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 into this ultimate guide.

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

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What is property ownership transfer?

Property ownership transfer means changing who owns a property. This can also be called a change in title or Inteqal. It involves moving ownership from one person or group to another.

In other words, any means by which property ownership changes hands. These include the purchase of a property, an inheritance transfer to legal heirs, a transfer through a deed of gift, a 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 key point is that the steps and requirements can change depending on the housing project, location, and property type.

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. However, a plot file in Pakistan is a movable property because it operates within the system.

The question is, which law governs property transfer in Pakistan?

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

Transferring 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 you must 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 that proves the 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 or 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 is a fixed asset attached to the ground. This includes plots, houses, apartments, shops, and buildings. It cannot be moved without changing its 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 that 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 of 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.

A question people have and most often ask is what a sale deed is.

Sale Deed in Pakistan

A Sale Deed, also known as a Conveyance Deed, is a legal document that officially transfers property ownership from the seller to the buyer and confirms the change in ownership.

Remember?

Conveyance refers to legally transferring property ownership from the seller to the buyer.

Ensure all parties involved sign the sale deed duly attested by the Registrar.

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 between seller and buyer
• Original Title Deed (Proof of seller’s ownership) – In some cities (Karachi, etc.)
• Sale Deed (signed agreement between buyer and seller)

You may need extra documents to transfer land in Islamabad, Lahore, or Karachi. This also depends on the housing project or society involved:

• 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 that shows the property has no debts or claims against it.

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. Typically, it is fixed according to the property size you want to transfer.

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

The exact fees and taxes rate depends on the property’s location and type. The Federal Board of Revenue regulates 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-Filers 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-Filers

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 the budget for 2024.

It is important to note that overseas Pakistanis were previously considered filers by default, regardless of their 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, which means that beneficiaries and heirs do not have to pay any tax on the property.

What is an Inheritance Property Ownership Transfer?

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

When a person dies, their legal heirs receive their property, including cash, real estate, jewelry, vehicles, stocks, and bonds.

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

For that, we discuss real property, which means 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. That means the wife, son, daughter, mother, father, etc., get a share, but the amount varies.

A question people have is:

What is the daughter’s share in the father’s property in Islam?

In Pakistan, Islamic inheritance law states that a daughter’s share in her father’s property is half that of a son’s. Daughters receive half of the share allotted to sons.

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, two daughters, a husband, and a mother, her legal heirs.

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

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

The point to remember here is that you must get a 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, it came back to me. The court declared the 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 that 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 that you first 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 main point to understand is that both sources are valid. They can issue certificates according to the law. There is 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 a property transfer by inheritance cost you?

To process the change in the title of the 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 charges a transfer fee for all property types. This fee is Rs.5000/- (Five Thousand only) for transferring property to legal heirs.
• 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, per the SOPs of the Housing Society/project or Government department (CDA, Housing Foundation, JKCHS) procedure, the property is transferred to the legal heirs according to the share mentioned in the succession certificate/legal Heirship certificate.

The transferring authority divides the deceased’s 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 updating the owner’s name to the legal heirs (successors).

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

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

I have a question: How do you sell a minor’s property?

The answer to this question is that 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 that a court of law issues permission to sell only upon producing a “Guarantee by a guarantor holding property.”

It usually takes a week, 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 the Donee
2. Have possession of Property that Donor plans 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 favor 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):

• 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 and 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. Then, get the legal stamp papers notarized and signed.

Step 2: Execute the Gift Deed

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

After that, the donor and donee must sign the deed of gift, 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.

The property transfer process is done by the relevant office in the case of a society or project. The procedure consists of biometrics, group pictures, and witnesses in the presence of a transfer officer of that organization.

Remember: You may receive a Registration/Application/Transfer Form. Please fill it out and submit it.

Step 4: Pay Taxes and Registration Fees

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

The key point is to inquire about transfer fees and taxes before beginning the transfer process. 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 money when transferring property titles within the family, such as between parents and children or siblings. Using a gift deed may help reduce transfer taxes. Always consult a legal professional for guidance.

• 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 property can be transferred from a father or mother to their son in Pakistan.

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

The answer to the above question is that if a mother or father is alive, you transfer property through a 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 or mother is alive, your parents can gift their property to a son or daughter.

A question a donor or donee asks is:

What is the tax on hiba property in Pakistan? Does Pakistan have a tax on gifting 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)

What is a gift Deed or Declaration?

A gift deed is a legal document that transfers property ownership from the donor (the person giving the gift) to the donee (the person receiving the gift). The deed should include the property details, the donor’s and donee’s names, and their signatures.