NOW TRENDING: RIGHTS OF GROWN CHILDREN... SALE OF PROPERTY IN PAKI... POLLUTION MAFIA IN PAKIS...

PPRA RULES QUERY ON DIRE...

JOSH AND MAK INTERNATIONAL

HOME LEGAL SERVICES OUR REPORTED JUDGEMENTS

OIL, GAS, MINING AND ENERGY LAW OUR PEOPLE PUBLICATIONS BLOG

FAQS GET A LEGAL OPINION, NOW! LAW FIRMS IN PAKISTAN

BUYING PROPERTY IN
PAKISTAN: A LEGAL GUIDE FOR
OVERSEAS PAKISTANIS AND
FOREIGNERS
The Josh and Mak Team | August 15, 2016 | Best Lawyers In Pakistan, Daily
Legal Advice Series, Law Firms In Islamabad, Law Firms In Pakistan | No
Comments

This Guide seeks to enable Local and Overseas Pakistanis,

as well as Foreigners wishing to invest/buy property in
Pakistan.Our top legal team will be more than happy to give
you legal opinion or help you carry out due diligence for any
property you wish to purchase in Pakistan.Our due diligence
and legal opinion fees are reasonable and affordable and can help
you avoid any fraudulent sellers.

While this brief is a guide to the purchase of real estate within Pakistan it
does not take a legal stance and all guidelines herein should be
undertaken under the guidance of your lawyer or attorney. It must be
mentioned that as per our experience in Pakistan, as a well-known
Legal500 Law Firm, we have seen that many Overseas Pakistanis, have
suffered badly in past by being cheated on relating to property issues. This
has been contributed to several factors but not getting the best legal Translate »
advice or trying to save money by cutting corners and scrimping on the
legalities are major players contributing to such losses. CONTACT OUR
LEADING PARTNERS
The following are very basic guidelines for Overseas Pakistanis to look at
TODAY FOR PREMIUM
before even considering purchasing a property. LEGAL ADVICE.
Avoid any company, which claims to come and visit your country of work Barrister Aemen Zulfikar Maluka
or residency. While they sell this at a surplus the money will start racking Pir Abdul Wahid (Advocate High
Court)
up before you have even looked at the particulars of a property. You will
Zulfikar Khalid Maluka (Advocate
be much better off dealing directly via electronic means with a company in
Supreme court of Pakistan)
the area where you want to buy.
Contact : +92-300-5075993
Don’t even consider those shiny property sales/housing society Ads, which +92-51-8442922
are advertised on  the TV and Facebook every other day or so. The cost of
Josh and Mak International. GF-13,
those ads is added onto the price of the properties, which are likely to be
Tower A, The Centaurus, Plot 1
substandard at best, and also likely to go into litigation later due to lack of Jinnah Avenue, F-8
permits or clearance by the government, Islamabad, Pakistan, 44000

In short, any Overseas Pakistani or Foreigner  intending to pay any

attention to the new, glamorous housing society advertisements, should
FOLLOW US!
be wary that these commercials have been purpose built to relieve
overseas buyers of their hard earned cash. Getting tangled up with these
builders and societies and their shenanigans can be a nightmare for those
who live in Pakistan, never mind those who live overseas or are foreigners.
Our Advice: Please stick to an established property with a titular history for
LIKE US ON FACEBOOK!
a good price in a good area. Those ads on telly are the perfect time to put
the kettle on, and honestly that’s all they are good for! if you have been
approached by any such marketers, please contact a lawyer to conduct CALL US ON SKYPE
proper due diligence of these properties and so-called societies.
Call Us Now!

