How to Transfer Property Ownership in Pakistan? Here’s what You Need to Know

Want to transfer property ownership in Pakistan?

Luckily for you, I have put my over 10 years of experience as a Transfer Officer to this ultimate guide.

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This ultimate guide covers gift (Hiba) transfer, inheritance (to legal heirs), and sales. Plus pro-tips to avoid costly mistakes. Get it done fast and hassle-free!

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What is the property ownership transfer?

Property ownership transfer (aka change in Title or Inteqal) refers to transferring property ownership from one person or entity to another.

In other words, any means by which property ownership changes hands. These include the purchase of a property, inheritance transfer to legal heirs, transfer through gift deed, family distribution etc.

The common practice of the property ownership transfer procedure involves:

1. Signing an Affidavit, Undertaking, transfer deed or sale agreement
2. Paying Taxes as per areas specified levied, registration fees, and transfer fee
3. Registering the property in the new owner’s name

The important point to remember is that the steps and requirements may vary depending on the housing project/society, location and type of property.

Read Also: ICONS Area Guides and ICONS How-to Guides to stay updated and learn more..

What Does Transfer of Property Mean? and How to Transfer Property Ownership in Pakistan

After purchasing a property, you must transfer ownership into the buyer’s name.

In legal terms, you own a property when you have its ‘title.’

In Pakistan, transferring property means passing the title from one person to another.

This transfer isn’t limited to only a sale; it can also occur through a mortgage, gift deed, lease, or exchange.

In real estate, most transactions deal with immovable properties like land or buildings. But, a plot file, in Pakistan is a movable property due to how they operate within the system.

The question is which law governs property transfer in Pakistan?

The answer is the Transfer of Property Act of 1882 and the Registration Act of 1908 govern the process in Pakistan.

To transfer the property ownership in Pakistan can happen in different ways. Here are some of the scenarios you might encounter:

• Inheritance: When passes away a member of a family, his property transfers to legal heirs.
• Gifting: You can gift your property to someone, but follow the legal process.
• Buying/Selling: When you buy or sell a property, the ownership transfers
• Partition: When co-owners divide a property among themselves.
• Relinquishment: When a co-owner gives up their share in a property.
• Donate to a Trust: When an owner donates his property to a trust. 
• Divorce: When property is divided among spouses during a divorce settlement.
• Merger or Acquisition: When a company transfers its assets, including properties, to another company.

Each scenario has its legal process. Understanding these scenarios can help you navigate the transfer procedure smoothly

A common question I get is: What is a title document?

In other words, What does a title in property mean?

A title is an official document which proves legal ownership of a property or asset. It serves as evidence that you are the rightful owner. Titles can represent ownership of tangible assets like real estate or vehicles. And intangible assets such as trademarks or intellectual property.

In short, holding a title means you have the legal right to use, sell, or transfer the asset.

What is immovable property?

An immovable property refers to fixed assets attached to the earth, such as plots, houses, apartments, shops, and buildings, which cannot be moved without altering their nature.

Who Can Transfer Property In Pakistan?

In Pakistan, you must be:

• At least 18 years old
• Mentally sound
• Legally allowed to sign contracts

The bottom line is you cannot transfer a property in Pakistan. In the case you’re:

A minor (under 18), with mental disabilities, legally barred from signing contracts cannot transfer property.

The Contract Act 1872 defines a contract as a binding agreement between two parties.

That’s why it’s essential to be mentally sound when understanding and signing a contract.

Thus, only individuals who meet these requirements can transfer property in Pakistan.

I see even sound-minded people make mistakes. They do not bother to read the terms of a sale deed or an agreement.

So, I recommend you read and understand all the terms of an agreement, affidavit, or undertaking before signing it.

Need help with the Child Registration Certificate (CRC)? Our step-by-step guide on How to get a B-form will walk you through the procedure.

Required Document

Below is the list of required documents for transferring property from a seller to a buyer:

• Recent photos of buyer and seller
• Copies of CNIC of seller, buyer & two witnesses
• Affidavit from Seller with Three Specimen Signatures
• Undertaking from Buyer with Three Specimen Signatures
• Sale Agreement from seller and buyer
• Original Title Deed (Proof of seller’s ownership) – In some cities (Karachi etc)
• Sale Deed (signed agreement between buyer and seller)

To transfer land through the Revenue Department in any city (Islamabad, Lahore, Karachi etc) or depending on the housing project/society, more documents may be required:

• Fard-e-Malkiat (Record of Ownership)
• Non-demand Certificate (NDC)
• Allotment/Allocation Letter from private housing society (if applicable, replacing Fard-e-Malkiat)
• NEC (Non-encumbrance Certificate)

Note: A non-encumbrance certificate (NEC) is a document which shows that the property is free from any encumbrances or liabilities.

How much does a transfer cost you?

Property transfer fees vary from project to project depending on property type and size.

Property Transfer Tax and Fee

A society/developer or the concerned authority determines the property transfer fee. Normally, it is fixed according to the property size you want to transfer.

On the other hand, property transfer tax is based on a percentage of the property’s DC value.

