| Procedure 1. | Obtain a non-encumbrance certificate |
| Time to complete: | 3 days |
| Cost to complete: | PKR 50 |
| Comment: | The non-encumbrance certificate is obtained by the seller and tendered to the buyer in verification of the fact that the property is free from all encumbrances. This is issued by the Sub-Registrar / Tehsildar concerned. If the title document is obtained from the Revenue Record Department then the non-encumbrance comment is noted on the fard jamabandi (proof of entry in revenue record); the cost is PKR 200 - 300. Records in Faisalbad are not computerized and must be checked manually. |
| Procedure 2. | Fill a Challan Form 32-A with the Treasury Office to obtain Stamped Paper |
| Time to complete: | 1 day |
| Cost to complete: | 2% of property value (Stamp Duty) |
| Comment: | All the instruments mentioned in the table appended with the Stamp Act, 1899 are charged with a stamp duty. Stamped papers (more frequently called stamp papers) of different denominations are available from Treasury Office. Stamp papers are obtained from the provincial government's Treasury. In order to get the stamp papers, a Challan form 32-A is filled and deposited with Treasury Office situated at Canal Office, University Road, Faisalabad by the Purchaser or his deed writer. The treasury endorses this challan and redelivers it to the applicant for deposit of money in the local Branch of State Bank of Pakistan. |
| Procedure 3. | Pay Capital Value Tax at the local branch of the State Bank of Pakistan |
| Time to complete: | 1 day |
| Cost to complete: | no cost |
| Comment: | The CVT is paid at the local branch of the State Bank of Pakistan or National Bank of Pakistan and a receipt is issued. Under the Finance Act, 2006 (effective July 1st, 2006) 2 % capital value tax has been levied on the recorded value of the commercial immovable property of any size - to be paid by the purchaser when - when registering a sale transaction in relation to such commercial property. Therefore, the assessed value is always 2 % as described. The payment of the same is made at the time of transaction in the form of CVT and such payment is claimed in annual tax returns. |
| Procedure 4. | Obtain the stamp paper |
| Time to complete: | 3 days (5 days after deposit of Challan) |
| Cost to complete: | no cost |
| Comment: | Once the deposit is made and receipt is issued, the Challan is sent back to the Treasury with a voucher following. After verification of payment, the required amount of stamp papers are delivered to the purchaser |
| Procedure 5. | Deed Writer prepares the deed on the Stamp Paper |
| Time to complete: | 1-2 days |
| Cost to complete: | PKR 1000 |
| Comment: | Stamp papers, once purchased, shall be taken either to a lawyer or a Deed Writer who shall draft an instrument of sale together with all the necessary recitals and operative terms and conditions in the deed. This deed shall inter alia contain all the details regarding the parties, the property transacted, its value, rights, easements available etc. mentioned at length. Although larger firms and companies consult lawyers for scribing such deeds who charge sizeable consultation charges, ordinarily and as the practice goes, in Faisalabad more people consult deed writers who charge very paltry and reasonable sums. In Faisalabad, surprisingly, there exists no mechanism for certification of these deed writers. All such instruments, apart from execution, are required to be attested by two marginal witnesses in terms of Article 17 of the Qanoon-e-Shahadat Order, 1984. |
| Procedure 6. | Pay Transfer of Immovable Property Tax (TIP) |
| Time to complete: | 1 day |
| Cost to complete: | 1% of property value (transfer fee) |
| Comment: | Since the property is situated within the municipal limits, the concerned Town Municipal Administration (TMA) would charge 1% of the sale consideration as Transfer of Immovable Property Tax (T.I.P. Tax) which is collected by a contractor of the TMA sitting in Registrations Circle concerned. |
| Procedure 7. | Execute and register of the deed of sale at the registration office |
| Time to complete: | 3 - 4 days |
| Cost to complete: | 1% of property value (registration fee) |
| Comment: |
The Sale Deed is then presented for registration to the Office of Deputy District Officer (Registration) along with the corresponding documents i.e. in this case DDO Registration Urban 1. The deed is executed in the presence of two witnesses to identify the executant(s) and to attest the execution. After satisfying himself of the identity of the executant(s), marginal witnesses, value of the property which shall not be below minimum prescribed rates, affixation of stamp duty, the DDO Registration shall order registration of the deed in Book 1 on payment of Registration Fees equal to 1% of the value of the transaction. Deeds are normally executed in front of the DDO Registration who then takes signatures and/or thumb impressions of the executants and witnesses in his index register. Muqabla fee is also paid at the same time. After payment of Registration Fee, a delivery slip shall be issued with a future date for collection of this deed after its entries in relevant registers.
Once the registration fee is received and the delivery slip is issued, the process of entering the contents of the document in Book 1 is initiated. All the deeds are given a unique identification number. A deed once entered in the relevant Volume of Book 1 in accordance with Section 51 of the Registration Act, 1908, is then taken to the DDO Registration once again, who after new verifications in accordance with Section 59 and 60 of the Registration Act, 1908 endorse his report thereupon regarding date and time of execution and after signing the same affixes his official stamp over it.
The Document is then delivered to the Vendee on the date of delivery mentioned on the delivery slip after receiving a Muqabla fee at PKR 4 per page. A copy is retained in current volume of Book 1 and copy is also forwarded to Land Revenue Authorities for affecting changes in their record and affecting an Intiqaal (Mutation) in their relevant mutation Register to keep their Register of Record of Rights updated.
Personal appearance of the parties before the DDO Registration may be waived in certain cases whereunder he himself examines such persons or appoint a commission to act on his behalf. The documentation shall include: -Title deed of the vendor. -Non-encumbrance certificate (obtained in Procedure 1) -Certified copy of the resolution by the two companies, especially by the Company who is selling the land. -Computerized National Identity Cards of the representatives |
| Procedure 8. | Mutate title at the Revenue Officer |
| Time to complete: | 5 days |
| Cost to complete: | PKR 200 |
| Comment: | The buyer takes the sale deed to the concerned Revenue Officer for affecting entries of mutation in his favor in the Revenue Record. The Revenue Officer, after making the due scrutiny, enters the mutation as to this transaction and as to the ownership of the buyer. After 5 days, the buyer obtains the copy of this sanctioning of the mutation which further ratifies and affirms his title qua the property in question. |
| Procedure 9. | Enter sale deed at the Excise & Taxation Department |
| Time to complete: | 20 days |
| Cost to complete: | no cost |
| Comment: | The vendee takes the sale deed, along with a written application to the local office of Excise & Taxation Department and gets his name entered in the record as the owner. Note that the Revenue officer performs a function on behalf of the provincial government under the Land Revenue Act, whereas, the Excise and Taxation Department works under the Central Board of Revenue (CBR) a Federal Agency for executing Federal Tax Laws. (Land Revenue Act is not the responsibility of CBR.) |