What Is The Difference Between Registration and Property Transfer in Pakistan?
Real estate investments are generally viewed as the most profitable business in Pakistan.
Property is one of the most important legal issues in Pakistan courts, where property cases are locked up due to a lack of property records and ambiguous legal procedures.
In Pakistan, most people do not understand the distinction between registration and property transfer. As a result, Pakistanis have been wasting a lot of money and time going through legal procedures for generations.
Many terms and industry-related vocabulary, such as the difference between registration and property transfer, must be understood in order to be successful in the real estate industry.
Registration Vs Property Transfer
On the other hand, the primary barrier to managing property issues is a lack of real estate registration and property transfer awareness. We will define property registration and property transfer in this article.
Following that, we will discuss the distinction between property registration and property transfer in Pakistan.
Once you understand these real estate concepts, you will be able to enter the real estate market quickly. If, on the other hand, you want to register or transfer property in Pakistan, you’ll need some property documents to help you navigate the legal procedures smoothly and easily. You can reach a settlement on time.
So, let’s get started!
What is Property Transfer in Pakistan?
“Transfer of Property” refers to “the act by which a living person conveys property, in the present or in the future, to one or more other living persons, or to himself, [or to himself] and one or more other living persons: and “to transfer property” refers to “the act by which a living person conveys property, in the present or in the future, to one or more other living persons, or to himself, [or
The 1882 Transfer of Property Act
In Pakistan, you can transfer property in a variety of methods. The first approach is to transfer land as a ‘gift’ where the real estate property owner transfers property to someone in their life. The property of a person, on the other hand, is transferred to the offspring of a property owner according to Islamic principles.
Islam has established laws and regulations for transferring property upon the death of the individual who owns the property and leaves the property and other assets behind. All of these assets and properties will be distributed in accordance with the Holy Quran.
Similarly, whenever someone sells their property, they must notify the Registrar.
- Original document proving ownership of land
- Copies of CNIC of the seller, buyer, and other witnesses
- Passport (for Non-Pakistanis)
- No-Objection Certificate from the State’s Building Control Authority
- No-Objection Certificate for Real Estate Transaction from Foreign Office (for foreigners)
- 3,000–5,000 Pakistani rupee bank draft (depending on the case)
What is Property Registration?
When a person transfers an immovable property or purchases one from another in real estate investment, the property must be registered with the Property registrar. However, if someone receives property as a gift or inheritance, they do not need to register it with the Registrar.
Furthermore, in order to register your property with a registrar, you must pay certain taxes, duties, and fees. The following are the taxes.
- Stamp Duty (3% of the value of the property)
- Town Tax (1% of property value)
- Sale deed registration (Fee of PKR 1000)
The entire process usually takes 8 working days to complete. The property owner, on the other hand, must provide the following documentation.
Property Registration Document
The paperwork required for property registration is listed below. At the time of property registration, buyers and sellers must present certain documents to the Registrar.
- CNIC of the seller, buyer, and witnesses
- Original title deed of the seller
- Stamped Conveyance/Sale deed
- Power of Attorney (if any)
- No-Objection Certificate from the Town Nazim
Thus, a property transfer is merely the transfer of an immovable property from one person to another. The two most popular methods of property transfer are gifts and inheritance.
On the other hand, someone sells a property to another person, it must be registered with the property registrars to avoid legal complications. So, understanding the difference between registration and property transfer in Pakistan is important when transferring a property.
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