PURCHASING FROM THE OWNER

Call Us on Skype!
While this is the advised avenue to take for an Overseas Pakistani or
Foreigner buying a property in Pakistan it is far from perfect unless you
take the precautionary measures that apply to residents. Do your HOW CAN WE HELP
homework thoroughly as mentioned right at the very beginning of this YOU TODAY?
brief. Only by going back through the history thoroughly do you know that Advice on Energy Law in Pakistan
you are buying a property that the vendor is actually entitled to sell. Company registration in Pakistan
Registering a Foreign Branch Office
If you don’t intend to travel to Pakistan to take care of the sale ensure that in Pakistan
you give power of attorney to somebody you trust and not a company who Advice on Export Regulations in
claims to be working on your behalf. Selling a house that is essentially a Pakistan
blank file to numerous people at the same time is one of the best-known Advice on NEPRA Tariffs and Power
Sector Laws in Pakistan
scams in Pakistani real estate. Do not be the next person to fall for this
Advice on Bail Applications in
con. You should place two adverts in prominent newspapers stating your Pakistan
intention to buy whichever property has caught your eye. One should be Advice on Promotion Matters in
Pakistan
in English and the other Urdu. This is effectively a public notice stating
Advice on Banking and Shariah
your intention of XXX property from XXX vendor and letting everyone know
Compliance in Pakistan
that if they have any claim, objection, attachment, lien, interest etc. they
Your Representation in all types of
must inform either you, the concerned authority or your lawyer within 7 Civil Litigation in Pakistan
days. This can save you from many a headache down the line should the Your Defence and Prosecution in all
vendor have also promised the property to somebody else. types of Criminal Litigation in
Pakistan
Even if the house you intend purchasing belongs to a friend or relative Recovery of Money, Bad Debts,
always protect yourself by inviting the public objections we have Loans and Mesne Profits
mentioned above. Never think that because you are buying from Succession Certificates in Pakistan
somebody you know, and probably trust, that there is guaranteed to be Getting Urgent Stay Orders and
Injunctions in Pakistan
nothing awry.
Writ Petitions before the High
The Importance of Power of Attorney Courts in Pakistan
International Marriages in Pakistan
It is not whether or not you should authorize power of attorney that is at Dissolution of Marriages, Divorce
question here, rather than who you give it to. It is amazing how often that and Khula in Pakistan
good friend can turn into a wolf when there is money involved. A major International Divorces in Pakistan
Registration of Marriages and
issue is that in Pakistan there are so many ready made, one size fits all
Divorces in Pakistan
power of attorney texts that people seem to think applies to all scenarios
Drafting of Divorce Agreements in
and cover their backs; they don’t. Granted, there are certain items, which Pakistan
need to be included in there by law, but on the whole every power of Divorce Effectiveness Certificate in
attorney should be unique and relevant to the reason why you are giving it Pakistan
in the first place. Do not sign anything until the text and its contents have Court Marriage in Pakistan in
been fully checked over by your lawyer. At Josh & Mak International we Pakistan
Online or Telephonic Marriage in
have the experience and expertise to oversee this entire process to ensure
Pakistan
you have the cover and protection you need. Our clients are always our
Settlement of Matrimonial Issues in
number one priority and our international standing among overseas Pakistan
Pakistanis is second to none. Drafting of Family Settlements in
Pakistan
The Services We Offer
Recovery of Abducted Children in
Pakistan
These services apply to all clients, whether you live in Pakistan or not, as
Child Custody and Visitation in
well as Foreign Nationals. Whether you are looking to purchase a property
Pakistan
or own one that is standing empty, not being looked after properly or is Guardianship of Minors Children in
currently occupied by an unsavoury tenant give us a call today to see how Pakistan
we can help you. Adoption of Children in Pakistan in
Pakistan
We leave no stone unturned to find the very best tenants for your Legitimacy of Children in Pakistan
in Pakistan
property. This includes ads in leading newspapers and on reputable
Sale, Purchase and Transfer of
websites, liaising with local agents etc. to ensure your property is
Property in Pakistan
occupied by the calibre of tenant you would choose for yourself. Legal Management of Property
Matters in Pakistan
 We carry out the reference and background checks including their Recovery of Possession of
record relating to previous rentals Properties in Pakistan
Protection of Intellectual Property
The preparation of all legal documents pertaining to both purchases
in Pakistan
and rentals
Dealing with Cyber-Crimes in
The issuing of eviction notices to tenants should they be needed and Pakistan
the filing of court petitions for evictions Passport and Immigration Offences
Taking on the full responsibilities should you choose us as your power in Pakistan
of attorney allowing you to rest easy knowing that we will always be Excise and Customs Matters in
working both for you and with you Pakistan
Import and Export Matters in
The transfer, sale or purchase of properties in Pakistan
Pakistan
The recovery of properties in terms of possession
Rent Matters of Properties in
Pursuing property litigation within Pakistan where the title and Pakistan
occupancy comes into dispute. Business Set-Up Advice in Pakistan
Registration of Company and
Partnership in Pakistan
Legal Management of Business in
The safest way to purchase or sell a property in Pakistan Pakistan
Drafting of Legal Documents in
In an ideal world everyone would engage the services of a lawyer in order
Pakistan
to buy or sell property. However, way too many Pakistanis try to save Translation of Documents in
themselves money by doing direct deals without getting all the necessary Pakistan
background checks done. Invariably, they will find themselves caught up in Research about Pakistani Laws in
legal complications and instances of fraud further down the line, which Pakistan
will cost them so much more in the long run to put right. The ONLY way to Legal Advice and Opinion about
Pakistani Laws and Procedure
buy or sell property in Pakistan, which allows you to sleep easy at night, is
to do so via a lawyer. Trying to save money by avoiding this step is asking
for trouble and could see you end up being both out of pocket and
without a property.

