Unlike in Pakistan, many people in foreign countries sell and purchase properties through lawyers. Hiring a lawyer is itself a very hectic process but ultimately it reduces the risk of fraud and helps to avoid legal complications. We in Pakistan, rarely go to lawyers for property deals. We either do it ourselves or do it through unauthentic property agents. This practice leads to fraud and illegal deals many times.
The real estate gurus always recommend involving a practicing lawyer to take care of the legalities involved in a real estate deal or at least an authentic real estate agent to completely guide you through the process. This will not only help you avoid potential fraud but also help you secure your investment.
The number of complications in property deals is very high. Therefore, we always recommend our readers to must have basic knowledge of issues and terminologies related to real estate.
Today we are going to discuss some of the most frequently asked questions about the real estate market.
1) What is Shajra?
A detailed map of an area with land divided into chunks and each chunk is labeled by a specific number is called Shajra. A Shajra includes all details of each khasra, such as its size and location.
2) What is Khasra?
Khasra is that particular piece of land from Shajra which has been labeled with a specific number.
3) What is meant by fard e milkiyat?
Fard e milkiyat is a record of rights/ register haqdaran-e-Zameen. It’s maintained by the government authorities to determine the legal owner of the land and to keep a record of rights in immovable property.
4) What is meant by Tattima Registry?
Tattima Registry means a supplementary sales deed of khasra. Means a supplementary sales deed of a particular piece of land.
5) What is Baye-Nama?
The Baye-Nama or Register sales deed is the document that creates a title in immovable real estate property.
6) What are some of the laws that deal with the real estate sector of Pakistan?
Some of the laws in the constitution of Pakistan which deals with the real estate segment are as follows:
1) Transfer of Property Act, 1882.
2) Land Revenue Act, 1967.
3) Stamp Act, 1899
4) Registration Act, 1908.
Moreover, always consult a lawyer for guidance regarding real estate laws.
7) Can we use the residential property as office space?
It’s illegal to use a residential property for commercial business. However, there an exception for some businesses such as IT services can be operated from residential areas.
8) Do we inheritance law in Pakistan?
Yes, Pakistan has several inheritance laws, which are applied depending on the religious affiliations. For example, Islamic personal laws are for Muslims and people belonging to other religions have inheritance law as per their religious guidance.
9) Can I buy a property in Pakistan as an overseas Pakistani without visiting?
Yes, an overseas Pakistani can easily buy a property in the country without visiting Pakistan.
10) Do I need to register the transfer of immovable property every time?
Yes, every transfer of immovable property needs to be registered and transfer. It can only be made through a registered sales deed.
11) What are the necessary documents to legally own a property?
The only document you need is a deed to verify the transfer of property in your favor. This can include other documents such as sales deed, allotment letter, and sale certification.
12) What is meant by power of attorney?
Power of attorney is a form of power, assigned to an agent by the principal to conduct an act and deed for and on behalf of the principal. A power of attorney can also be given from person A to person B to appear before the court, tribunal, and authority to complete any real estate deal or transaction. When a power is given to authorize certain transactions, it’s called a general power of attorney and it must be registered.
13) Can a person having power of attorney can transfer property in his name?
No, the person who is assigned as power of attorney on your behalf has a fiduciary duty to act as per your interest and do what you would do yourself, in case if possible.
14) Can I revoke my power of attorney?
Yes, you can revoke your power of attorney anytime.
15) Is my power of attorney is for a lifetime?
Power of attorney can be life long and in that case, it will end after death.
16) In which case, power of attorney get canceled?
As mentioned in the previous question, it can be canceled on the death of executants and it can so be canceled by the executants in his life.
17) Can a mortgaged property be sold?
No, an immovable mortgaged property cannot be sold.
18) What is stamp duty?
Stamp duty is basically a tax le jee by the government on the transfer of property.
19) Who is liable to pay stamp duty?
The buyer is liable to pay the stamp duty. However, in some cases, sellers also commit to paying it themselves.
20) Which authority maintains the land record in Pakistan?
District Administration Revenue department is in charge of maintaining land records. They also decide the boundaries of property and ownership.
21) How can I sell a property as a co-sharer?
You can sell the property as co-sharer but you will be authorized to sell only the extent of your share.
22) How can we differentiate a will from a gift?
A will is only after the death of the maker, whereas a gift can be made during a lifetime. A property owner is authorized to gift his entire property to the legal heir in his lifetime, but he cannot do the same through a will. However, a property owner can make a will to give one-third of his property to someone who is not the legal heir. And if this favor is made for a legal heir, it requires the consent of all other legal heirs.
23) What are the essentials of a gift?
There are basically three essentials of a gift:
1) Offer by the donor
2) Acceptance by the person to whom the gift is being given
3) Delivery of possession