Buying and Selling Property in Pakistan Full Guide
Buying or selling property can be difficult and complicated if you are doing it for the first time. Although the government is involved and the country is stable, there are many other things to think about when buying or selling a home in Pakistan.
But the property market is different in every province, although the general principles remain the same. On the other hand, real estate has long been seen as one of the safest and most reliable ways to invest in Pakistan. Also, it is one of the fastest growing and most innovative industries in the country, contributing a large portion of the GDP.
If you’re looking for a guide to buying and selling property in Pakistan, you’ve come to the right place. This blog post will go into great detail on how to sell and buy property in Pakistan. Before we start the main course, let’s share some professional advice with you.
Lahore Smart City is the best and most profitable place in Pakistan to invest in real estate.
Before we begin the process of buying and selling property in Pakistan, we will discuss the laws and procedures involved in buying and selling property in Pakistan. There are four major rules involved in buying and selling real estate:
- Transfer of Property Act 1882
- Stamp Act 1899
- Land Revenue Act 1967
- Registration Act 1908
PROCESS OF BUYING PROPERTY:
The process of buying a property can be a daunting task if you don’t know the basics. The purchasing process begins with simply determining the legality of the location. If it is a statutory property authorized by the concerned development authority, like LDA, RDA, FDA, MDA, etc., then go for it. For example, Capital Smart City Islamabad is an approved real estate project of RDA. Check the No Objection Certificate (NOC) before proceeding with the purchase process. Another thing that must be determined is the reputation and experience of the developer.
If the project is from a reputable developer, you won’t need to negotiate before buying. Check the market to confirm property rates in your area. You can also get help by hiring a real estate agent. An experienced and trusted real estate agent, like one from Masters Real Estate & Builders, can help you get the best deal. The
procurement process can be summarized in the following steps.
- Check for legality.
- NOC approved
- Reputation of developers
- Shop around the market.
- Hire a real estate agent.
- Transfer charges
Last but not least, consideration in the purchase process is to settle transfer fees and other payments. Before you can proceed with the purchase process, you must pay the transfer fee and any other fees.
The following charges need to be resolved in the settlement:
- Transfer Fees
- Stamp duty
- Payments due to the buyer
PROCESS OF SELLING PROPERTY:
To begin with the selling process, you need to make sure the property is ready for sale. Make sure that the land you are going to sell is in good condition and free from defects that a buyer might question. Additionally, whether it is a home, a residential space, or a commercial space, make sure that it does not require any maintenance. Get all your maintenance and repairs done before proceeding with the selling process.
Once your property is ready to be “on sale”, do a manual search yourself. Ask for referrals, and shop the market to inquire about real estate trends and rate ranges in the market. However, you can hire a real estate agent to sell your property. Hiring a real estate agent will reduce the hassle of doing it yourself. Make sure you hire legitimate real estate agents, such as the real estate agents from The Masters Real Estate & Builders.
If you know how the market works, you will be able to set a fair price for your property. Leave a margin of negotiation with the buyer to close the deal. If you and the buyer reach an agreement on price, you will receive “token money” from the buyer. Token money is the fractional amount needed to seal a deal.
However, “token money” and “statement” are two different terms because a statement involves written promises, while token money does not. The following steps can also be used to describe the process of buying a property.
- Prepare your property for sale.
- Search the local market.
- Hire a real estate agent.
- Quote a realistic price.
- To negotiate
- Close the deal.
Documents required while buying or selling real estate in Pakistan:
Documentation is an important part of your buying and selling process. However, the absence of documents can cause delays or damage to your contract. So, if you want to sell a property in Pakistan, make sure you follow all the legal steps and rules. Following are the documents required in the sale and purchase process:
- Copies of National Identity Card (NIC) are required for both (seller and buyer).
- Recent photographs of both parties (seller and buyer).
- Seller’s original title deed
- Proprietorship also known simply as ‘Fard’
- Non-Demand Certificate (NDC)
Once you complete all the formalities, you can transfer the property to the buyer. Usually, depending on public holidays, it may take a few days or weeks.