Registering Property in Pakistan

This topic examines the steps, time, and cost involved in registering property in Pakistan.

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Property Value: PKR 3,225,843
City: Karachi

	Procedure	Time to complete:	Cost to complete:
1	Advertisement of transaction in newspapers inviting objections	8 days	PKR 3,000
2	Hire deed writer or lawyer to draft sale purchase agreement	1 day	PKR 5,000
3	Payment of stamp duty, capital value tax, Town tax and registration fee	1 day	2% of the property price (Capital value tax) +3% of property price (stamp duty) + 1% of property price (registration fee)+ 1% Town Tax
4	Obtaining a Non-Objection Certificate	1 day	included in procedure 3
5	Receipt of payment is taken to Stamp Office	1 day	no cost
6	Execution and registration of the deed before the registration authority	38 days	no cost

Procedure 1.: Advertisement of transaction in newspapers inviting objections
Time to complete:: 8 days
Cost to complete:: PKR 3,000
Name of Agency:: Local Newspaper
Comment:: A Public notice in two different newspapers, in English and in Urdu news paper, inviting objections/claims should be placed. After publication, there is a seven-day waiting time for arrival of objections, if any. Advertisement is published in local newspapers (dailies) having a large circulation.
Simultaneously, the buyer will verify the authenticity of the documents presented by the seller as well his authority to act on behalf of the company to sell this property. At the same time, there is a checking for any encumbrances.

Procedure 2.: Hire deed writer or lawyer to draft sale purchase agreement
Time to complete:: 1 day
Cost to complete:: PKR 5,000
Name of Agency:
Comment:: It is common practice in Pakistan to hire a lawyer or deed writer to draft the sale purchase agreement.

Procedure 3.: Payment of stamp duty, capital value tax, Town tax and registration fee
Time to complete:: 1 day
Cost to complete:: 2% of the property price (Capital value tax) +3% of property price (stamp duty) + 1% of property price (registration fee)+ 1% Town Tax
Name of Agency:: Government Treasury or National Bank of Pakistan
Comment:: Conveyance stamp duty 3% of property value, The capital value tax (CVT)2% of the property value (Finance Act, 2006). CVT is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property. However, where the value of such property is not recorded, the CVT is payable at Rs. 50 per square yard of land area.
And 1% of property value for the registration fee.
1% of the property value for the Town Tax
Fees are paid at the Government Treasury or National Bank of Pakistan, an autonomous bank jointly owned by Government of Pakistan and public, who issue receipt of money which is taken to the Stamp office of the Government.
The receipt of payment is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.

Procedure 4.: Obtaining a Non-Objection Certificate
Time to complete:: 1 day
Cost to complete:: included in procedure 3
Name of Agency:: Town Nazim
Comment:: The Town Nazim issues a “No Objection Certificate” in favour of the Seller permitting the sale of the property by the seller provided all the amount due and payable in respect of the property has been satisfied

Procedure 5.: Receipt of payment is taken to Stamp Office
Time to complete:: 1 day
Cost to complete:: no cost
Name of Agency:: Stamp Office of the Government
Comment:: The receipt of payment obtained in Procedure 4 is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.

Procedure 6.: Execution and registration of the deed before the registration authority
Time to complete:: 38 days
Cost to complete:: no cost
Name of Agency:: Sub-Registrar of Conveyance/Assurances
Comment:: The conveyance deed must be executed before the registering authority. Execution of the deed is done before the Sub-Registrar of Conveyance/Assurances of the area, official responsible under the Registration Act. Registration of the deed automatically follows the execution of sale deed. A receipt is issued immediately, but the deed is delivered a few weeks later. The name of the buyer is recorded in the new deed, showing the change in ownership.
The documentation shall include:
Conveyance/Sale Deed (stamped after payment in Procedure 4)
ID of parties
Original title deed of seller
If the parties have authorized someone else through a power of attorney, the power of attorney in original with copies.

The buyer will conduct port registration procedures, such as changing the name at the utility companies, property taxation and municipal services.

Post purchase procedures such as