How to Transfer Your Property in Pakistan?

Selling a home in Pakistan can be nerve-wracking for homeowners. From taking pictures & videos to uploading these on selling platforms to meeting interested buyers and counting the cash, everything is scary. One mistake and you could end up in a disaster. Indeed, you don’t want that. 

Keeping that in mind, we are sharing this small guide to address one part of selling your property – transferring your property.

Property transfer is a small process. But you may have to see some challenges down the road. This post will explain how you can transfer your property and save time and money.

What is Transfer of Property?

Property transfer is the change in ownership of any piece of land, house, building, or other property types.

Property transferring is usually done in three scenarios: 

  • Inheritance – the property you get from your parents.
  • Gift – the property you receive as a gift.
  • Buying or selling – the most common form of property transfer is when you’re selling your property to another person or the other way around.

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Transfer of Inherited Property

Pakistan follows a mix of Islamic law and the Transfer of Property Act, which includes all property shares automatically becoming the right to the owner’s legal heirs. It restricts any other person from claiming the property.

For legal heirs to claim the property, they need an inheritance certificate, also known as a ‘wirasatnama’. The country’s civil court issues this certificate, confirming that the property can then be transferred to the new owners – legal heirs. 

How to Acquire an Inheritance Certificate?

To acquire this certificate, you need a lawyer. The lawyer will submit your application to the civil court with beneficiary details and what is the property share. Additionally, you’ll need to submit the following documents:

  • The original owner’s death certificate
  • CNIC copies of the legal heirs and the late owner
  • Mutation certificate for the property
  • Legal heirs’ statement
  • An independent witness’s statement

Transfer of Gifted Property

Similar to any other gift, the first owner of the property can gift their property to any other person with a monetary transaction. However, the parties involved in this transaction need to be fair. The law doesn’t allow coercion, deceit, or fraud to avoid paying taxes or hiding unearned money.

To transfer property, you need a gift deed. It is legally binding that the right owner of a property is moving all the rights to the other party – the receiver. 

How to Acquire a Gift Deed for Transferring Ownership?

The property owner will prepare a set of documents to be presented to the sub-registrar for approval. The documents to be given include the following: 

  • CNIC copies – both parties
  • Property tax clearance certificate
  • Allotment letter
  • No-objection certificate
  • Statement record
  • Official seal of the deputy director

Transfer of Property Through Buying or Selling

The most common case of transferring property is through buying or selling. This transferring process involves cash flows – the buyer pays the seller in exchange for the property. 

The first step is usually paying the booking fee, also known as the ‘token money. It is a confirmation amount that the seller will only sell the property to the token-paying person.

How to Acquire a Sales Deed for Transferring Ownership?

A sales deed is necessary for the completion of the transfer process. Lawyers will write these documents for you, so you don’t have to. The following is required to prepare a sales deed:

  • CNIC copies of all the parties involved
  • The seller’s original deed proving ownership
  • The ‘Fard Malkiat’ of the property
  • No-Demand Certificate – all previous dues and taxes have been cleared on the property
  • Statement from the society office – if the property is part of a housing scheme

You’ll receive the transfer letter from the property owner confirming that the transfer process is completed. You can check this status online to verify if the transfer process is completed.

Read More: A Beginner’s Guide to Real Estate Investment in Pakistan

Property Transfer Process

The property transfer process is the same whether you have inherited it, received it as a gift, or bought it from a seller.

Who Can Transfer a Property?

Property transfer is legally binding and can be carried by a person allowed by the law. The signing person should be the rightful owner of the property, is mentally a sound person, be 18 or above and be permitted by the law to sign such a contract.

The following cannot be a party to a contract:

  • A Minor – anyone under the age of 18.
  • Mentally challenged person – unable to understand the consequences of their actions.
  • Someone legally barred from signing a contract.

The Property Transfer Process

  • Token payment: the seller pays the buyer a token money (aka banana) to confirm the token-paying party will acquire the property upon full payment. 
  • Document preparation: the buying party prepares the documents to transfer the property. The records will include full details of the property (sales deed, relevant certificates, CNIC copies, original property documents, etc.), the buying/selling terms, the amount involved in the transaction, and the date the buyer pays the total sum.
  • Other documents: the transfer process may include some other documents as well, such as the Fard-e-Malkiat (Record of Rights), also known as the ‘fard’, a Non-demand Certificate (NDC), and a letter from the society (if applicable).
  • Stamp paper: you also need a stamp paper (contract for sale) that mentions all the details and is a legal record of the sale proceeds between relevant parties (buyers and sellers).
  • Submitting documents: the completed documents are then submitted to relevant bodies – the sub-registrar’s office and the society’s local office (if the property is in a society).

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The Bottom Line

The property transfer process is a lot easier when the property comes under the jurisdiction of a private society or private builders, such as Zen Apartments. The process can further be eased if a private property management company like Zameen is involved. Such companies are experts in what they do and can perform the procedure with less pain.

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