The Josh and Mak Team routinely advises its  clientele on the sale,
purchase or rental of all residential, commercial and agricultural
properties. We will take care of the entire verification process as well as
the registration of all title documents, the procurement of ‘Farad’ revenue
documents and sort out the Intiqal in the revenues records.

On the other side of the coin we will also initiate fast legal proceedings
against those offenders who take part in the illegal possession of property,
land grabbing and the transfer of property which has taken place by
fraudulent means.

Pakistani Real Estate Laws

The following overview explains the processes and procedures of Pakistan

real estate including Gift, leasing, mortgages, taxation on gains from
selling Pakistan properties, real estate taxation and the setting up of real
estate trusts in the country. These notes are for general guidance only and
do not claim to be legally binding. Only by signing a contract with a lawyer
do you cover yourself from all eventualities.

The sales of real estate within Pakistan will usually take place using the
title document called a Sales Deed. The only exception to this is such cases
as the purchase of real estate in DHA, Defence Housing Authority, or
within a housing society, which doesn’t execute a sales deed for
transferring a real estate title. Many people often, prior to the execution of
a sales deed, choose to execute the agreement to sell. However, these
agreements do not transfer the title of a property in favour of a vendee,
instead they create a right in the favour of the vendee should the vendor
refuse to honour the conditions and terms contained within that
agreement and allow them to seek a special enforcement of the sale
agreement. The title on an immovable property will only be transferred
once the title document or sales deed has been executed. The sales deed
will be affixed with the requisite stamp duty and must also be registered
with the relevant authority. After the sales deed has been registered the
mutation of the sale must be entered into the relevant register, which is
maintained and kept by the Patwari.

Leasing/Renting out of Real Estate in Pakistan

Point of view of the landlord: Landlords must ensure that a lease on an

immovable property is fully executed in writing. Should the rental period
of the immovable property be less than one year no compulsory
registration is required. Registration is a must for any rental periods of
over one year.Should the tenant refuse to pay the rent, or break any of the
stipulated terms of the tenancy, the landlord is within their rights to
terminate the lease. If that tenant refuses to leave the property the
landlord can file an eviction petition with the relevant authority.

Point of View of the Tenant: The tenant must make sure that they always
make prompt rent payments via the method agreed in the tenancy
agreement and receive a receipt from the landlord. Should the tenant
unjustifiably or unlawfully attempt to evict a tenant that tenant can file a
petition as well as availing several other legal remedies his lawyer will
advise upon.

Pakistani Real Estate ‘Gifts’/Gifts in Muhammadan Law : Special Laws

that Apply 

Any real estate gift in Pakistan has to be made in writing. However, the
exception to this general rule is a Muhammaden gift, which is the oral gift
of a property. Even though this is a legally accepted act oral gifts are not
recommended, as they are almost impossible to prove if the other party
denies it. Where a written gift deed has been executed it must be
registered and affixed with the relevant stamp duty.

In the case of a Muhammaden oral gift, this will take effect if all three of
these conditions have been satisfied;

The Declaration of the gift

Acceptance of the gift by the recipient during the givers lifetime

The giver transfers legal possession of the property to the recipient

When these have all been satisfied the fact of gift is deemed to have been
established.Need more information ? Contact us now +92-51-8442922

Real Estate Mortgages in Pakistan Need more information ? Contact

us now +92-51-8442922

Legal Mortgages Need more information ? Contact us now +92-51-

8442922

A legal mortgage pertaining to an immovable property can be created

once the mortgage deed has been executed. The mortgage deed must be
affixed with the appropriate stamp duty as well as being registered with
the sub-registrar. Need more guidance ? Contact us now +92-51-8442922

Equitable Mortgages Need more information ? Contact us now +92-

51-8442922

Equitable mortgages pertaining to immovable properties are created by

the depositing such original title documents with the mortgagor as sales
deeds, allotment letters etc. As registration is not a requirement the
general practice is to have a lien marked in relation to the mortgage.Need
more information ? Contact us now +92-51-8442922

