Obtaining a Sales Certificate (or Non Objection Certificate)
Agency: District Officer Board of Revenue (Mukhtiarkar and Assistant Commissioner)
The Deputy District Officer of the Board of Revenue or the District Officer Board of Revenue (Mukhtiarkar), issue a “Sales Certificate” (No Objection Certificate) in favor of the Seller permitting the sale of the property, provided that the entire amount due and payable in respect of the property has been satisfied. Since 2016, the Board of Revenue implemented standardized sales certificate which is printed on a secure, QR code encoded, verifiable paper. The veracity of the Sales Certificate can be checked online at https://sindhzameen.gos.pk/demo_Registries/prcCNIC.aspx
Please note that other Land Registration Authorities in Karachi might have a different procedure to issue their Non-Objection Certificates when applicable.
Time and cost: 14 days, PKR 300
Advertisement of transaction in newspapers inviting objections
Agency: Local Newspaper
A Public notice is placed in two different newspapers having circulation of 100,000 copies, (usually in English and in Urdu newspaper), inviting objections/claims. After publication, there is commonly a seven-day waiting time for arrival of objections, if any. Advertisement is published in local newspapers (dailies) having a large circulation. Simultaneously, the buyer will verify the authenticity of the documents presented by the seller as well his authority to act on behalf of the company to sell this property. At the same time, there is a checking for any encumbrances.
There is no specific legal requirement to advertise the property transfer, but it is a common practice to reduce the risk of disputes.
Time and cost: 8 days, PKR 10,000
Conduct title search
Agency: Sub-Registrar’s office
As a part of the due diligence procedure, it is a common practice to search the books and verify whether the counterpart actually owns the property. Lawyers also look into the previous owners. The process is completely manual and does not have cost.
Time and cost: 7 days, no charge
Hire deed writer or lawyer to draft sale purchase agreement
Agency: Deed writer or lawyer
It is common practice in Pakistan to hire a lawyer to draft the sale purchase agreement.
There is a checklist now available online with list of documents required for registration, although practices might change depending on the sub-registrar office.
Additionally, the Board of Revenue has uploaded standardized deeds in https://sindhzameen.gos.pk/demo_Registries/templates.aspx on February 2017.
Time and cost: 5 days, PKR 7,500 (PKR 5,000-10,000)
Challan is issued at a relevant agency
Agency: Sub-Registers Office
Challan is issued in the office of Sub-Registrar, Board of Revenue or any other relevant agency such as Defense Housing Authority, Karachi Municipal Corporation, Karachi Development Authority, and others.
Time and cost: 1 day, no cost
Payment of stamp duty, capital value tax, Town tax and registration fee
Agency: Government Treasury or National Bank of Pakistan
The following payments must be made:
- Conveyance stamp duty 2% of property value;
- The capital value tax (CVT) of 2.5% of the property value. After the 18th constitutional amendment (April, 2010), the CVT on property was transferred to the provincial governments. CVT is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property. However, where the value of such property is not recorded, the CVT is payable at Rs. 100 per square yard of land area;
- 1% of property value for the registration fee; and
- 1% of the property value for the Town Tax Fees are paid at the Government Treasury or National Bank of Pakistan, an autonomous bank jointly owned by Government of Pakistan and public, who issue receipt of money which is taken to the Stamp office of the Government.
The receipt of payment is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.
Board of Revenue has introduced Property Tax Calculator online which can be used to calculate the applicable taxes easily and same can be paid at any Government Treasury/National Bank of Pakistan.
Upon presentation of paid challan, Office of Stamps issue a stamp paper with calculated amount of stamps on it. The Stamp paper is then used to print the deed which was prepared in procedure No.4.
Time and cost: 1 day, PKR 340,968.04 (2% of property price (stamp duty) + 1% of property price (registration fee)+ 1% Town Tax + 2.5 % of the property price (Capital value tax). Capital value tax is not included into cost estimates.)
Receipt of payment is taken to Stamp Office
Agency: Stamp Office of the Government
The receipt of payment obtained in Procedure 5 is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership.
Time and cost: 1 day, no charge
Execution and registration of the deed before the registration authority
Agency: Sub-Registrar of Conveyance/Assurances
The conveyance deed must be executed before the registering authority. Execution of the deed is done before the Sub-Registrar of Conveyance/Assurances of the area, official responsible under the Registration Act. Registration of the deed automatically follows the execution of sale deed. A receipt is issued immediately, but the deed is delivered a few months later. The name of the buyer is recorded in the new deed, showing the change in ownership.
The documentation shall include:
- Conveyance/Sale Deed (stamped after payment in Procedure 5);
- ID of parties;
- Original title deed of seller;
- Sales Certificate (obtained in Procedure 1); and
- If the parties have authorized someone else through a power of attorney, the power of attorney in original with copies.
After submitting the required documents, the parties will arrange an appointment to sign and execute the sales deed in front of the sub-registrar. After executing the deed, the registrar sends the transfer instrument to the scanning unit (there are two in Karachi). The scanning unit scans the deed and inputs essential information in the electronic database for indexation of the sales deed, publishing this information online in the Board of Revenue´s website. The sales deed is then sent back to the sub-registrar office to be delivered to the buyer.
Time and cost: 120 days, no charge
Mutation
Agency: Board of Revenue (or any Relevant land authority)
Once the registration process is completed, and the sale deed has been collected from the registrar office, the mutation processes is carried out at the relevant land owning authority for transfer of ownership.
The mutation is the process of obtaining the new title document. A property mutation is simply the change of title ownership under certain conditions such as sale/purchase or death of an owner and even if the property is bought through a power of attorney (PoA). Through mutation, while the new owner gets the property in his name, the government is able to charge property tax from the right owner.
Time and cost: 7 days, PKR 500
