Houses, plots, apartments, all count as immovable properties.

Who can transfer property in Pakistan?

Anyone who is competent to contract

Only someone who can sign a contract can, legally, transfer property. Under Contract Act 1872, a contract is a binding agreement between two parties.

The following cannot not be a party to a contract:

  1. In Pakistan, currently, this means someone under the age of 18.
  2. Someone who is unable to understand the consequences of his action. This may be due to a permanent or temporary mental disability or other similar reasons.
  3. Sometimes, you can be legally barred from signing any contract.

Therefore, it follows that only someone above the age of 18, is mentally sound, and not legally barred from signing a contract can transfer property in Pakistan.

Majority and lucidity are requisites of a contract.

The procedure for transfer of property in Pakistan

1. Token and Bayana

This is usually the first step in the transfer of property. The potential buyer pays a ‘token’ amount to seller. The buyers pays to prove his willingness. Detailed discussion, negotiation, and practical steps to buying property follow this.

Resultantly, the seller temporarily stops negotiating the sale of property with other potential buyers. If the sale falls through, the token gets returned, with appropriate deductions.

The token is usually followed by ‘bayana’. It serves the same purpose as the token. However, unlike the token, it makes the things slightly more official. It is usually coupled with a written agreement.

Below you can find the details of property sale agreement format in Pakistan. This goes with bayana:

  1. The complete details of the property,
  2. The terms of the sale property,
  3. The total amount of money in consideration of which the seller is transferring,
  4. The date on which the buyer is going to pay the whole amount of money (after bayana and token.)

2. Required property documents in Pakistan

You will need to get your documentation in order. Here’s a list of property documents you will need:

  1. Photos of the two parties (buyer and seller)
  2. Copies of National Identity Cards (NIC) of the parties.
  3. Original title deed of the seller. The title deed is the document that proves the ownership of the seller.
  4. Sale deed. This is the agreement (contract) signed between the buyer and the seller. This, obviously, is the most important property document in Pakistan.

The other property documents in Pakistan may differ depending on the location of property. It may include the following documents:

  1. Fard-e-Malkiat (Record of Rights): It is also simply known as fard. Seller can get it from property registration office. It is a guarantee from the registration office that the property belongs to the seller.
  2. Non-demand Certificate (NDC): This document shows that you don’t owe any dues for the property. Depending on the location of your property, you can get it from your local development authority. Or the residential projects such as DHA or Bahria Town.
  3. In case housing societies, you usually also need a letter from society for transfer. This is basically a replacement of fard for private housing schemes. You need it before you can execute the sale deed.

Societies generally make the matters a lot easier for the sellers and buyers. They have a detailed system in place at the society offices to facilitate the transfers.

Recently, the news that internal transfer in housing schemes will stop made headlines. Board of Revenue (BOR) transfer will replace internal transfers, according to the reports.

But no concrete steps have followed it. According to the real estate experts interviewed, the matter is under consideration.

Sources explained that the primary concern of the government is taxes. They also wish to stop operation of illegal housing schemes. Their concern is not transfers through BOR.

In any case, the housing schemes have to keep a record of transfers. So any implementation will have to involve the society administration in any case.

3. Acquisition of stamp paper and payment of taxes

Finally, you need stamp paper on which you will write the sales deed – the contract for sale. The value of stamp paper will differ depending on the value of the property.  At the time you will have to pay the requisite the taxes as well. These are generally paid by the buyers.

Generally, the taxes you have to pay for this will include the following. These are the percentage of the value of property:

  1. 3% Stamp Duty
  2. 2% Capital Value Tax
  3. 1% District Council Fee
  4. Fixed registration, usually PKR 500.

4. Writing the sale deed

It is generally recommended to hire a deed writer or a lawyer to write the sale deed. They have experience and they know the things that are absolutely included in any deed. This can generally help avoid any future complications between the parties.

However, it is not compulsory. You can as easily pen down the deed yourself. Property sale agreement formats for Pakistan are conveniently available online. You can find them on the Punjab Land Record Authority’s Registration of Deeds portal. And you can find them below as well:

5. Execution of Sale deed

Finally, you will take the sale deed written on the stamp paper, and the requisite documents noted above, to the sub-registrar’s office. A magistrate/sub-registrar hears both the parties. Then confirms that the sales deed and the transfer is complete and registers the deed.

The property stands transferred

The transfer is completed when the sale deed is registered with sub-registrar.

Some helpful Tips

The guide above takes you through the process of transferring property through sales. However, a newbie looking to buy or sell property in Pakistan may have other questions:

  1. How do you go about finding the right kind of property dealer?
  2. What is the general amount of property dealer commission in Pakistan?
  3. How to go about searching the right kind of property?
  4. How to set the right price for selling property in Pakistan?
  5. What are the reasonable property prices in Pakistan?
  6. What precautions to take when buying property?

Property Prices in Pakistan

If you are looking for the property rates in your area, you can check them with local dealers and our website. You will be able to compare property prices in Pakistan, your city, neighbourhood and know what to expect.

Property dealer commission in Pakistan

There are no particular law governing the work of real estate dealers and agents in Pakistan. The property dealer commission in Pakistan is really a matter of custom. It can vary.

The usual practice for real estate agents is to demand 1% of the value of property each from buyer and seller as commission. If both the buyer and seller has the same agent, each agent will keep the commission from his own client.

However, they are not bound to ask just 1%, sometimes, some agents may demand as high 2% of the value of property. Or, they may be happy with much lower, fixed amount regardless of the price of property.

Finding the right property

If you are a buyer, and you are looking to buy property, research may make all the difference. It will help you find the right kind of property, at the right places, and with the amenities you need. You can start off for that from our website as well.

Check out the property listings for different areas, projects or housing schemes. Check and compare the prices. Read the descriptions, check photos and videos available on the listing. You can also call or email the agents/owners who listed their properties to discuss your options.

Once you have narrowed down a few good options, a visit the site of property is usually recommended. This will help you determine how good the location is, and all the amenities nearby. You can consider meeting the agents, society representatives, owner and/or neighbours there.

Finally, you can go about confirming that there are no issues with the property.


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