A Guide to Selling and Transferring Property in Pakistan

Sales and purchase of real estate are standard in the property business. Every country has some set rules to keep things transparent, reliable, and authentic. The purchaser and seller need a specific set of documents to get the property registered. Are you selling your property for the first time? Do you need to be informed of Pakistan’s property transfer procedure? Also read our blog Property registration process in Pakistan.

Understanding the legal requirements and process of real estate transfer and selling is important for an investor or a homeowner. The understanding enables both parties to close the deal smoothly and successfully.

Guide to Selling and Transferring Property in Pakistan:

The transfer of property in Pakistan is a simple task. Those who have gone through it consider the procedure a piece of cake. On the other hand, new people are worried and confused about properly getting it done.

Worry not! You have landed on the right page. has a comprehensive guide on transferring and selling property in Pakistan. It will cover everything from real estate ownership to documentation, taxes, and various challenges that will come their way.

Before we start, let’s look at the meaning of transferring property and why it is essential to selling and buying real estate in Pakistan.

1. Transferring Property:

According to legislation, real estate owners must verify the property under their name.

Real estate ownership should be established, whether land or apartment in a high rise. Only an actual owner (under whom the land is registered) can sell real estate. It is a basic fundamental of property selling. Also read a comprehensive guide about Property Rights of Women in Pakistan.

Property transfer involves the owner transferring the land title from one person to another in Pakistan. Property transfer can occur in various ways for multiple reasons, including gift deed, mortgage, inheritance, exchange, lease, etc. Hence these explanations elaborate that transferring property is a necessary procedure.

2. Eligibility of Property Transfer:

Any person who can sign a contract document is eligible to transfer ownership of property in Pakistan. As per Contract Act 1872, a contract is a document that acts as a binding agreement between parties. It means it is a legal document for purchasing and selling real estate/land in Pakistan. Also read our blog What does Property inspection cover.

However, a few exceptions exist for people who are not eligible for property transfer. Let’s have a look:


Any person under 18 is considered a minor, hence not eligible for the process.

Unstable/ Impulsive persons:

People who are not mentally stable and individuals who cannot understand the results of their actions. It includes people who are mentally ill or suffering from being temporarily disabled physically or mentally, for instance, in Coma etc.

Under Legal Prohibition:

Individuals not allowed to sign contracts legally cannot transfer real estate in Pakistan.

Steps of Selling and Transferring Real Estate in Pakistan

The land transfer process is time-taking, yet it is simple and convenient with minimum legal proceedings. We have broken down the process into steps to help you understand better. Let’s have a look:

1. Token (بیعانہ):

It is the first step of closing deals after the seller successfully secures the client. Token money means that a buyer gives around one-fourth of the total price of sales money to the seller. It can be lesser or more in percentage. The Token is an agreed (fixed) amount between the seller and the buyer to represent the finalization of the agreement from both parties.

The token is given to a seller by buyers after negotiations and based on the contract of sale/purchase. The agreement contains every detail of the selling and purchase process. Once the token is handed over to the sellers, they hold negotiations with other buyers. Also read our blog Best Areas for Real Estate Investment in Islamabad.

Typically, a period is written in the contract after the decision to pay the remaining amount. It can be one day or one month, etc. The token amount is returned if the sale is not completed in a specific time. On the contrary, if the buyer fails to pay the amount in a specified period, the seller can retain the token amount and cancel the sales deed.

2. Property Sale Agreement:

A sale agreement is a set of documents required in a sales deal. The records include all the necessary information for the buyer and seller involved in the property transfer process. Here is the list of documents that are required to attach to the Token / Bayaana Form:

  • Property’s Sale Terms
  • Details of Property owner name (verified) with more information about the property.
  • The total monetary value at which the property is being offered for sale
  • The last date for the buyer to pay the total remaining amount

3. Lists of Required Documents:

Here is the list of documents that are required to have at the time of property transfer. It helps to complete the process smoothly and without any delay.

  • Passport Size Photos of both Seller and buyer (Recent photographs)
  • I.C photocopies of both buyer and seller.
  • The Deed of Original Purchase of the Seller (It should start from the time they purchased real estate).
  • The original document of Sale Deed. Sale Deed is contract of agreement between both parties.
  • The other documents needed in sales and transfer deed varies from province to province, region to region, and area to area.
  • Another vital document required is the ‘Record of Rights (فرد ملکیت)’ a form. The form can be obtained from the real estate registration office. The state ensures that the land is under the name of the seller.
  • NDC is another document required at the time of the sale of the property. NDC is an acronym for Non-Demand Certificate. It shows that there is no fine due on the property. The form can be obtained from the local development authority’s office, depending on the location of the land.
  • In private housing schemes, parties must request a letter from the society to complete the property transfer process. The letter can be used as a substitute for the Record of Rights (فرد ملکیت).

4. Transfer Contract for Real Estate:

It includes two final steps, i.e., Tax & Stamp Duty and Sales Deed Draft. It is one of the final and crucial steps of the property transfer process. The seller needs stamp paper to compose a sales deed; it will be called a sales contract. Buyers will pay the taxes and stamp duty during the process.

Here is the breakdown of the taxes involved in this step:

  • Capital Value Tax 2%
  • Stamp Duty 3%
  • Registration Fee (it varies according to government order)
  • District Council Fee 1%

5. Sales Deed Draft:

The Sales Deed is recommended to be created by a real estate lawyer or real estate agent. The person who drafts the sales deed should be aware of the rules and regulations & bylaws of the transfer and selling process. It is a harmless way to eliminate the risk of complications that arise in the future in case you are doing it yourself.

Process after Sales Deed:

The final step of the process is to take the required documents to the registrar’s office. The sub-registrar will call the seller and purchaser and hear the verbal agreement for property trading. Afterward, the parties will sign the documents and put fingerprints on the documents. It is necessary to verify the sale and complete the process of transfer. Once done, the official will register the sale deed successfully, and the property will be successfully transferred to the buyer.

Property Dealer Commission:

The property agent’s commission is around 1 % of the property’s total value. The value is taken from both seller and buyer as a commission to the dealer or real estate agent. Sometimes the agents ask for 2% of the total value, and some charge lower than 1%. The amount varies for different reasons like real estate company reputation, etc.

Let’s wrap it up:

That’s all for now! We hope the guide will make the selling and transferring process of property easy for first-time sellers and buyers.

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