The exact rate of fee and tax depends on the property’s location and type of the property. The Federal Board of Revenue regulates the matter of property taxes.

For instance,

Below are the tax rates and transfer fees required for a 5-marla plot in the Airport Green Garden:

For Purchaser: The purchaser of the property needs to pay the following fees and taxes:

• Transfer Fee is Rs.40,000
• DC Value of 5 Marla (off-road) is 20,65,500
• 1% Stamp Duty comes to Rs.20,625
• 1% Registration Fee
• 3% Advance Tax for Filers, 6% for Late-Filer and 12%

For Seller: The seller of the property needs to pay the following fees and taxes:

• 3% Gain Tax for Filers, 6% for Late File, 10% for Non-Filer

Here is the best part: You had better confirm your tax status and applicable transfer fee details in advance.

Tax status indicates whether your tax return has been submitted on time, late, or not submitted at all. The late filer status was created in budget 2024.

The point to note is overseas Pakistanis were previously considered filers by default, regardless of their actual filing status.

Now, they are classified according to actual status.

A question legal heirs most often ask is:

Is there a tax on inherited property in Pakistan? or does Pakistan have an inheritance tax?

The short answer is “No“, in Pakistan, no tax is levied on inherited property or assets. The country does not have an inheritance tax, so beneficiaries and heirs are not required to pay any tax on the property.

What is Inheritance Property Ownership Transfer?

Inheritance refers to the process by which a person inherits property from deceased properties.

In other words, when a person dies their legal heirs get transferred their properties such as cash, properties, jewellery, vehicles, stocks, bonds etc.

For instance, when a mother, father, or spouse passes away. You may need to transfer the property into your name.

For that, we here discuss Real Property meaning real estate/property transfer to successors.

It’s important to note that you can transfer property to any individual who is alive and of sound mind.

Pakistan follows the Sharia rules for the division of property. Two laws protect inheritance rights in Pakistan:

• Muslim Family Law Ordinance, 1961
• The West Pakistan Muslim Personal Law, 1962

Muslim law says the family gets the property when someone dies. With that, wife, son, daughter mother, father etc get a share, but the amount varies.

Case Study: Transferring Ownership to Legal Heirs and Selling a Property – A Step-by-Step Guide

Back in the day, a husband came to me and said my wife had passed away.

Further told, she was an allottee of a plot. She left behind a son, 2 daughters, a husband, and a mother being her legal heirs.

So I wanted to transfer ownership of that plot to legal heirs.

I replied: Get a legal heirship certificate from the court of law. 

The point to remember here is, that you must get legal heir-ship from the court where the property is located. For example, if the property is in Islamabad and you live in Multan. With that, you must get the certificate from a court in Islamabad.

Let’s get back to the story.

After obtaining the Heirship Certificate (aka Wirasat Nama) from the court. Came back to me. The court declared shares as per the certificate of Islamic Sharia.

The deceased husband said. He wanted to sell this property as he needed money for construction work that was in progress at that time. 

The problem was his two children were minors while the other was an adult.  

The point is, that you cannot sell a property registered/allotted in the minor’s name.

The solution is: In the first place you need to get a “Guardianship certificate” from the court.

The next step is to apply for a “Permission to Sell” from the court through an advocate.  With that, you will be able to sell the minor’s property.

Documents Required

Here is the list of documents required for property transfer in the name of legal heirs:

• Death Certificate of deceased.
• Legal Heirs-ship Certificate (Issued by a Court of Law or Nadra)
• Family Registration Certificate (FRC) by birth
• Copies of CNIC of all the legal heirs
• Administration Certificate NADRA (In the case you process through Nadra)
• Undertaking from all legal heirs

Key Information: A Legal Heirship Certificate and Wirasat Nama are equivalent documents, both verifying the legitimate heirs of a deceased individual

Legal Heirship Certificate = Wirasat Nama

You can get a legal heirship certificate from either NADRA or a court of law.

The key point to understand here is that both sources are valid and can issue certificates according to the law – there’s no difference between the two.

However, the procedure for obtaining a certificate of heirs is different.

Who Can Apply?

Anyone who is a legal heir above 18 years and holds a CNIC can apply for transfer with the required documents.

How much does inheritance property transfer cost you?

To process the change in title of property you’re required to pay the following:

• Transfer Fee (Some societies/authorities receive half the ongoing transfer fee while others have fixed the amount. The CDA charge the same transfer fee for all types of properties for transferring the property in the name of legal heirs amounting to Rs.5000/- (Five Thousand only).
• Inheritance Property Transfer Taxes (No taxes applicable except Registry charges and stamp duty)

Remember: People often make the mistake of offering middlemen money to prepare transfer documents.

Read Also: Top 10 Property Websites in Pakistan

Inheritance Transfer: (Step-by-step)

Here is a step-by-step guide to transferring property ownership to legal heirs:

Step 1: Submit Document

First, visit the transfer office (in the case of a Society/Project, otherwise Revenue Registrar Office).

With that, submit all the required documents to the office where the transfer is processed.

