Land ownership is common in Pakistan, with nearly 70% of the population owning some property. Property transfers occur daily and are classified into three major scenarios under the Transfer of Property Act: Buying or Selling, Inheritance, and Gift. Each scenario has its procedure. In this guide, we will walk you through the essential aspects of transferring property ownership in Pakistan.
Legally, the transfer of property in Pakistan involves passing the title of a landholding from one person to another. This transfer can occur through various means, not limited to sales but also mortgages, gift deeds, leases, and exchanges. Properties in question are primarily immovable, such as plots, houses, apartments, shops, and other permanent structures.
To legally transfer property ownership in Pakistan, an individual must be at least 18 years old, mentally sound, and not legally barred from signing a contract. These requirements are based on the Contract Act of 1872, which defines a contract as a binding agreement between two parties. Minors (those under 18), individuals unable to understand the consequences of their actions due to mental disabilities, and those legally prohibited from signing contracts cannot be parties to such agreements.
Following are the few steps explaining the procedure for transferringand selling property in Pakistan:
The first step in the property transfer process is usually the payment of a “token” amount by the potential buyer to the seller. This token indicates the buyer’s intention to purchase the property and temporarily prevents the seller from negotiating with other potential buyers. If the sale falls through, the token is typically returned with appropriate deductions. A “bayana” may follow the token, providing a more formal agreement with written terms.
The property sale agreement form in Pakistan typically includes the following:
To transfer or sell property in Pakistan, you must gather essential documents, which may vary depending on the property’s location. These documents include:
When drafting the sales deed, you’ll require a stamp paper whose value depends on the property’s worth. As a buyer, you must also pay property-related taxes, including:
It is advisable to hire a lawyer or deed writer to draft the sale deed, as they are experienced in including all necessary clauses to avoid future complications. However, it is not mandatory; you can create the sale agreement yourself. Property sale agreement formats are available online, typically on the Punjab Land Record Authority’s Registration of Deeds portal.
Once the sale deed is prepared, along with the required documents and stamp paper, it should be taken to the sub-registrar’s office. A magistrate or sub-registrar will oversee the transaction, listening to both parties. Upon satisfaction with the proceedings, the official approves the transaction and registers the deed, making the recipient the legal owner of the property.
When a property owner in Pakistan passes away, their property is automatically distributed among their legal heirs. Pakistan’s inheritance laws are influenced by Islamic Law and the Transfer of Property Act, making the concept of a ‘will’ uncommon. Consequently, all property shares automatically become the right of the owner’s legal heirs, preventing others from making claims.
An inheritance certificate, also known as a ‘wirasatnama,’ is issued by the civil court in Pakistan. This registered document is required to transfer property ownership from the deceased owner to their legal heirs. It is also necessary for builders and housing societies to verify property ownership before entering into legal contracts.
Acquiring the certificate is straightforward, but professional legal assistance is recommended. The lawyer must submit a written objection to the civil court detailing the heirs and the property left behind. Four court hearings are typically required for the certificate’s issuance. The following documents need to be submitted to the civil court for the legal proceedings:
In the real estate context, a ‘gift‘ refers to transferring property ownership from one person to another without a monetary transaction. Property can be gifted during a person’s lifetime, but any gift made under coercion, deceit, or fraud is considered invalid.
For those interested in sharing property ownership without monetary exchange, a gift deed is the ideal option. It is a legally binding document that records the transfer of ownership from the giver to the receiver, signifying consensual transfer. A gift deed can also cover tangible property, including jewelry, vehicles, and money.
To register a gift deed, the transaction details must be documented on stamp paper, along with several necessary documents. For approval, the application needs to be submitted to a sub-registrar. The following documents are required for the transaction:
Pakistan’s real estate laws have clearly defined rules and regulations for transferring property ownership, closely monitored to prevent malpractices in the market. For those wondering how to check property ownership in Pakistan online, this guide provides valuable information for a smooth property transfer process.
In Pakistan, property ownership transfers are subject to a 3% stamp duty. In Pakistan, the CVT (Capital Value Tax) on property ownership transfers is 2%. Property ownership transfers in Pakistan are charged 1% of the District Council Fee, according to real estate regulations.
The Transfer of Property Act 1882 is the fundamental law governing property transfer in Pakistan. Along with the Land Revenue Act of 1967 and the Registration Act of 1908, this law governs the transfer of immovable property (land) in Pakistan.
In short, gifting a property to a family member or anyone else is perfectly legal.
In Islamic law, a son has no right to his father's property while the father is still alive. Assume the father is in good health. During his lifetime, the father has the right to distribute his wealth among his heirs.
In legal terms, a gift deed is a document that must be attested by two witnesses. Perhaps the declaration of Oral Gift isn't. However, the plaintiff called both attesting witnesses as witnesses.
Suite #06, 2nd Floor, Block D, Spring North Commercial Bahria Town Phase 7, Islamabad
First Floor, Sea View Hotel, Javed complex, Airport road, Gawadar.
Suite# 1 , 24069 Ryan Rd, Warren, 48091, Michigan USA.
Laffinge straat 8400,oostende-Belgium.
1023 Parsons Road SW Edmonton AB T6X0X2. +1 (780) 709-4405 (only Whatsapp)
2024 © Copyright The Millennium Builders (PVT) Ltd.
