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Frequently Asked Questions

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Frequentlt Asked Questions

Here you can get answers for frequently asked questions, but if you still have any other question which is not listed here then Click here to contact us.

What safety precautions should I take before buying property or real estate in Pakistan?

Before buying property in Pakistan a complete and thorough probe in respect of title of the seller to the real estate must be carried out. A general practice is to investigate title of the current seller and any previous owner. Original title document in favor of the vendor must be obtained along with other relevant documents including mutation in favor of the vendor, a fresh copy of fard, aks shajra and no-objection certificate or non-encumbrance certificate as the case may be.  If the vendor is selling the property in the capacity of an attorney of the owner then it must be ensured that the power of attorney is duly registered with the relevant sub-registrar. A holder of a forged and fabricated power of attorney is not at all able to transfer a valid title in an immovable property to a third party.

What is Mutation (Intiqal)?

Mutation is a document containing an order by a revenue officer; who must be at least an Assistant Collector of grade III, whereby an entry in the record of rights is to be altered, changed or mutated in revenue record.

What is meant by Fard Malkiat?

Fard Malkiat also known as (Record of Rights/ Jama Bandi/Misal Haquiat/ Register Haqdaran-e-Zameen) maintained for determination/record of various types of rights in the immovable property.

What is Aks-Shajra?

Aks-Shajra means image of a specific piece of land/specific khasra number from the map/plan of an estate or village defining its boundaries.

What is meant by Khasra?

Khasra is a piece of land with specific measurements and a specific number.

What is Khasra Garrdwari?

Register Kharsa Gardwari is a register maintained for record of possession/cultivation.

What is meant by Conveyance Deed or Sale Deed?

Conveyance Deed or Sale Deed is a deed document by which the title of property is conveyed by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. Deed document will help you ascertain whether the property, which you are buying, is on land belonging to any development authority, society, builder in which the property is located, whichever the case may be.

From where I can obtain my house documents or title deeds of my property?

You can obtain your house documents or title deed documents from office/department by which title of the house was conferred or transferred.

In name of a Company, property is registered before purchasing it, what documents should I inspect?

Before purchasing property from a company you should verify from the Registrar of Companies at Securities & Exchange Commission of Pakistan that the property is not mortgaged or is not being used as a security against a loan, otherwise it will not be considered as a freehold property.  In addition, check memorandum of association that who is authorized to act on behalf of company for selling the property, if resolution is required then the same must be passed and verified. Further, inspect original title documents from the selling company.

Is transfer of every immovable Property needs registration in Pakistan?

Transfer in the case of immovable property of the value of Rs 100/- and upwards only be made by a registered sale deed.

An overseas Pakistani without visiting Pakistan can buy Property?

Yes, without coming to Pakistan an overseas Pakistani can buy property in Pakistan.

How do I own a house?

You can own house by purchasing from a private person, private builder, by allotment or purchase from public authority i.e. any development authority (LDA, CDA, FDA, MDA etc.) and by becoming member of any co-operative housing society.

What is Power of Attorney?

Power of Attorney is the power given to an agent by the principal to execute several acts and deeds for and on behalf of the principal. A power of attorney may also be given by a person to another to appear before any Court, Tribunal and Authority, buy sell, maintain real estate etc. When power is given in respect of a number of acts in a number of transactions, it is called General Power of Attorney and when power is given in respect of a particular act pertaining to one transaction; it is called Special Power of Attorney. General Power of Attorney must be registered.

I am going to buy a flat in a building under construction, what are the papers should I check?

Check approved plan of the building along with the number of floors; ensure that the floor that you are buying is approved. Check if the land on which the builder is building is his or he has undertaken an agreement with a landlord. If so, check the title of the land ownership. Check the building byelaws as applicable in that area and ensure that the building is without any violation of front setback, side setbacks, height, etc. Check specifications given in the agreement to sell and that given in the brochure and see if he is providing the same actually on the ground or not. If the builder is a company incorporated with Securities & Exchange Commission of Pakistan, it may be checked that the company is allowed to do the business of sale and purchase of real estate.

What are important documents one should check before buying any property?

Check approved layout plan, approved building plan, ownership documents, ask for all the deeds of title related to the property to be purchased, examine the deeds, ascertain the survey number, check previous encumbrances and loans, if any, on the property, request vendor(seller) to obtain, if applicable, consent permission, sanction, no objection certificate of various authorities, tax receipts and bills, measure the land etc.

What is meant by Survey?

A drawing or map showing the precise legal boundaries of a property, the location of improvements, easements, rights of way, encroachments, and other physical features.

What is stamp duty and who is liable to pay the stamp duty, the buyer or seller?

Stamp duty is a fee/tax levied by the government on transfer of property and must be paid in full and on time. A stamp paid document considered proper and legal document. The liability of paying stamp duty is that of the buyer unless there is any commitment to the contrary.

What is file?

Area which is not balloted yet or has been balloted and on ground or not on ground, and possession (where construction can be started immediately) is not granted by the builder / developer / Authority. Prices of files may fluctuate sharply (up and down) as per market conditions. Files are usually booked on installment plan for 3 years cost of land and 3 years for development charges in most cases. One should be clear before investing in file that how much time is required for holding

What is Plot?

