Everyone who is involved in the buying and selling of properties must have a basic knowledge of the legalities. In developed countries, the transfer of property is carried out through a lawyer but in Pakistan appointing a lawyer just for buying or selling a property is not a common practice. So, to avoid fraud and any other mishap, one should educate himself about the basic laws and rights of properties.
Owner of Land in Pakistan?
Before moving forward, let us discuss who can own a property in Pakistan.
Article 23 says,
“Every citizen shall have the right to acquire, hold, and dispose of the property in part of Pakistan.”
According to the constitution, the federal and provincial governments can also acquire land when the need arises.
The Property Laws:
In Pakistan, the buying and selling of properties take place under specific laws. The real estate sector of Pakistan is governed by these four main laws;
- Transfer of Property Act, 1882
- Stamp Act, 1899
- Registration Act, 1908
- Land Revenue Act, 1967
For a better understanding, let’s discuss these laws.
Transfer of Property Act, 1882:
This act regulates the transfer of Pakistani land or property. The act says that the transfer of property refers to the process by which a person transfers property to another person. According to this law, only a legally entitled person is capable of transferring a property.
Transfer of Property Act provides details about the individuals who are permitted to carry out the process of buying and selling, the operation of transfer, oral transfer, and the forms and types of assets.
Stamp Act, 1899:
Stamp Act, 1899 mentions the stamps used while buying or selling a property in Pakistan. It has a direct on the revenue of the government. This law mandates the buyers and sellers to pay a specific sum of money when they use a stamp to make their sale or purchase of real estate legal. This act guides the buyers and sellers to use the stamp for legalizing the buying and selling of their properties.
The rate of stamps may vary as per the government policies.
Registration Act, 1908:
The initial purpose of devising this law was to confirm the registration of a property. It provides the method and guidelines for registration of real estate and also tells which documents are compulsory for registration. It also mentions the time of presentation of documents, where to register the documents, and who can present them.
Registration Act, 1908 removes all the doubts by mentioning all the proceedings of registration in detail.
Land Revenue Act, 1967:
Land Revenue Act is the relationship between the landlords and the government as it provides instructions related to revenue collection. According to this law, land revenue is the amount that the government receives. The government collects 25% of the net assets after deducting costs and expenses.
The overall structure of the land and revenue department is based on this act. It also mentions the different authorities given to various offices of the land and the revenue department. Land Revenue Act, 1967 also guides the land and revenue department to conduct surveys, mark borders, arbitrations, and partitions.
This is an overview of the major laws based on which real estate purchasing and selling operate.
If you need further guidance or you’re searching for a perfect property for yourself or you’re looking for a lucrative investment opportunity, Pak Residence will be happy to help. You can email us info@pakresidence.com or you can follow us on social media.
