How to Get Your Property Registered in Pakistan?
It is more than a blessing to have your property or residence in Pakistan and it serves as an asset from generation to generation. However, there are certain things related to the technical aspects of properties for which we should know about to wisely proceed with buying and selling procedure of properties. A frequently asked question in terms of property-related matters is how to get the property registered in Pakistan? So here we have got a guide for you to respond to this question in the best possible way.
The process to Get Your Property Registered in Pakistan
Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of a title dispute.
Advertisement of transaction in newspapers inviting objections
A public notice in two different newspapers, in English and Urdu newspaper, inviting objections/claims should be placed. After publication, there is a seven-day waiting time for the arrival of objections, if any. Advertisement is published in local newspapers (dailies) having a large circulation.
Simultaneously, the buyer will verify the authenticity of the documents presented by the seller as well as his authority to act on behalf of the company to sell this property. At the same time, there is checking for any encumbrances.
Hire deed writer or lawyer to draft the sale-purchase agreement
It is common practice in Pakistan to hire a lawyer to draft the sale-purchase agreement.
Payment of stamp duty, capital value tax, Town tax and registration fee
The following payments must be made:
(i) Conveyance stamp duty 3% of property value.
(ii) The capital value tax (CVT) decreased from 4% to 2.5% of the property value (Sindh Finance Act, 2010 which came into force on July 1st, 2010 amending the Sindh Urban Immoveable Property Tax Act, 1958, section 4). After the 18th constitutional amendment (April 2010), the CVT on the property was transferred to the provincial governments. CVT is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property. However, where the value of such property is not recorded, the CVT is payable at Rs. 100 per square yard of land area.
(iii) 1% of the property value for the registration fee.
(iv) 1% of the property value for the Town Tax
Fees are paid at the Government Treasury or National Bank of Pakistan, an autonomous bank jointly owned by the Government of Pakistan and public, who issue a receipt of money which is taken to the Stamp Office of the Government.
The receipt of payment is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.
Obtaining a Non-Objection Certificate
The Deputy District Officer Revenue and the District Officer Revenue, at Town and city level respectively, issue a “No Objection Certificate” in favor of the Seller permitting the sale of the property, provided that the entire amount due and payable in respect of the property has been satisfied.
Receipt of payment is taken to Stamp Office
The receipt of payment obtained in Procedure 4 is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.
Execution and registration of the deed before the registration authority
The conveyance deed must be executed before the registering authority. Execution of the deed is done before the Sub-Registrar of Conveyance/Assurances of the area, official responsible under the Registration Act. Registration of the deed automatically follows the execution of the sale deed. A receipt is issued immediately, but the deed is delivered a few weeks later. The name of the buyer is recorded in the new deed, showing the change in ownership.
The documentation shall include:
- Conveyance/Sale Deed (stamped after payment in Procedure 4)
- ID of parties
- The original title deed of seller
- If the parties have authorized someone else through a power of attorney, the power of attorney in original with copies.
- The buyer will conduct post-registration procedures, such as changing the name at the utility companies, property taxation, and municipal services.
Overview of Property Buying & Selling Laws in Pakistan
1. Registration Act of 1908
Registration Act 1908 is a law that was originally made to check the registration of the real estate. Registration Act 1908 has all the necessary instructions for registration of properties and it has in total fifteen sections. Registration Act 1908 contains details about the establishment of registration and describes where the properties can be registered. The time of presentation of the documents and the place of presenting the documents is also mentioned in the Registration Act 1908. In short, the Registration Act 1908 is quite a comprehensive law that guides you on all matters of real estate registration in Pakistan, while leaving no ambiguity.
2. Stamp Act of 1899
The Stamp Act 1899 directly affects the revenue of the government as it mentions in detail about the different stamps used in buying and selling of Pakistan real estate. Stamp Act 1899’s directs the buyers and sellers to pay a certain amount to the government in place of the stamp papers used to make the legal agreements of buying and selling real estate in Pakistan. The stamp rates might change due to the impact of inflation and governmental policies, but the overall Stamp Act 1899 instructs buyers and sellers of Pakistan real estate to legally validate their buying and selling of properties through the use of Stamp.
3. Land Revenue Act 1967
Land Revenue Act 1967 lays out the complete structure and hierarchy of the land and revenue department in Pakistan. It discusses the different powers allotted to the different land and revenue department offices and their due jurisdictions. Land Revenue Act also instructs on the collection of land revenue. Some of the more critical issues like conducting of surveys, marking of boundaries, partitions, and arbitrations are also instructed about in Land Revenue Act 1967.
4. Transfer of Property Act 1882
Transfer of Property Act 1882 discusses in detail about how the transfer of Pakistan real estate should take place. Transfer of Property Act 1882 has a direct impact on the buying and selling of property. There are times when people tend to transfer a property to another person even when they are not legally entitled to do that, which can cause a major problem for the buyer who has paid his hard-earned money to buy the property. Transfer of Property Act 1882 discusses in detail about the persons entitled to transfer the property, operation of transfer, oral transfer, and what types of properties can be transferred.
So if you are planning to buy or sell your property and need any of the details regarding how to get your property registered, here we have tried our best to compile all of the relevant details for your guidance through this procedure.