Area where physical possession (where construction can be started immediately) is granted by the builder / developer / Authority

Physical possession (Plots) are more stable in different conditions of market as compare to files or Plot files which shows more fluctuation in different market conditions (up and down). Plots files are called which balloted and plot numbers are allotted but still possession is not granted by Builder / Developer / Authority for living.

How to verify a Society?

After selection of desired area of City where you want to live or invest, next step is “How to verify a Society”

Before investing / buying plot / home / commercial in any society you to have to consider followings:

  • Is Housing Society is registered with Securities & Exchange Commission of Pakistan (SECP) or Cooperative Department?
  • Is Society land transferred on Society name in Revenue Record?
  • Is Housing Society has valid NOC from Local Development Authorities (LDA / CDA / GDA / MDA / FDA as per approved map?
  • Is Housing Society has made arrangements for development work like Water, Gas, Electricity & Sewerage etc. on site?

Pre Launch bookings are highly not recommended. You must wait for official launch of booking by publicly advertised in major news paper (s) with confirm location, booking schedule, installment time frame and tentative time for possession (year of possession).

Before investing in any project you must keep eye on News Paper warnings ads by Local Authorities against projects which are not approved. Usually these local Authorities has a list of approved Housing Societies, as well as Unapproved Housing Schemes lists. You may also visit Local Authority Office and can verify about the scheme before investing.

A marketing company / affiliates / agents may highlight a project which they are dealing with for their interest.

What is Balloting?

The term balloting was generally used for assigning plot numbers to the allottee for a said project in Pakistan Real Estate. In General Ballot mean “decide the allocation of (something) to applicants by drawing lots”. There are two types of Ballot in Pakistan Real Estate Market in General now:

  • Booking Ballot
    • Booking ballot mean, when a project is being offered on installment plan and people apply for the booking and ballot held for successful and unsuccessful applicants, called Booking Ballot
  • Plot Ballot
    • Plot Number Ballot mean a draw in which numbers allocated to each allottee against its file, in other word Map issued with plot numbers.

Now a day people are often trapped in the name of ballot by Agents / Developer / Builder / Authority. It is recommended to ask Agents / Developer / Builder / Authority before booking any project that it will be a confirm booking or there will be booking ballot, also when Plot Ballot will be held?

Difference between Allocation & Affidavit Files?

Affidavit files are agreement between land holder and DHA. When landholder surrender his land in favor of DHA, DHA issue affidavit files in his favor. Usually this proportion is 2 files of 1 Kanal against 1 Acre of land. DHA give a favor to land holder that in affidavit file Seller name is written and Purchaser name is open. In other word you can say it is a open file. Land holder has this opportunity that he can fill the name in Buyer filed and submit it to DHA and attach a transfer fee voucher (paid by buyer) and DHA transfer this to buyer name. Now this affidavit file is submitted back to DHA. For Buyer DHA issue an intimation letter to intimate him that file has been transfer in your name. Now Buyer need to become the Member of DHA. Buyer submit the membership fee to DHA and DHA issue an allocation letter to buyer after due course of time.

Now it become an allocation letter. Now it will be transfer as like plot transfer, NDC will be applied, all Govt. taxed like Stamp Duty, CVT, Advance Tax on Sale and Advance Tax on Purchase & DHA Transfer fee etc. will be applicable. Once it become the allocation all the transfer charges will be applicable on every next transfer. So you can say usually files are first affidavits and then become allocations. However in case of direct allotment like booking or to Army Personal it is directly an allocation file and all transfer fee and charges are applicable on first transfer even, because it is a direct allocation.

When Ballot/Development will be held/started/completed?

Most common question after booking of plot by investors in any relevant society by Dealers. Usually to satisfy their clients, Dealers answer this question as per best of their knowledge (knowledge is always limited up to any extent). Dealers communicate with relevant society Front End Management Officials or Customer Relationship Officers (CRO) which usually are not aware of ballot date / development schedule / development status and development completion timings. In result investors get dissatisfied due to mismatch of information or bogus information.

Tips: Always contact Builder / Developer / Authority directly to get right answer for such queries like Ballot Date / Development Status, Completion of Development etc. Only Builder / Developer / Authority can have best answer for this question, only they can give exact or estimated date for ballot / development started and completion.

What are commision charges of agents/dealers for sell, buy or rent deal?

In common it was 2% from both side (seller and buyer) but due to intensive competition in market agents/dealers accept 1% or as per mutual understanding/agreement between agents/dealers and seller/buyers. In Rent case it is half amount of the one month rent as per agreement or mutual understanding/agreement between agents/dealers and Tenant/Landlord.

What is the formula for property rights under Islamic inheritance laws?

Shares under the Islamic inheritance law depend on the closeness of relation to the deceased. Shares also differ when a person belongs to Sunni or Shia sect.

Individual Women Inheritance Right
As Mother 1/6th of X
As wife
  • 1/8th of X if she has any children
  • 1/4th of X if she does not have any children
As Daughter
  • ½ of brother’s share, if she has brothers
  • women having sisters
    • Sunni/Hanafi – 2/3rd of X is divided equally among themselves
    • Shia….total inheritance is equally divided among themselves
  • Women having no siblings
    • Sunni/Hanafi – 1/2 of X
    • Shia- All property (X)
  • X in above table means “all wealth of the deceased person after settlement of mortgages and loans”.