Step 2: Property Transfer

Second, as per the SOPs of the Housing Society/project, or Govt. Department (CDA, Housing Foundation, JKCHS) procedure transfer of property. They transfer to the legal heirs according to the share mentioned in the succession certificate/legal Heir-ship certificate.

The transferring authority divides the deceased property among the legal heirs. The property share is the shares mentioned in succession.

Step 3: Update Ownership Records

Lastly, the title document issuing authority updates the owner’s name to legal heirs (successors).

With that, they remove the previous owner’s name. 

Hence, they issue you the title document with updated owners. 

A question I get is how do you sell a minor’s property?

The answer to this question is you can’t sell a minor’s property unless you get “Permission to Sell” from a court of law.

With that, a court of law issues “Permission to sell” after a person obtains a “Guardianship Certificate” from the Guardian Court. In it, a father or close relative is declared a Guardian of a minor.

The crucial thing to remember is a court of law issues permission to sell only on producing a “Guarantee by a guarantor holding property”.

And, it takes a week in most cases depending on your documentation and lawyer competency.

What is Property Transfer as a Gift (Hiba)?

Hiba is an Arabic term that means “Gift“.

In Pakistan, transferring property ownership as a gift (Hiba or family transfer) is a step-by-step procedure. It allows a person to give their property to another person without paying any money.

The main point is that a property transfer as a gift must meet three (3) conditions:

3 Pillars Criteria for Gifting Property

Here are the three criteria for gifting a property:

1. The donor has love and affection for Donee
2. Have possession of Property that Donor plan to gift
3. Donee accepted the Gift

How does it work?

A person who wants to transfer their property as a gift (donor) executes a Gift Deed (Hiba Namah) in favour of the person receiving the gift (donee).

Two witnesses are required for the family transfer of property.

Required Documents

Here are the documents required for transferring ownership through gift (hiba) include:

• Affidavit by the Donor
• Gift Declaration by the Donor
• Acceptance of Gift by the Do-nee
• Undertaking by the Donee
• Recent Passport Size 2 Pictures of the Donee
• Family Registration Certificate (FRC) by Birth
• CNIC of Donor, Donee, and two witnesses

Gift (Hiba) Property Transfer (Step-by-Step)

Here is the step-by-step process to transfer property through the gift (Hiba):

Step 1: Prepare Documents

First, visit a stamp vendor to prepare all the legally required documents for transfer.

For this purpose, stamp paper vendors require documents such as an Allotment letter, CNICs of the Donor, Donee and witnesses.

After preparing the legal papers, sign the register where your entries are on the list with the stamp vendor. With that, get legal stamp papers notarized and signed.

Step 2: Execute the Gift Deed

Second, bring these stamps and other original documents accompanied by two witnesses with you to the office of the society/project/Registrar.

After that, the donor and donee must sign the gift deed accompanied by two witnesses.

Step 3: Register the Gift Deed/Execute Transfer

Third, the key point here is to register the gift deed with the sub-registrar’s office provided the title change authority is the registrar. This step makes the transfer official and public.

In the case of a Society/Project, the property transfer process is done by the relevant office. The property transfer procedure consists of bio-metrics, group pictures, and witnesses in the presence of a transfer officer of that organization.

Here’s the thing to remember: You may be provided with a Registration/Application/Transfer Form. With that, fill that up and submit.

Step 4: Pay Taxes and Registration Fees

The fourth step is to deposit applicable taxes (if any) like CVT, Stamp duty and registration fees. The amount varies depending on the location and property value.

The most important thing to remember is to ask before starting the transfer process for the transfer fee and taxes applicable (if any). The transfer fee for a gift is usually half of the full fee fixed by a relevant authority or property size. Some charge a fixed amount for all kinds of transfers CDA charges only Rs.5000/- a flat fee for all.

On the other hand, some organizations charge only transfer fees (half/full) and are tax-free.

Step 5: Update Property Records

After registering, officials update the property records to show the new owner.

Note: The donor must be of sound mind, and the gift must be given voluntarily. The donee must accept the gift.

Pro-tip: You can save a lot of money if you ever need to transfer property title within the family (blood relatives) such as property transfer from:

• A father-to-son
• A mother to son
• A brother to sister and vice versa
• Wife to Husband and vice versa

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People often ask: how can a property be transferred from a father or mother to their son in Pakistan?

How do you transfer a property from parent to son/daughter?

The answer to the above question is if a mother or father is alive then you transfer property through gift.

If your parents have passed away, follow the inheritance procedure for the property transfer. It involves obtaining a legal heir certificate, transfer documents, and registering the transfer.

Likewise, if your father/mother is alive, your parent can gift their property to a son/daughter.

A question a donor or donee asks is:

What is the tax on hiba property in Pakistan? Or does Pakistan have a tax on gifting a property?

The short answer is “No”, in Pakistan, there is no tax on hiba (gifting) property. The country does not have a gift tax, so donors and donees are not required to pay any tax on the property.

Yet, a stamp duty applies provided you register your property with the Revenue Department.

FAQs (Property Transfer)