The number of scammed housing societies has increased in Pakistan and spreading fast in and around the metropolitan cities. As a result, many newbies are entering the real estate market without a credible record or source of experience. In this case, how to verify real estate papers in Pakistan?
If you are buying or investing your money into a real estate project, you must verify the real estate documents in Pakistan. You need a proper and authentic guideline on how to verify real estate papers in Pakistan, and we have got you covered in this blog.
We will provide you with a holistic guide on how to verify real estate papers in Pakistan and how you can avoid the housing scammers and bogus housing societies in the noise of real estate investment. So, let’s start our guide on verifying real estate ownership!
PROPERTY DOCUMENTS TO BE VERIFIED
Here is a list of real estate papers that the investors need to check before making a final deal and paying the property owner. Check this list and ensure you have verified all of these documents and have the original copies.
1. SALE DEED
A sale deed is an agreement between the seller and buyer of property wherein the transfer of a real estate property ends. Many people confuse sales deed with a sales agreement. However, both of these documents differ considerably from each other.
A sale deed is a legal agreement about transferring an immovable property from a seller to a buyer. On the other hand, a sale agreement explains the terms and conditions of a property transaction. All the transaction process takes place on those conditions agreed upon by both parties.
2. MOTHER DEED
When a property changes ownership multiple times and has a history of all sellers and buyers, all ownership details are recorded in the mother deed. While buying a property, ensure you know these details of a property. How many times a property has been transferred, and who owned this property in the past. You must check the mother’s deed while verifying property papers.
3. NO OBJECTION CERTIFICATE (NOC)
NOC of a property is a very crucial document for every investor or real estate buyer. As it guarantees the legality of property investment, the investors can invest their money worth millions and billions into the projects. Similarly, commercial and residential projects with their layout plans approved by the relevant development authorities can increase the safety of an investment.
For example, you can contact the team of Rawalpindi Development Authority, Capital Development Authority (CDA), Lahore Development Authority (LDA) and Karachi Development Authority (KDA), and other development authorities in each city.
4. BANK APPROVAL CERTIFICATE
Sometimes, people buy a home by getting a loan from a bank. The banks provide an approval document after checking and verifying the legal status of a house. If you are going to buy a home financed by a bank loan, you must check this approval document.
If you want to buy a home on a bank loan, you can check our holistic guide on how to get home finance in Pakistan.
5. ENCUMBRANCE CERTIFICATE
An encumbrance certificate records the history of all mortgages and home loans. You must verify if all the mortgages and home loans have been financed and entirely paid before making a final deal. This important legal document of the Encumbrance certificate provides information on all the due transactions and monetary issues. You can get this certificate of a property you are going to in from a sub-registrar’s office in Pakistan.
6. POWER OF ATTORNEY
Power of attorney is a vital property document that transfers the right to manage or sell a property to another person. The owner can transfer these rights to a third person to address the property issues.
Before buying a property, you must acquire a power of attorney document from the Pakistan embassy and ministry of foreign affairs. Overseas Pakistanis give special rights to a person to manage their properties in Pakistan.
General power of attorney and special power of attorney are the two types in Pakistan. In general power of attorney, the owner transfers all the property affairs to a third person. On the hand, a person has certain privileges to manage a property in the special power of attorney.
7. PROPERTY TAX RECEIPTS
The clearance of all property tax dues is an essential step in the property transaction process as it relieves you from paying the taxes pending with the Federal Board of Revenue. You may ask the property owner or seller to provide all the property taxation documents. Otherwise, you can reach the Federal Board of Revenues (FBR).
8. PROJECT COMPLETION CERTIFICATE
A project completion certificate is also one of the crucial property documents, and property developers issue this legal document. This certificate states the property has been constructed on the principles and standards defined by the relevant development authorities and municipal corporations.
Lastly, ensure you have checked all of the above documents up to your satisfaction. Once you miss any of these documents, you would be vulnerable to falling into the trap of scammers and can lose your money.
Moreover, you can check property records online on the official website of the Punjab Land Record Authority (PLRA). Enter the CNIC number and select the city. The property record will appear on the screen. The online property verification process has made the process very convenient and hassle-free.
So, you can verify property online now. Property solutions services can be achieved from the real estate agents and sub-registrar. So, you don’t need to worry about how to verify real estate papers in Pakistan.