Real Estate Taxes in Pakistan Need more information ? Contact us

now +92-51-8442922

The taxation on gains made from Pakistani real estate

There is no legislation included in the constitution relating to capital gains

taxation from the federal government’s purview. The laws relating to
income ta have been harmonised with these provisions by excluding
immovable properties from the very definition of capital assets, the gains
of which are liable to taxation.
However, a profit on certain transactions concerning immovable property
is liable to taxation under the laws of income tax. These include the
disposal of a property that has been acquired as stock within a trade and
the intent to make a commercial profit. However, such gains realised on
the disposal of an immovable property which has been transferred due to
gift, family inheritance, being bereft of any commercial motives of if the
property is held as a capital asset of a business are all exempt.

Need more information ? Contact us now +92-51-8442922

Capital Valued Tax on Pakistan Transactions Related To Real Estate

Need more information ? Contact us now +92-51-8442922

Capital value tax stands at 2% of the recorded value, which has been
levied in the Finance Act of 2006. This applies to urban areas where
residential properties exceed one kanal in area and to commercial
properties where no thresholds exist relating to the property’s size or the
area of land it stands on. When the property’s value has not been
recorded however, the capital valued tax is payable at the rate of Rs. 50
per square yard. All transfers who fall under the scope of gift, purchase,
surrender, exchange, power of attorney or relinquishing of rights are
subject to capital value tax. However, those transactions that take place
between grandparents, parent, siblings and spouses through inheritance
and gift are excluded from the purview.

Need more information ? Contact us now +92-51-8442922 

Establishing Real Estate Investment Trusts in Pakistan

Real estate investment trusts are relatively recent concepts within Pakistan
and were introduced as incentives for investing in Pakistani real estate.
Any income from such a trust is exempt from tax as long as nothing less
that 90% of its profits is distributed among the holders of the units.

Need more information ? Contact us now +92-51-8442922

FAQ’s Relating to Pakistani Real Estate

We have brought together all the most frequently asked questions relating
to real estate in Pakistan to condense this piece and make it easier to
understand.Need more information ? Contact us now +92-51-8442922

What is an Aks-Shajra?

Aks-Shajra is the image of a specific piece of land or specific khasra

number from the plan or map of a village or estate and is used to define
boundaries.
What is Fard Malkiat?

Fard Malkiat also referred to as a Record of Rights, Jama Bandi, Misal

Haquiat and Register Haqdaran-e-Zameen and is maintained for the
recording of determining the various types of rights which exist an
immovable property.

What is a Mutation (Intiqal)?

The mutation is the document which contains an order from a revenue

officer who must possess at least a grade III Assistant Collector
qualification, and deals with records of rights that are to be changed,
altered or mutated within the revenue records.

What is meant by the Tattima Registry?

Tattima simple means “supplementary” and therefore the Tattima Registry

is the name given to the supplementary sale deed in a specified area.

What is a Khasra?

A Khasra is a piece of land that has both a specific number and

measurements

What is Khasra Garrdwari?

Kharsa Gardwari is a register which is maintained for records of

cultivation/possession.

What a Survey?

A survey is a map or drawing which shows a property’s precise legal

boundaries, the location of any improvements, rights of way,
encroachments, easements and any other physical features of the
property.

Is a mutation a title document?

No.

What is the name of the document that creates the title in an

immovable property?

The Register Sale Deed, Registry /Baye-Nama, is the document, that

creates a title in an immovable property.
What is meant by a Sale Deed or Conveyance Deed?

A Sale Deed or Conveyance Deed is the deed document used to convey a

property’s titles from the seller to the buyer. This deed document helps
you to ascertain whether or not the property you are buying stands on
land that belongs to a society, builder, development authority etc.

Where do I get the title deeds or documents for my house?

These can be obtained from the department or office via which the title of
the property was transferred or conferred.

Which laws will generally deal with Pakistani real estate?

There are many laws dealing with Pakistani real estate including The
Transfer of Property Act, 1882, Land Revenue Act, 1967, Stamp Act, 1899
and Registration Act, 1908. Your lawyer will advise on all the laws relating
to real estate in Pakistan.

What safety precautions should I undertake before I buy a property

or any other kind of real estate in Pakistan?

