In Pakistan, the majority is Muslim if count on religious bases but there are a lot of cultures and religions but all are equally treated as Pakistani. So there is no specific restriction on anyone to own a property whether it is a Muslim or non-Muslim.
Along with that, there are no such conditions of transferring your property to another person. Let’s suppose, you have bought land and constructed a house on that in a recent time. Now someone is interested to buy that and the deal comes into sense. Or you have a property and you want to transfer it to any person as a present. So this time, you need to follow the procedure of property transfer.
Procedure of Transfer Property Ownership In Pakistan
In this blog, we are going to discuss a very important topic that matters as a backbone to own a property. Buying a property has a procedure to follow in a legal term to avoid problems in the future.
Many questions come to mind regarding the transfer procedure of any property that you own.
We’ll be discussing the best and possible ways for a sustained property transfer procedure in Pakistan.
What is Property Transfer?
Property transferring simply means that documentation (Paperwork) is recorded and signed between both (buyer &Seller) in the court that confirms the property ownership is being changed from one person (seller) to the other person (buyer).
It can also tell that the owner has changed or one additional partner has been added to the list.
Here, we’ll be discovering some basic and common ways of property transfer.
Let’s get started.
There are three common types of transfer procedure of property in Pakistan:
2:Transfer as a gift
The most common method to Transfer Property in Pakistan is transferred by sale or exchange when someone sells his property to other in exchange for money. According to the Transfer of Property Act 1882, “Sale is a transfer of ownership in exchange for a price paid or promised”.
In Pakistan, A very common way of property transfer occurs by selling or exchanging the property regarding receiving money. We call it selling the property. In this method, both (buyer & seller) negotiatethe price of the property. After that, now as the deal has locked so a transfer amount of token shall be transferred against the total sum of the property.
This process includes a Sale Agreement, a written agreement between the buyer and seller. On the agreement, it includes to mention the date of the deal, the value of the property (in price), Bayana (advance/token payment), schedule of payment if on installments, and other selling terms of property along with a stamp paper.
The owner sells his property against money and transfers the property ownership to the buyer.
Transfer as a Gift:
Transfer of property before the death of the owner is a referral as a gift. This is a method in which the owner of the property transfers the ownership of the property to another person as a gift whether it is moveable or non-moveable. But gifting a property can become invalid if the reasons behind the transfer are:
- By force
- Under influence of someone
Any changes in the ownership of the property, it is compulsory to declare it as a gift by the donor and also accepted by the recipient.
At this stage, to complete the land transfer procedure in Pakistan, the documents of original allotment letter, no-objection certificate from the building authority, property tax clearance, and Bank draft. These documents are needed for a successful transfer of a property. By this procedure, the land documents will be entitled to the property’s new owner.
In Pakistan, after the death of the owner, who owns all the property? This question is very common as that person’s family (heirs) holds the ownership. Normally, it is not adopted as the will of the dead person because it is considered the legal right of the family (heirs) by the rights of Islam to overtake the property (for Muslims).
The Civil Court grants a wirasatnama as an obligatory document that is a must require-step to legal authorities to fulfill the procedure of inheritance certificate.
Some of the major documents are needed to get an inheritance certificate;
- Death certificate of a deceased person
- CNIC of the deceased person
- One independent witness
- Statement of heirs
- Mutation of immovable property
These two common but main facts for Transfer of Property in Pakistan are mainly due to when someone inherits the property after a person’s death or if a property is given as a gift to someone. For both of the specified cases, it is mandatory that the age of the recipient is above 18 and also has a sense of wisdom to understand its value.
Q1: What are the 3 common ways of transferring legal ownership of a property?
Ans: The 3 common ways of transferring legal ownership are a) Sale, b) Gift, and c) Inheritance.
Q2: How do you transfer property to another person?
Ans: Sale Deed. The most common way of property transfer is through a sale deed. A person sells a property to another person, and then a sale deed is executed between the two parties. Once the sale deed is enlisted in the sub-registrar office, the ownership gets transferred to the new owner.