Property Registration Process in Pakistan 2024 - Registry
and Scam Avoidance Guide
Written by: Neelam Shahzadi
Reviewed by: Majid Hussain
Understanding the property registration process in Pakistan is crucial for selling a property or purchasing a house in the country, as it helps protect property rights whilst ensuring smooth ownership transfer. It involves an intricate process between buyers and sellers and holds a significant value in claiming property rights. The Constitution of Pakistan protects property rights by ensuring authority to possess, acquire, and transfer property for every individual. In Pakistan, property rights are a fundamental aspect of the country’s legal framework governing property and land ownership.
The property registration process is overseen by Pakistan’s local registrar’s office in the district where the property is located. This office ensures the registration is carried out according to established legal standards. Several laws and regulations govern the registration to help maintain transparency and security in property dealings.
What Is a Registry?
It creates a property sale deed, claims ownership rights via proof, and registers a sale number under your name. The registry is also known as Bay-e-Nama.
This process is called the Inteqal or Mutation, and the documents are commonly known as conveyance deed.
Significance of Registration
Property registration is not a formality but an essential step in Pakistan’s real estate. For any property owner, property registration is a crucial step, as discussed below:
Legal Ownership Establishment
With property registration, you get the official documents establishing the property under your ownership. You get documented proof stating that you are the rightful owner of the property, which is vital for future transactions and legal security.
Sell and Transfer Rights
Registering your property gives you the legal right to sell, transfer, or lease it. Property transactions may be questioned without proper registration, leading to disputes or complications.
Fraud Protection
Registration protects your property from fraudulent activities, safeguarding it from any forged sale, illegal occupation, and individuals claiming to challenge your ownership.
Dispute Prevention
With property registration, you reduce the likelihood of disputes over ownership. When you establish your ownership, the chances for conflicts with other claimants are reduced significantly.
Transaction Evidence
The registration process officialises the transaction records of the property. The records will serve as valuable evidence for any legal issues arising in the future.
Documents Required for the Registration
For the registration process, certain documents are needed to fulfil the legal requirements in Pakistan. The Board of Revenue oversees the property registration process.
The Board of Revenue has issued a comprehensive list of documents needed for property registry in Pakistan. The following documents are essential for the successful registration:
Sale Deed
This fundamental document records the transfer of ownership from the seller to the buyer. The sale deed outlines the terms and conditions for the sale, agreed considerations, and property details.
CNIC Copy
CNIC copy of all parties involved is essential for the successful registration process. It is used to establish the legal identities of the parties and serves as an identification form.
Mutation Certificate
It confirms the ownership change in the land revenue records and is essential for updating the ownership details and accurate data records.
No Objection Certificate (NOC)
Before starting the registration process, a NOC from the relevant authority confirming no disputes or legal objections on the property is needed for its free transfer of ownership. Many housing societies in Pakistan, such as Saffron City Islamabad, have been granted NOC approval, proving how safe they are to invest in.
Encumbrance Certificate
It proves the property’s free title, indicating no liens, existing mortgage, or claims against the property, ultimately ensuring a clear title for the buyer.
Power of Attorney (If Applicable)
This is required if you appoint someone in your place to act on your behalf during the registration process. Power of Attorney documents grants the person authority to represent you in the transaction.
Affidavit
It is a sworn statement by the parties involved, confirming the provided information’s accuracy and asserting the rightful claim to the property.
Steps for Property Registration Process in Pakistan
Property registration in Pakistan involves a few steps. After getting the documents needed for registration, the following procedure is required:
Registration Application
For the registration process to begin, you need to apply for its application in the relevant registrar’s office.
Documents Verification
After applying, the next step is the verification of the documents. This critical step ensures the property transaction’s authenticity and legality. The papers are examined meticulously, ensuring compliance with the stipulated registration requirements.
Stamp Duty Payment and Registration Fees
After successfully verifying documents, the next step is settling the stamp duty and registration fees. These are calculated based on the property’s value or the amount stated in the sale deed.
