Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.
Advertisement of transaction in newspapers inviting objections
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.
Hire deed writer or lawyer to draft sale purchase agreement
It is common practice in Pakistan to hire a lawyer to draft the sale purchase agreement.
Payment of stamp duty, capital value tax, Town tax and registration fee
The following payments must be made:
(i) Conveyance stamp duty 3% of property value.
(ii) The capital value tax (CVT) decreased from 4% to 2.5% of the property value (Sindh Finance Act, 2010 which came into force on July 1st, 2010 amending the Sindh Urban Immoveable Property Tax Act, 1958, section 4). After the 18th constitutional amendment (April, 2010), the CVT on property was transferred to the provincial governments. 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. 100 per square yard of land area.
(iii) 1% of property value for the registration fee.
(iv) 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.
Obtaining a Non-Objection Certificate
The Deputy District Officer Revenue and the District Officer Revenue, at Town and city level respectively, issue a “No Objection Certificate” in favour of the Seller permitting the sale of the property, provided that the entire amount due and payable in respect of the property has been satisfied.
Receipt of payment is taken to Stamp Office
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.
Execution and registration of the deed before the registration authority
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 post registration procedures, such as changing the name at the utility companies, property taxation and municipal services.