Before you buy any kind of property in Pakistan a thorough investigation

should take place into the title of the seller of that real estate. The general
practice is to do a probe into not only the current seller but also any
previous owners dating back to a period of around 20 years. The original
title document that favours the vendor must be obtained as well as the
other relevant documents such as a mutation in favour of the vendor, a
new Fard, the aks shajra and either a non-encumbrance certificate or no-
objection certificate whichever is relevant to the property in question. If
the vendor is selling a property in their capacity as the owners lawyers you
must ensure that the power of attorney has been duly registered with the
sub-registrar. Anyone found to be holding a fabricated or forged power of
attorney will not be able to transfer the valid title of any immovable
property to any third party.

The property I want to buy is registered in the name of a company,

what documents should I be inspecting?

Before purchasing any property which is registered to a company you

need to verify with the Registrar of Companies at the Securities &
Exchange Commission of Pakistan that this property is not currently
mortgaged nor is it being used as security against any loan. If it is either of
this it cannot be considered to be a hold property. Additionally, you should
check the memorandum of association to make sure who is authorised to
act on the company’s behalf when it comes to selling that property. If a
resolution is required the same must be both passed and verified and you
should also inspect the original title documents in possession of the selling
company.

Can residential properties be used as office space by corporate

bodies?Need more information ? Contact us now +92-51-8442922

While it is illegal to run a commercial business from a residential property

certain service based industries can operate out of residential areas.

Can a foreigner buy a property in Pakistan?Need more information ?

Contact us now +92-51-8442922

Yes. Following the completion of the legal formalities foreigners are

allowed to by property within Pakistan.

What are the inheritance laws which apply in Pakistan?Need more

information ? Contact us now +92-51-8442922

The Pakistani inheritance laws are dependent on religious affinities. For

example, Muslims have their own personal laws as do other
religions.Need more information ? Contact us now +92-51-8442922

Does the transfer of every immovable property need to be registered

in Pakistan?Need more information ? Contact us now +92-51-8442922

Transfers of immovable property’s with a value of Rs 100/- and up can only

be made with a registered sales deed.

Can overseas Pakistanis buy property in the country without visiting?

Need more information ? Contact us now +92-51-8442922

Yes they can.

What documents are required to legally own a property?Need more

information ? Contact us now +92-51-8442922

Those deeds with verify the transfer in your favour such as sales deeds,
allotment letters and sale certificates.

How do I actually own a property in Pakistan?Need more information

? Contact us now +92-51-8442922

You become the owner of a property by purchasing it from a private

person, builder, by allotment or purchasing it from a public development
authority. Another way to become a property owner is to become a
member of a co-operative housing society.

What is a Power of Attorney in Pakistan?Need more information ?

Contact us now +92-51-8442922

A Power of Attorney in Pakistan effectively gives an agent the power to

execute deeds and acts for, and on behalf of the principal who is the only
person who can hand this power over to a third party. You can also give
somebody the power or attorney to appear before an authority, tribunal
or court on your behalf as well as to buy, sell or maintain real estate. If the
power of attorney is given relating to several acts within a number of
transactions it is called the General Power of Attorney, which must be
registered. If, however, it is given for only one particular act with one
transaction it is a Special Power of Attorney and does not need to be
registered.

Can the person who hold power of attorney transfer property in their
own name? Need more information ? Contact us now +92-51-8442922

No they cannot. Whoever holds power of attorney is bound by a fiduciary

duty to act in your best interests and carry out whatever duties you would
do for yourself if you could. Third parties will assume they are acting on
your behalf and you need to make sure they are doing this to the best of
their ability.

I’ve changed my mind, can I now revoke my power of attorney?Need

more information ? Contact us now +92-51-8442922

Yes you can.

On what grounds would a power of attorney be cancelled? Need

more information ? Contact us now +92-51-8442922

Automatic cancellation occurs if the executor dies or if the party holding

the power cancels it.

So my Power of Attorney won’t be effective after my death?Need

more information ? Contact us now +92-51-8442922

No it ends when you die.

I want to buy an apartment in a block that is still under construction,

what papers do I need to check? Need more information ? Contact us
now +92-51-8442922
Check the approved plans of the building and the number of floors to
ensure that the floor you want to buy has been approved. Also check if the
land on which the building is being constructed belongs to the builder or if
a legal agreement is in place with the owner. If the latter is the case check
the land ownership title. Also make sure that the building bylaws for that
area is being adhered to and that the building is from any violations from
front or side setbacks, height etc. Scrutinise the specification within the
agreement to sell to ensure they are same as those listed in the sales
brochure. If the builder on one of the companies incorporated within the
Securities & Exchange Commission of Pakistan you should check that this
company is permitted to deal with the sale and purchase of Pakistani real
estate.

