Frequently Asked Questions related to Pakistan’s Real Estate Law

One of Pakistan’s most lucrative industries – the real estate market has seen a boom in popularity over the past decade, with millions in investment being poured into this business yearly. This exponential increase in popularity has led many to opt for investment and other business opportunities in the real estate industry.

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However, most people remain unaware of the country’s real estate laws and other essential information necessary for successfully navigating through the market. To help you know more about the industry, brings you the most frequently asked questions about Real estate laws in Pakistan.


FAQs About Real Estate Laws in Pakistan


FAQs for Pakistan's real estate market.


Whether you’re a real estate veteran or just a beginner, these FAQs will guide you through the ins and outs of Pakistan’s real estate market.


What is a Plot?

A plot is any specific piece of land where possession has been granted by the authority for construction or other usages.


What is a file?

A file refers to a specific area that has not been balloted, meaning possession has not been granted, and no construction can occur. There are many housing societies in Pakistan that offer plot files.


What is a ballot?

Balloting refers to allocating plot numbers in a specific real estate project. The market offers two types of balloting.

Booking Ballot – Projects are offered on an instalment plan, and applicants book their ballots.

Plot Ballot – A random draw in which each file is allotted a plot number.


What is a Mutation?

A mutation is a verification record for transferring ownership of a property from one individual to another.


What is Fard Malkiat?

The term refers to the record of rights, a document maintained to determine and verify rights for immovable properties.


What is a Tattima registry?

A Tattima registry is a supplementary sales deed to be a verifiable document in transferring and owning property.


What is a Conveyance Deed?

A conveyance deed is a document that verifies a shift in a property’s title from the seller to the buyer. This document is necessary to determine if the said property belongs to any builder, society, or authority.


What inheritance laws are applicable in Pakistan?

Pakistan’s inheritance laws are shaped mainly by religious rulings and affiliations. Muslims follow the guidelines provided by Islam, while people from other faiths are allowed to follow their religion’s rulings.


What legal documents are necessary for being able to own a property?

You only require one document to own a property which is a deed that verifies the transfer of property from one person to another. The act can be allotment letters, a sale certificate, or simply a sales deed.


What is stamp duty?

Stamp duty is a government tax on the transfer of property.


Which party is liable for paying the stamp duty?

In most cases, the responsibility for paying the stamp duty lies upon the buyer. However, sellers can also volunteer to pay this tax.


Which authority is responsible for maintaining land records in Pakistan?

Pakistan’s land records are maintained by the District Administration Revenue department. The department is also responsible for deciding on the property’s boundaries for division and ownership.


Can overseas Pakistanis buy property in Pakistan?

Yes, overseas Pakistani are eligible for buying property in Pakistan. In most cases, this can be done without visiting the country.


Can a foreigner buy property in Pakistan?

Yes, foreigners can own land in Pakistan. However, they must go through several legal procedures to become eligible for purchasing a property.


Can a co-sharer sell a property?

Yes, a co-sharer is legally allowed to sell the property, but only their share of the property.


What is defined as a gift in the real estate industry?

Any property that is willingly transferred from one person to another, without any money transaction, is known as a gift.


How is a gift differentiated from a will?

The contents of a will are only legally binding after the testator’s death, while a gift can be given to anyone during a person’s lifetime. Moreover, the owner can gift their entire land to their heir while they are alive, but the same is not possible through a will.

A will also restrict anyone that is not a legal heir from claiming the property. However, the testator has a right to allocate one-third of their property to someone who is not a legal heir.

Pakistan’s real estate industry is vast and complex, making it difficult for interested investors and buyers to navigate it. These FAQs can provide you with some of the essentials of the real estate laws of Pakistan, ensuring you remain safe from the pitfalls and malpractices within the market.

For more information, visit – Pakistan’s first online real estate market.

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