Notably, these prices are subject to variable among different provinces of Pakistan. Payments are made at the designated banks or their authorised branches, and it is imperative to get the receipts for the future.
Sale Deed Execution
After the stamp duty and registration fees are settled, the focus shifts to the sale deed execution. This step requires the presence of the buyer, seller, and two witnesses at the registrar’s office. The legally binding document solidifies the ownership transfer to the buyer from the seller. You must ensure that all parties involved, whether witnesses, sign the deed and are duly attested by the registrar.
Registration and Documentation
When the registration process is completed, the registrar issues the buyer a registration certificate, providing the vital evidence to substantiate ownership essential for future property transactions.
It is imperative to safely retain the certificate for subsequent property transfers and legal proceedings. In the property registration process in Pakistan, charges are variable and subject to change with each registration step. Therefore, you must estimate all the costs before starting your registration process.
Scams in the Property Registry in Pakistan
Vigilance and caution are paramount regarding property transactions in Pakistan. The property market has great opportunities and is susceptible to fraudulent activities and scams. Knowing them beforehand saves you from significant financial losses and stress.
Following are some common scams regarding property registration in Pakistan:
Fake Documents
The fake document scam is among Pakistan’s prevalent frauds in property registration. It involves the sale of counterfeit or fraudulent documents by creating phoney title deeds, sale agreements, and other legal papers that appear authentic but are, in fact, forged or invalid.
Multiple Ownership Claims
This involves fraudulent selling of the exact property to multiple buyers, leading each party to believe they have legal papers and ownership or possession. This leads to legal battles, substantial financial losses, and disputes for all parties.
Unethical Agents or Brokers
Not all agents or brokers practice the right ethics in the real estate market. They may engage in unethical practices, charging excessive commissions, withholding critical information, or misrepresenting the property’s value. This harms the buyers and sellers financially, damaging the property industry’s reputation.
Boundary Disputes and Encroachment
Whilst giving clients a tour of the property, scammers may fake documents to show that the property is more significant than it is, trapping buyers in the entanglement of the boundary dispute relying on such false information.
impersonation and Identity Theft
Among the many scams, impersonation has been a top-listed one. These scammers impersonate the owner and conduct fraudulent property transactions involving fake Power of Attorney or identity theft, leading to the illegal transfer of the property ownership.
Avoiding Scams During Property Registration in Pakistan
With all the scams and fraudulent activities happening during the property registration process, it is essential to avoid those scams. To do so, the following tips may come in handy for you to protect your properties.
- Verify documents through the relevant authorities and ensure they are genuine and legally binding.
- Conduct a thorough title search to check for any claims or disputes over the property.
- Choose reputable real estate agents, lawyers, and brokers with a history of ethical practices.
- Inspect the property physically and its surroundings to match the information provided.
- Investigate the property history to avoid purchasing from multiple claimants.
- Seek legal advice to review documents and protect your interests.
Frequently Asked Questions
The property registration process in Pakistan requires parties’ agreement on terms verification of documents: title and tax status, stamp duty, property valuation, sale deed, signing the deed, and registration at the local office.
Property registration charges in Pakistan include an amount of 100 square yards based on the land area, with a registration fee equivalent to 1% of property value and an additional 1% in designated town tax fees. These charges are processed at the government treasury or the National Bank of Pakistan.
The registry validates the property sale but does not update the ownership. However, Inteqal updates the property sale in the Registrar’s office and transfers it to the property to the buyers.
The property registration process in Pakistan is a lengthy and hectic one. It includes several steps involving document verification and a schedule of charges until the deed is signed and the property is transferred to the buyer.
Legend Properties is a verified legal advisor who has helped several investors and clients secure their future homes at the best locations in Pakistan. They work together closely with you, managing all the transactions needed and working through ethical channels on your behalf. For more information, contact us!
Reviewed by:
Experience hones, but constantly embracing learning and versatility is what brings you to the top. I have had several years of experience behind me regarding sales and team management in a handful of prestigious companies in the country, and even so, I yearn for further professional and personal growth; hence, the various trainings and courses I attended. Read More