The real estate sector is booming at large extent in Pakistan. Overall, it covers 2% of GDP of Pakistan. Being an important sector of Pakistan, several by-laws & regulations are governing it to minimize the risk.
Property ownership, titles, sales, buying, leasing & transactions mainly governed by realty laws. Furthermore, various other provincial, municipal regulations & laws are also looking after property related matters in Pakistan. These regulations are overall deterring the fraud & scams. So, if you are new to real estate sector, have a look on this well-researched information.
Transfer of Property Act 1882
Transfer of Property Act 1882 deals with the transfer of property matters. It extensively throws light on
- what can be transferred
- who can transfer property
- operation of transfer
- restrictions on transfer
Further, it stated that:
- “Property means (i) the thing itself, or (II) some or all the rights in a thing.”
- “Transfer of property means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more other living persons”
- “Every person competent to contract & entitled to transferable property, or authorized to dispose of transferable property not his own, is competent to transfer such property either wholly or in part.”
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Registration Act 1908
This act deals with the registration of the Real estate. It is comprised of 15 sections. An extensive law that overall deals with registration matters in Pakistan. In addition, it also enlightens the general public about the necessary details of registration process. In other words, it covers the process wholly leaving no space for ambiguity.
Registration Act 1908 originally formulated to confirm the registration of the real estate. In total, this act has fifteen sections. In Registration Act 1908 one can find all the necessary details about:
- Establishment of registration
- Place for registration relating to land
- Documents necessary for registration
- Power of attorney
- Wills if any
Stamp Act 1899
This act came into force on July 1, 1899. This act is applicable across the country. Its mainly used for legalizing the documentation of individuals. This act actually strengthens & makes the buying & selling of property legal & risk-free. Moreover, it is one of the source of government’s income & revenue generation.
According to stamp Act 1899 “the buyers & sellers are bound to pay a certain amount to present the government in lieu of the stamp paper”. Stamp paper is used in making of legal agreements & contracts in Real Estate sector.
It is relevant when an individual passes his right to others in term of partnership deed, sale deed, gift deed etc. Public officers made bound to reject any non stamped document. The overall cost of stamp paper varies according to nature of contracts and as per government’s orders.
Land revenue Act 1967
Land revenue act deals with the land & revenue matters in Pakistan. It basically describes the relationship between landowners & government. Land revenue described as a share of the government receives from the landlord. Government can receive one-fourth of total production excluding the expenses & costs.
To sum up, it offers complete framework, hierarchy of land & revenue. It provides full-fledged principles that guides the collection partition & boundary marking of land, arbitration & survey conduction as well.
In conclusion, these are the laws that certainly impact the buying & selling of property in Pakistan. So one dealing in real estate sector must have basic know how of these laws. In order to save himself/herself from any inconvenience & fraud.