Buyer’s Guide to Purchasing Real Estate Properties in Pakistan

Buyer’s Guide to Purchasing Real Estate Properties in Pakistan

Purchasing real estate property is one step of diverging your investment portfolio. Not only will you have a mix of investment types, but you are assured that whatever happens to one investment, the same will not happen to the other and thus enable you to protect your income. If you happen to be looking for a property, then you might want to check the real estate industry of Pakistan. The sector has been continuously growing in the past few years and with the drop in mortgage interest loans, it is an attractive place to invest.


Foreign buyers should not be deterred from purchasing property in the country. While the process involved is lengthy, following closely the requirements would ensure a smooth transaction.. Foreign buyers who wish to purchase or rent a property should provide a valid passport, a copy of the landlord/realtors CNIC, attested copy of ownership, valid contract and an employment contract in case the buyer is working for a company. These are just some of the requirements that the government requires whenever buying and selling property.

Buying Properties

Buyers should thoroughly check the property that they are purchasing to ensure that the property is clean and ownership of the property actually resides with the seller. Sales Deeds are the best way to determine if the property is unencumbered and these can be found from the local authorities. It is crucial that buyers check the property to avoid any penalties from the government.

Properties in Pakistan are governed by several laws as well as regulations of the province or municipality where the property is located. The most important law that buyers should take a look at is the Transfer of Property Act 1882, Stamp Act 1899, Land Revenue Act 1967 and the Registration Act 1908. These laws outline the legal requirements as well as liabilities that may arise in buying or selling properties.

For the title to be transferred to a new owner, a Sales Deed or “Bay Nama” must be registered at the government registrar office. The Sales Deed must have a stamp duty affixed on it. The stamp duty shows the percentage of the transaction value of the property and differs depending on the size and value of the property itself. In modern housing properties, a simple allotment letter is sufficient proof that the property is legally transferred to the buyer.

For buyers who are not sure on how to proceed with the transaction, they may hire an attorney or a “Mukhtar-e-Aam” to help them with the legal process. As always, it is important that buyers ensure the authenticity of the Deed as well as the authorities of the attorney they are transacting business with to ensure that all transactions are valid and legal.

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