Pakistan’s total GDP comprises of approximately two percent of real estate and construction. In the span of a few years, Pakistan’s real estate industry has hit highs and lows whereas, throughout the world, real estate industry follows a stable growth rate which is five to eight percent annually.
Buying and selling property is different for every country according to their rule of law. In Pakistan, this process is very unsafe because of the higher ratio of fraud. A seller or buyer should inquire the property market before they go to a property dealer. People should proceed with the buying or selling process through a lawyer to avoid fraud or legal complications. It is not compulsory to involve a property advisor in selling or buying a property but it is always beneficial to get expert assistance in order to avoid hassles of running after buyers.
Agents usually work on one percent commission basis for one dealing. It may vary depending on the rate at which the deal is finalized. However, this agreement should be made prior to the dealing process to avoid any conflicts. Mostly, this particular commission is paid once the property is sold or bought and the full payment is made. There are a few cases, when the agent is paid some a certain percentage of the commission once the owner received the advance payment for the property.
There are a few important payments made to the National Bank of Pakistan or Government Treasury, and who will issue a receipt which needs to be submitted to the Government’s Stamp office. A stamp paper of the value is provided once the receipt is submitted. This particular stamp paper will be presented to the Registrar, for him to the change the property ownership.
We at BRB Properties, will help you choose the right property in the best value possible. We provide interest-free investment plan and easy installment facilities to allow you to plan a better future for your family.
Following are a few guidelines to help you understand the buying and selling process:
Preliminary Research:
It is advised to research about the property rates before selling the land so the agent cannot undervalue your property. You should always find an agent who you can trust, however if you are unable to you can always approach us.
Agent’s Commission:
The commission depends on situation where most of the times the commission is fixed on one percent while other times the percentage depends on the rate at which the deal is closed. Mostly the commission is paid once the deal is closed and the full payment is made. In some cases, a certain percentage is paid once the initial payment is done.
Token Money:
The token money is made by the payer to ensure that the property is now reserved. On doing the payment, the owner should provide a photocopy of the original property documents to the buyer for verification purposes.
Initial Deposit:
The initial amount is usually 25 percent of the total amount at which the property is sold. This amount is paid as soon as the documents are verified. This stage consists of signing a stamp paper which contains a set of conditions mutually decided. One of the conditions states the time period the full payment needs to be paid and the penalties which will be imposed if failed to meet the given date. For instance, if you change your mind about the property, by law you are bound to pay double the amount of the initial amount as penalty.
No-Demand Certificate (NDC):
NDC is a certificate for which you need to apply once the final payment date approaches. The transfer of the property can not be completed without this particular certificate. It can be acquired from the city’s land development authority or the private housing society.
This document contains information about applicable taxes on the buyer and seller. It also certifies that there are no dues left. Upon receiving the NDC, the seller needs to provide a copy to the buyer.
Taxes:
Transfer fee, stamp duty, CVT and TMA needs to be paid by the buyer before taking over the property. CGT needs to be paid by the sellers if the property is sold within two years of their purchasing date which is 1 percent of the property value for the tax filer and 2 percent for the non-filer. CGT is deposited to the housing society office or the land development authority.
Transfer Letter:
The buyer and seller both need to be present at the time of property transfer. On the day of the payment, the payment is made in the form of a pay order by the buyer after which the officer transfers the property and issues a letter containing the details of the transaction.
Once this process is completed, your property is sold and you have no longer any authority over it.