Procedure To Transfer House Ownership In Pakistan

Procedure To Transfer House Ownership In Pakistan

Being a new entrant in the real estate market, the process of transferring house ownership may seem confusing and complicated. However, in reality, it is not as hard as it seems. With thorough guidance from real estate professionals, you can gather heaps of information regarding property transfer.

When performed appropriately, the transfer of house ownership in Pakistan is a pretty straightforward procedure. Effective transfer of ownership guarantees a successful transfer by ensuring that all required paperwork is given to the registrar.

Agency21 International is here to save you from hours of research! Stay tuned while we simplify the process for you.

Transfer Of House Ownership

Before getting into the procedure of property transfer, let’s look into the basics first. 

To transfer ownership of your house, you must know the rules presented by the Constituency of Pakistan. People planning to transfer or sell a property have to go through many regulations in order to achieve successful transaction.

In simple terms, transferring property ownership typically involves the house owner transferring the land’s title from one person to another. Furthermore, the property can be transferred in a multitude of ways including a gift deed, mortgage, inheritance, lease, and so on.

Eligibility For Transfer Of House Ownership 

When it comes to the transfer of house ownership in Pakistan, the government has formulated set criteria. In Pakistan, everyone who can sign a contract has the right to transfer house ownership. 

According to the Contract Act of 1872, is a legally binding agreement between two parties, which implies it is a legally binding instrument for any land sale or purchase in the country.

So, Who CAN NOT Transfer House Ownership?

• A minor i.e. under the age of 18 years
• A person who is mentally unstable and has no knowledge of the results of any binding agreements
• Someone who is legally forbidden from signing contracts 
• Anyone who is not in their senses

The Procedure For Transferring (And Selling) Property:

The house-ownership transfer process is simple and convenient, with moderate legalities involved. Following are the main steps involved in the process.

1. Token And Bayana

This is the first stage involved in the process of transferring house ownership. The procedure begins when a prospective buyer pays a small fee as a token. There is a decided amount between the buyer and the seller which depicts that both parties are in agreement. 

The contract between the buyer and the seller is a way to secure the agreement. As a result, the seller will stop dealing with other buyers. 

“Bayana” fulfills the same purpose as a token, thus making it an official written agreement between the respective parties.

2. What Does The Official Property Sale Agreement Entail?

• Thorough details of the property
• The terms of sale of the property
• The agreed-upon amount concluded by the two parties
• The date on which the buyer is to pay the remaining sum after both Bayana and token

3. List Of Documents Required To Transfer House Ownership

To transfer house ownership or sell any immovable property, the following legal documents are required to proceed with the process:

• Recent photos of the buyer and the seller
• Photocopies of National Identity Cards (NIC) of the two parties.
• The original title deed of the seller that shows the seller’s ownership.
• Original Sale Deed which depicts the agreement contract between the buyer and the seller. This agreement contract is most vital to transfer house ownership.

It’s vital to keep in mind that depending on where your property is located, you’ll need to provide some additional documentation. These are as follows:

• “Fard-e-Malkiat,” also known as the Record of Rights and Fard. The seller can obtain the Fard-e-Malkiat form from the property registration office. This ensures that the property is registered in the seller’s name.
• A Non-Demand Certificate (NDC) is another essential document that shows you don’t owe any property dues. This can be obtained from the relevant development authority office in your area.
• If the property is located at a private housing society, a letter from the respective society is required to complete the property transfer. This document can be used in place of the Fard-e-Malkiat. It can be noted that private housing schemes e.g. DHA, Bahria Town, etc make the process of transferring house ownership a lot more convenient.

4. Stamp Paper And Tax Payments

A stamp paper is required for the preparation of the sales document (contract for sale). The stamp paper required will vary in value based on the value of the property. To complete this stage, the buyer must also pay any applicable taxes.

The taxes that are required to be paid by the buyer are as follows:

• 3% Stamp Duty
• 1% District Council Fee
• 2% Capital Value Tax
• Registration fee, PKR 500 (the value can differ)

5. Preparing The Sales Deed

If you have enough knowledge of what you’re doing, you can proceed with writing the Sales Deed by yourself; If not, you can hire a lawyer. 

It is common practice to hire a lawyer or any Deed Writer to prepare the Sale Deed effectively. You will be able to prevent any unforeseen issues that may develop if written without sufficient expertise.

Pakistan’s Property sale agreement format is easily accessible on the internet as well. If you are planning on writing the Sales Deed yourself, you can do your research and find the forms conveniently. 

6. How Do We Finally Execute The Sales Deed?

The transferring of the house ownership process has now come to an end! To everyone’s relief, this is the final step in the process. 

After the long process, you might think: “What do I do now?” 

Now, you can go to the registrar’s office with the sales deed (drafted on the stamp paper) and the relevant documentation. The sub-registrar will then call both parties at the same time to hear their agreement to transfer the respective property.

To complete the transfer process, you’ll need to sign the documents and put your fingerprint on them to authenticate the final transaction. The official will officially register the sale deed once the authentication if completed

The transfer of house ownership procedure has finally been completed. House ownership transfer can be a hectic procedure, however, we hope that the procedure was simple and easy to understand and execute!

Looking For The Right Property In Your Area?

If you are searching for a property in your desired locality, with the amenities you require, you can visit Agency21 International’s website for multiple and most informative property listings.

Furthermore, if you are looking to sell or purchase a house, Agency21 International provides multiple services including professional Real Estate guidance, a thorough comparative market analysis of a property, document preparation for your property, etc.

As a buyer or a seller, you must conduct complete research before entering the Real Estate market as buying or selling a house is an important decision. A long-term investment means considering all benefits and downsides that come with it.

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