Property Sale Purchase Rules in Pakistan

Property sale purchase rules in Pakistan are mostly neglected, which leads to problematic deals and distrust in the market. However, these rules are a must to have fair dealings. These rules are mostly governed by the government and housing societies to help in both property selling and buying. 

The real estate business has flourished in the past few years. With the market booming with consultancy and advisory firms, the chances of fake deals have increased. To curb those fake agents and fake deals, everyone must be aware of the basic rules and regulations of property sale and purchase. It helps in a smooth process with authenticity and reliability in the market.

Following is a complete guide to all the rules that you must keep in mind before making a proper deal:

  • Token and Bayana
  • Documents and Verification
  • Stamp Paper Acquisition
  • Tax Paying and Documentation
  • Working out a Sales Deed

Token and Bayana

The first step towards property selling or buying is the payment of token money. It is the amount that a potential buyer pays as a sign of willingness to buy the property. The seller after receiving the token money stops negotiations with any other potential buyers. If the deal falls before any further step, the seller returns the token money with appropriate deductions. The second step after ‘token’ is the payment of the ‘bayana’. 

Bayana is the first official payment that the buyer pays to the seller. It is 25% of the total payment. Bayana comes with an official document, which enlists a set of rules that the buyer and the seller have to follow throughout the process. Proper payment of the bayana is necessary for the exchange of the documents:

Following are some of the details of the property sales agreement that is considered a must in Pakistan:

  • Details of the Property listed for Sale
  • Sales terms for the Property
  • Total amount of the Deal
  • Time duration in which the buyer will clear the amounts

Documents and Verification

After token money and bayana, the seller has to produce the original documents of the property. These documents are verified by the land development authority or the private housing authority. Property documents are checked for the authenticity of the property’s location and the owner.

Additionally, in every property sale or purchase process, several other documents are also required. Following is a checklist of all those documents:

Photos of both parties

  • National Identity Card (CNIC) Copies
  • Title Deed (Document claiming the Ownership of the Seller)
  • Sales Deed (Document having all the important details; agreement)

Apart from the documents concerning both parties, certain other documents are needed for governmental usage. The following checklist enlists all those documents:

  • The Fard-e-Malkiat (The document that officially confirms the ownership of the seller over property by the Land Registry Office)
  • Non-Demand Certificate (NDC). This document shows that the seller does not owe any previous payments over the property. 
  • Authority Letter (Usually issued by the private housing societies for the plots registered for sale)

Stamp Paper Acquisition

Finally, after the verification of the above documents, the final process of property transfer starts. A stamp paper is a document, which drafts the sales deed. Depending upon the value of the property, the stamp paper differs accordingly. The value of a property is mainly influenced by the location. However, each stamp paper lists certain taxes. Following is the tax breakdown enlisted in all the stamp papers:

  • Stamp Duty (3%)
  • Capital Value Tax (2%)
  • District Council Tax (1%)
  • PKR 500- Fixed Registration

Tax Paying and Documentation

After the completion of the draft in the form of stamp paper, both parties have to pay the required taxes. It marks a start to the final step. Tax-paying is usually a complex process; however, the private residential societies make this process very much facile for everyone. Recent steps by the government have also made this process easier for the public.

Working out a Sales Deed

After the execution of the previous steps and collection of the necessary documents, it’s time to work out a sales deed. It is always better to hire a sales deed writer or a lawyer who knows all the details of what and what not to be included in the agreement.

However, both parties can work on the sales deed themselves with mutual concern. Punjab Land Record Authority’s Registration of Deeds portal provides a complete format for each sales deed to be customized.

Execution of the sales deed is the last step before a property is officially transferred to the new owner. A sub-registrar or magistrate verifies all the important documents and listens to both parties. After confirmation, he leaves a satisfactory remark that the property is now officially transferred to its new owner.

All the above-mentioned steps are generally followed in all property sale and purchase deals. Hashi GOC is a firm that gives a complete consultancy guide for property sale purchase rules. With professionally trained teams, we are providing excellent services. For more details, visit us at our office or contact us at:


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