A Guide to Selling Property in Pakistan

A Guide to Selling Property in Pakistan

It appears that selling property is always easier than buying. Property sellers rarely have to pay multiple taxes or visit multiple clients because interested parties frequently come to them. However, this does not imply that the procedure is simple. It may be less difficult than purchasing, but it is far from simple. In this article, we will go over everything you need to know about selling property in Pakistan.

In Pakistan, the property selling process is similar throughout all residential properties, with minor differences set by individual developers. The most common question is how to transfer property ownership in Pakistan. The transfer takes place at the city's land development authority's office. The transfer of projects belonging to private and registered developers takes place in their offices.

PRE-RESEARCH AND FINDING AN AGENT

When selling property in Pakistan, there are a few things to keep in mind. Let us go over each one in greater detail one by one.

When you choose to put your house up for sale, it is best to research the market value on your own rather than relying on an agent. Knowing the market value of your property will assist you to determine the ideal price. This practice benefits both the buyer and the seller. When you've decided to sell your home, double-check market rates from other partners to determine that you're getting a fair price. This requires a significant amount of effort on your part, but it will pay off in the long run.

You must find a real estate agent once you have determined the market value of your property. As much as you may be urged to sell your property without using an agent, choosing the right agent is the major factor in a profitable transaction. It is also among the quickest ways to sell a home in Pakistan. It saves you the trouble of having to go through all of the processes on your own because the real estate agent will manage the tedious processes himself.

You can also learn how to sell property online in Pakistan and advertise your property on Jaageer.com.

THE COMMISSION OF THE AGENT

Agents are awarded a commission, which is typically one percent. They are occasionally willing to adjust the commission percentage based on the rate at which an agreement is closed, but this is uncommon. In any case, you should speak with the agent ahead of time and finalise the commission portion as well as the date it will be paid.

In most instances, the commission is paid when the full payment is received. When the customer paid the initial deposit, it is sometimes mutually agreed that the agent will receive a certain percentage of the commission (bayana). To stay out of trouble, make sure all of these terms are discussed in advance.

Token/ Bayana

There are several stages to selling your home. When you've found the right buyer, he must give you a token sum of cash. This is the amount that demonstrates the buyer's intent to purchase the property. It also retains the right to that property for the payer in some ways. Once the token money has been paid, you can deliver to the potential buyer a photocopy of the original property documents for verification.

Here's how it works: If the land is under the territory of the land development authority, you must submit an application asking for a visit to verify these documents for the buyer. In turn, officials from the land authority will request that you and the buyer come to the property on a specific date. On that day, the buyer will receive the documentation that authenticates the property in your involvement.

If you are unsure about the concepts of Token and Bayana, please visit our blog, which contains comprehensive information on both of these concepts.

NO-DEMAND CERTIFICATE (NDC)

The next step in our guide to selling property in Pakistan is to apply for the No-Demand Certificate (NDC) before the final payment date. Property transfers are simply not possible without this certificate, which can be obtained from the office of the private housing society or the city's land development jurisdiction, depending on where your house or land is located. This declaration certifies that you owe no taxes. It also includes tax information for both the buyer and seller, as well as the transfer fee and stamp duty. There is a fee associated with applying for an NDC, which varies depending on the developer. When you receive your NDC, make a copy for the buyer.

Taxation

As a property seller, you should be well-versed in Pakistani property taxes. Sellers must pay CGT (Capital Gains Tax), which is 1% of the property value for tax filers and 2% for non-filers. The CGT is levied on properties sold within two years of the purchase date. This tax payment must be made to the housing society or the land development authority. The buyer, on the other hand, must pay the following fees before the property can be handed over.

LETTER OF TRANSFER

The property transfer system in Pakistan is very important, so the presence of both buyers and sellers is critical.

On a specific day, the two parties visit the respective office, and the buyer hands over the payment in the form of a payment order, after which the officer transfers the property to his or her name and issues a letter detailing the transaction.

Both parties then go to the local property registrar, where the seller acknowledges, in the presence of witnesses and the buyer, that he has sold the property on mutually agreed terms. The registrar then requests that the land development authority make the necessary changes before transferring the property title to the seller.

Your property is then no longer yours. The pay order is usually deposited into your account within a few days. Keep an eye on your bank account while the payment is pending. Remember that constant vigilance is essential when dealing with property. Real estate scams are unfortunately common, but we can assist you as well.

This concludes our guide on how to sell property in Pakistan. 

Stay tuned to jaageer.com Pakistan's best property blog, to learn more about selling property in Pakistan.