If you’re interested in playing in the property sector in Pakistan, then the best way to start is familiarizing yourself with the legal terminologies, industry lingo, and other property-related matters that often go unnoticed, such as knowing the differences between transfer and registration of property. Being aware of the details and terminologies might not qualify you to be called an expert; they will, however, help you avoid the many pitfalls that can threaten your hard-earned investment. In this blog, the differences between transfer and registration of property will be discussed:
What is the meaning of property transfer?
Property transfer includes: “immovable property given to someone as a gift” and “inheritance”. The latter mostly occurs in cases where the owner of a property dies. So, what does the law actually say about the transfer of property in Pakistan? Let’s discuss it in detail.
To begin with, “gift” is associated with any property or land transfer during the owner’s life. This type of property transfer is quite common in Pakistan. It involves no complex procedures but immediate acceptance of the “gift”. No prices are charged against this type of property transfer.
Inheritance of property, on the other hand, involves the ultimate transfer of property/land to the legal heirs. According to the Transfer of Property Act and Islamic Law, there’s no concept of “Will”, and the property is distributed equally among all legal heirs. Hence, this situation is one of the most common property disputes in Pakistan if it isn’t resolved during a person’s lifetime.
Documents Required for Transfer of Property in Pakistan
Here’s a list of documents required to carry out the process of property transfer in Pakistan smoothly:
- 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 the meaning of property registration in Pakistan?
The registration of a property is simply a legal procedure of stamping and paying charges against a sales deed. It is more or less similar to property transfer except for the monetary factor. A buyer “purchases” the property on its market or agreed value from a seller and registers the transactions in the registrar’s office.
Documents Required for Property Registration in Pakistan
Here’s a comprehensive list of important credentials for property registration in Pakistan:
- National Identity Cards of the seller, buyer, and witnesses
- The original title deed of seller
- Stamped Conveyance/Sale deed
- Power of Attorney (if any)
- No-Objection Certificate from the Town Nazim
All in all, the process of both transfer and registration of property is a legal matter and should at all times be dealt in this way. Cases of mutation are particular, but the sooner you take these up with a legal consultant, the better you will be in putting things in place. This process can take up to 2-3 months, owing to the presence and requirements of different laws.