How to Sell Property in Pakistan

All housing societies in Pakistan follow essentially the same procedure when selling properties, with a few slight differences determined by the various developers. The most frequent query is, “How can I transfer ownership of property in Pakistan?”

The land development authority of the city’s office is where the transfer procedure is conducted. The transfer happens at the office of private and licensed developers for their projects.

When selling real estate in Pakistan, there are a few considerations. Let’s take a closer look at each of them individually.

Preliminary Research And Finding an Agent

When you make the decision to list your home, you should research the property’s market value independently rather than relying on the agent. Setting the perfect price for your house will be made easier if you know its market value. The buyer and seller benefit from this approach.

When you decide to sell your property, obtain accurate market rates by conducting a countercheck using data from different sources. Although it takes a lot of work on your behalf, this phase is ultimately worthwhile.

Once you are certain of your property’s market value, you ought to locate a real estate agent. As much as you might want to sell your house without using an agent, the secret to a successful transaction is selecting the correct one. In Pakistan, it’s also among the quickest methods for selling real estate. The real estate agent will take care of all the laborious procedures, sparing you the headache of having to do them all by yourself.

Commision of Agent

Agents are paid on a commission basis, often one percent of sales. They will occasionally modify the commission percentage in accordance with the closing price, but this is not often. In any case, you should have a meeting with the agent to agree on the commission percentage and the payment schedule in advance.

The commission is often paid when you get the entire amount. Sometimes, when the buyer pays the initial deposit (bayana), it is mutually agreed upon that the agent would receive a particular proportion of the commission. To prevent difficulties, just make sure that all of these phrases are discussed thoroughly in advance.

Token Money

There are several phases involved in selling your home. The buyer you find should provide you with token money. This sum demonstrates the buyer’s intention to acquire the property. It also holds the property in sort of reserve for the payer. You can provide the potential buyer with a photocopy of the property’s original documentation for verification once the token money has been paid.

This is how it works: If the land is under the land development authority’s jurisdiction, you must file an application asking for a visit in order to have the buyer’s documentation confirmed. The buyer and you will then be invited to visit on a designated day by representatives of the land authority.

Initial Deposit

The buyer will see the documents proving the property’s authenticity on that day in your presence.

In Pakistan, it is crucial to keep in mind that you must pay a deposit when selling real estate. Following document verification, the buyer makes an upfront payment known as the bayana, which is a certain amount of money. The deposit is typically equal to 25% of the sale price of the property.

At this point, the stamp paper is also signed, according to terms agreed upon by all parties. The stamp paper specifies the time frame within which the buyer must complete the final payment as well as the consequences for failing to do so. You are required by law to return twice the bayana sum as a penalty if you decide to change your mind about giving up this property after obtaining bayana. The stamp paper makes reference to this as well.

No-Demand Certificate (NDC)

In our advice on selling real estate in Pakistan, obtaining a No-Demand Certificate (NDC) ahead of the final payment date is the next step.

Without this certificate, which can be obtained from the land development authority of the city or the office of the private housing society, depending on where your house or land is located, the transfer of property is just not feasible.

This certificate attests to your lack of outstanding debt. A specific fee, which varies for each developer, is involved in the NDC application process. Make sure to provide the buyer with a copy of your NDC as soon as you obtain it.

Selling real estate in Pakistan requires you to be fully informed about property taxes. The Capital Gains Tax (CGT), which is 1% for tax filers and 2% for non-filers of the property value, must be paid by sellers. When a property is sold within two years of the date of purchase, the CGT is imposed. The land development authority or the housing society office must receive this tax payment. However, before the property is transferred, the buyer must pay the following fees.

Taxes

Stamp duty
CVT
Transfer fee
TMA Tax

Transfer Letter

The attendance of both buyers and sellers is vital since the property transfer process is highly valued in Pakistan.

When the buyer delivers the money in the form of a pay order to the corresponding office on a specific day, the officer transfers the property into the buyer’s name and writes a letter outlining the transaction.

Following that, both parties see the local property registrar, where the seller certifies in front of the buyer and witnesses that he has sold the property on conditions that were mutually agreed upon. After that, the registrar gives the seller title to the property and requests that the land development authority make the required modifications.

After that, you will no longer own your property. Usually, the pay order is deposited into your account in a few days. While the payment is processing, make sure you maintain an account with your bank. Always remember that being mindful of your surroundings is crucial when handling property. Unfortunately, real estate scams are not uncommon, but we can assist you in avoiding them as well.

This concludes our overview of selling real estate in Pakistan. Please do not hesitate to contact us with any queries or remarks.

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