Property is one of the leading legal issues in Pakistan courts, where property cases linger in limbo due to the insufficient property record and ambiguous legal procedures. People don’t know the difference between registration and property transfer in Pakistan. As a result, the people in Pakistan waste a lot of their money and time getting through the legal procedures for generations.
WHAT IS THE DIFFERENCE BETWEEN REGISTRATION AND PROPERTY TRANSFER IN PAKISTAN?
On the other hand, the lack of real estate registration and property transfer awareness is the primary hurdle in managing property issues. In this article, we will define property registration and property transfer. After this, we will highlight the difference between registration and property transfer in Pakistan. Once you know about these real estate concepts, you can quickly get into the real estate business. On the other hand, if you want to register or transfer property in Pakistan, you need some property documents that will help you go through the legal procedures seamlessly and effortlessly. You can make a deal on time.
So, let’s jump straight in!
WHAT IS A PROPERTY TRANSFER IN PAKISTAN?
“Transfer of Property means and act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, [or to himself] and one or more other living persons: and ‘to transfer property is to perform such act.”
The Transfer of Property Act, 1882
You can transfer property in different ways in Pakistan. The first method is to transfer land as a ‘gift’ where the real estate property owner transfers property to someone in their life. On the other hand, the property of a person is transferred to the off-springs of a property owner according to the teachings of Islam.
Islam has set rules to transfer property after the death of a particular person who owns the property and leaves the property and other assets behind. All these assets and properties will be distributed as prescribed in Holy Quran.
Similarly, if someone sells their property, they have to register before the Registrar.
- Original copy of Land Ownership Papers
- Photocopies of National Identity Cards of the seller, buyer, and other witnesses
- Passport (for Non-Pakistanis)
- No-Objection Certificate from Building Control Authority of the respective state
- No-Object Certificate from M/o regarding property transaction (for foreigners)
- No-Objection Certificate from Foreign Office regarding property transaction (for foreigners)
- Bank draft of PKR 3,000 – PKR 5,000 (depending on the case)
WHAT IS PROPERTY REGISTRATION?
When someone transfers an immovable property or buys a property from someone in real estate investment, the property must be registered with the Property registrar. On the other hand, if someone receives property as a gift or in inheritance, they don’t need to register their property with the Registrar.
However, when you want to register your property with a registrar, the property has to pay some taxes, charges, and fees. These taxes are as follows.
- Stamp Duty (3% of the property’s value)
- Town Fee (1% of the property’s value)
- Registration of a sale deed (Fee of PKR 1000)
Typically, the whole process takes 8 working days to complete. On the other hand, the property owner must submit the following documents.
PROPERTY REGISTRATION DOCUMENTS
The following is the list of documents for property registration. The buyers and sellers have to submit these papers before the Registrar at the time of property registration.
- National Identity Cards of the seller, buyer, and witnesses
- The original title deed of the seller
- Stamped Conveyance/Sale deed
- Power of Attorney (if any)
- No-Objection Certificate from the Town Nazim
So, the property transfer is simply transferring an immovable property from one person to another person. Gifts and inheritance are the two common types of property transfer. On the other hand, if someone sells a property to another person, it needs to be registered with the property registrars as it helps avoid legal glitches certainly. So, knowing the difference between registration and property transfer in Pakistan is vital when someone transfers a property.