| Procedure 1. | Obtain a non-encumbrance certificate |
| Time to complete: | 3 days |
| Cost to complete: | PKR 50 |
| Comment: | The non-encumbrance certificate shall also be obtained by the seller and this should be tendered to the buyer in verification of the fact that the property is free from all encumbrances. This would be 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 (proof of entry in revenue record). |
| Procedure 2. | Fill a Challan Form 32-A with the Treasury Office and obtain Stamped Paper |
| Time to complete: | 3 days |
| Cost to complete: | 2% of property value (Stamp Duty) |
| Comment: | All the instruments are charged with a stamp duty, mentioned in the table appended with the Stamp Act, 1899. Stamped papers (more frequently called stamp papers) of different denominations are available either from Treasury Office or from Stamp Vendors. In Lahore stamp papers are obtained from the provincial government's Treasury in case stamp papers worth more than Rs. 1000 are required. |
| 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. | Deed Writer prepares the deed on the Stamp Paper |
| Time to complete: | 2 days |
| Cost to complete: | PKR 2000 |
| Comment: | Stamp papers, once purchased, shall be taken either to a lawyer or a Deed Writer who shall scribe 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. |
| Procedure 5. | 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 another 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 6. | Execute and register of the deed of sale at the registration office |
| Time to complete: | 5 - 10 days |
| Cost to complete: | 1% of property value (registration fee) |
| Comment: |
The Sale Deed is then presented for registration to the Office of Sub-Registrar along with the corresponding documents. 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 registration officer 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 registration officer who then takes signatures and/or thumb impressions of the executants and witnesses in his index register. 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 concerned Sub-Registrar once again, who shall fix his signatures and date to the endorsements made to the document under section 52 of 58 of the Registration Act, 1908. After the conditions mentioned in the Act are complied with, the registering officer shall endorse a certificate under section 60, signed, sealed and dated by such officer, which shall be the proof of the registration of the deed.
The personal appearance of the parties before the Sub-Registrar, may be exempted in certain cases. In such a case, the sub-registrar may either himself examine such persons or appoint a commission to act on his behalf.
The documentation shall include: 1. Title deed of the vendor. 2. Non-encumbrance certificate (obtained in Procedure 1) 3. Certified copy of the resolution by the two companies, especially by the Company who is selling the land. 4. Computerized National Identity Cards of the representatives |
| Procedure 7. | Mutate title at the Revenue Officer |
| Time to complete: | 3 days |
| Cost to complete: | PKR 300 |
| 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. The buyer obtains the copy of this sanctioning of the mutation which further ratifies and affirms his title qua the property in question. |
| Procedure 8. | 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 concerned Excise & Taxation Department and gets himself entered into their records as the owner. |