- December 23, 2022
- Posted by: Shahrukh Abbas
- Category: Blog
Buying or selling property can be tedious and complex if you are doing it for the first time. Even though the government is involved and the country is stable, there are a lot of other things to think about when buying or selling a home in Pakistan.
But the property market in each province is different, even though the general rules stay the same. On the other hand, real estate has been seen as one of the safest and most reliable ways to invest in Pakistan for a long time. Also, it is one of the fastest-growing and most innovative industries in the country, making up a large part of the GDP.
If you have been looking for a guide to buying and selling property in Pakistan, then you have just arrived at the right place. This blog post will go into great detail about how to sell and buy property in Pakistan. Before we begin the main course, let us share some professional advice with you.
Lahore Smart City is Pakistan’s best and most profitable place to invest in real estate.
Before we begin the process of buying and selling property in Pakistan, we will discuss the laws and acts involved in buying and selling property in Pakistan. There are four major laws involved in buying and selling properties:
• Transfer Of Property Act 1882
• Stamp Act 1899
• Land Revenue Act 1967
• Registration Act 1908
The Property Buying Process:
The property buying process can be a daunting task if you don’t know the basics. The buying process simply begins with determining the legality of the location. If it is legal property authorized by the concerned development authority, such as LDA, RDA, FDA, MDA, etc., go for it. For instance, Capital Smart City Islamabad is an approved real estate project by the RDA. Check the no objection certificate (NOC) before you proceed with the buying process. One more thing that is important to determine is the credibility and experience of the developer.
If the project is from a well-known developer, you will not need to negotiate before purchasing. Check the market to confirm the rates of the properties in your area. You can also get help by hiring a real estate agent. An experienced and credible real estate agent, such as one from Masters Real Estate & Builders, can help you get the most accurate deal. The buying process can be summed up in the following steps:
• Check the legality
• NOC Approved
• Credibility of developers
• Shop around the market
• Hire a real estate agent.
• Transfer Charges
Last but not least, consideration in the buying process is to settle the transfer fees and other payments. Before you can move forward with the buying process, you need to pay the transfer fees and any other fees. The following charges need to be addressed in the settlement:
• Transfer fee
• Stamp duty
• Payments Due on the Buyer
The Property Selling Process:
To begin with the selling process, you need to make sure that the property is ready to be sold. Make sure that the land you are about to sell is in good condition and free of flaws that the buyer may question. Furthermore, whether it is a home, a residential space, or a commercial space, make sure it does not require any maintenance. Get all your maintenance and repairs done before you proceed with the selling process.
Once your property is ready to be “On Sale,” go for a manual search by yourself. Ask for referrals, and shop around in the market to inquire about real estate trends and the rate ranges in the market. However, you can Hire a Real Estate Agent to sell your property. Hiring a real estate agent will just reduce the hassles of doing it yourself. Ensure you hire legitimate real estate agents, such as real estate agents from The Masters Real Estate & Builders.
If you know how the market works, you’ll 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 a price, you will receive “token money” from the buyer. The token money is the partial amount needed to seal the deal.
However, “Token Money” and “Bayana” are two different terms because bayana involves written promises, whereas token money doesn’t. The following steps can also be used to describe the property-buying process:
1. Prepare your property for sale
2. Search in the local market
3. Hire a real estate agent
4. Quote a realistic price.
6. Token Bayana
7. Close the deal
Documents Required When Buying or Selling Real Estate in Pakistan:
The documents are a critical part of your buying and selling process. However, the inviability of the documents may cause a delay or even harm to your deal. So, if you want to sell a property in Pakistan, make sure you follow all the legal steps and rules. The following are the documents required in the buying and selling process:
• National Identity Card (NIC) Copies are required for both (seller and buyer)
• Recent photographs of both parties (seller and buyer)
• The original title deed of the seller
• Fard-e-Malkiat also simply known as the ‘fard’
• Non-demand Certificate (NDC)
Once you are done with all the formalities, you can transfer the property into the name of the buyer. Usually, this may take a few days or weeks, depending on public holidays.