The procedure of buying property in Pakistan consists of various steps, varying from early research to the completion of legal formalities. Here’s an overview of the process:
Examining the Available Plot Options
This tactic can be fatal because cheap price tags typically have a lower possibility for future sales. It exposes buyers to the risk of real estate fraud. Experts in real estate counsel their clients to make purchases in a down market. In many ways, this is the best advice available to anyone hoping to make money in Pakistani real estate.
NOC (No Objection Certificate) and Approvals
Check if the property has received the necessary approvals from the relevant development agencies, such as the Lahore Development Authority (LDA), Karachi Development Authority (KDA), or Capital Development Authority (CDA), depending on the location.
Pay Token Money
In Pakistan, it is customary to provide token money to protect the property and show that both parties are committed to completing the transaction. Token money is typically between 1-2% of the total property value and is paid to the seller. Obtain a receipt for the token payment, and make sure it states that the property is reserved and the seller cannot interact with other buyers. Token is considered as one of the more aspects of buying property in Pakistan.
Property Transfer Process
The property transfer is the next stage after the token payment. The process of property transfer may vary slightly depending on whether it is an urban property or one located in a housing society. Visit the relevant land office (e.g., Tehsil Office or LDA office) to submit the transfer documents. The following documents are required:
- Sales Deed
- NIC Copies
- Photographs
- Allotment Letter
Apply for an NDC (No Demand Certificate)
The NDC proves that the property seller has not defaulted on any dues or taxes. The issuance of these certificates marks the initial stage in the property transfer procedure. To get this certificate, both the buyer and seller must visit the society’s office. The seller delivers his allotment letter to the transfer officer. To submit an official request for the issuance of an NDC, the seller completes a form. The form is to be submitted along the:
- An attested photocopy of the allotment letter
- Photocopies of buyer’s CNIC
- Photocopies of seller’s CNIC
Stamp Duty
At this time, the buyer must make payment for the plot. In addition, he will have to pay Stamp Duty at 5% of the total price of the property, as well as the membership fee. Some societies do not accept cash or checks. They prefer a pay order or a bank draft. Have these ready on the day of the property transfer. The plot transfer begins.
Transfer of Plot
The seller must follow the stated method for plot transfer. The process may differ from one society to another. The practices for documenting property agreements in Pakistan are comparable. In most circumstances, the required documentation for plot transfer is as follows:
- Transfer application form.
- Original allotment letter.
- NDC.
- Transfer affidavit and its two attested photocopies.
- Affidavit by the buyer.
- The Agreement to sell a plot.
- Membership application form along with two passport-sized photographs of the buyer.
- Attested photocopies of buyer’s and seller’s CNIC.
- Attested photocopies of two witnesses.
- Original document of the statement issued by the accounting office on payment of dues.
Pay The Agent’s Commission
Once the documents are submitted, both parties pay a commission to the Real estate Agent. Real estate Agents closely monitor the process to ensure that their efforts pay off. They will undoubtedly be present to advise you through the procedure. They will keep you informed of the necessary paperwork in advance. By all means, pay for their service by time.
Collect Allotment Letter
Housing societies frequently require seven working days to send allotment letters. The buyer can receive it sooner by making additional payments. Extra fees may vary from one developer to another. After the collection of the letter, the plot/house is under your name officially.