Can I sell my immovable property be sold while it is still in mortgage?

Need more information ? Contact us now +92-51-8442922

No, you cannot sell immovable property, which are mortgaged.

What are the important documents I should check before I buy a

property?Need more information ? Contact us now +92-51-8442922

Check the approved layout plans, the approved building plans, the
ownership documents, all the deeds of title which related to property you
want to buy, examine all the deeds, ascertain a survey number, check for
any previous loans and encumbrances secured on the property, request
that the seller obtains, if necessary, sanction, consent permission, no
objection certificates from relevant authorities, bills, tax receipts,
measures of land etc. etc.

What is stamp duty and is the buyer or the seller liable for it? Need
more information ? Contact us now +92-51-8442922

Stamp duty is a tax/fee, which the government levies on the transfer of a

property and it must be paid on time and in full. Stamp paid documents
are considered to be true and legal documents. Unless an agreement has
been made to the contrary the responsibility of paying stamp duty falls on
the shoulders of the buyer.

Why is an approved building plan necessary and why do I need one?

Need more information ? Contact us now +92-51-8442922
Raising any construction without having the building plans approved is a
direct violation of the Building Control Authority’s rules and can lead to
the construction having to be demolished. It is therefore common sense
that before the first brick is laid you has the full and mandatory
construction approval in place.

Who maintains land records In Pakistan?Need more information ?

Contact us now +92-51-8442922

The land records in Pakistan land records are maintained and kept by the
districts administration revenue department who decided the boundaries
and the ownership of property or land within its area.

I co-own a property, can I sell it? Need more information ? Contact us

now +92-51-8442922

Yes and no as you can only sell your share in that property and if no
specific boundaries have been set you will need the consent of your co-
owners.

Is a sale deed drafted by a Wasiqa Nawees/Arzi Nawees reliable?

Need more information ? Contact us now +92-51-8442922

No. Sales deeds have to be drafted by lawyers who have knowledge of the
relevant laws pertaining to the transfer of a property.

What are 3 essentials steps of Gift?Need more information ? Contact

us now +92-51-8442922

The offer by the owner/donor 2. Acceptance by the recipient (to whom

the gift is being offered) 3. Delivery of the possession.

Can a gift be revoked?Need more information ? Contact us now +92-

51-8442922

Yes, a gift can be revoked with the exception of one that has been made in
favour of a person who falls into a prohibited category such as one who is
married to somebody who’s whereabouts are unknown.

What distinguishes a gift from an inheritance?Need more

information ? Contact us now +92-51-8442922

Gift are always made during the lifetime of the donor and become
effective from the moment it is completed where inheritance only takes
place following the death of the donor. Another distinguishing feature is
when an owner of a property makes a gift to it to one legal heir but as an
inheritance it would have to be divided between all heirs.
Can a foreigner purchase property in Pakistan? There are quite a few
considerations involved as discussed below.Need more information ?
Contact us now +92-51-8442922

Due to its estimated shortfall of 270,000 units in housing construction, the

real estate market in Pakistan would appear ripe for foreign investors. All
is not as it seems however as the problems which face the Pakistan
property sector include very low yields on rentals, complex tenancy laws,
the absence of title on many properties and high taxes. Since 2006
Pakistan’s SECP, Securities & Exchange Commission, has been considering
adopting a regulatory framework relating to real estate investment trusts.

The Securities and Exchange Commission of Pakistan (SECP) has gone

public with their draft recommendations for this framework and have
embarked on what they describe as a consultative exercise with the
property sector but as of now no year/ target date has been set for the
introduction of REIT. Furthermore, these draft recommendations shed no
light on such matter as foreign and non-residents holding REIT, nor the
repatriation of any dividends.

According to SECP’s own ‘Promoters Guide’ foreign corporations are

allowed to take a controlling interest in the infrastructure and in
investments in industrial zones but the investment regulations for
construction and housing demand that the title of a property be lodged
with a local, incorporated company. Whether or not this entity is allowed
to be a wholly owned subsidiary of a company, which is incorporated
overseas in, not made clear. The Karachi, Lahore and Islamabad Company
registration office will provide advice on such incorporation for all foreign
owned entities.

An alternative, and increasingly popular way to invest in real estate in

Pakistan is by buying shares in a reputable company who are developing
residential areas near to Islamabad and other main cities. Although
foreigners who work and live in Pakistan are allowed to rent or buy
properties the government requires them to undertake certain legal
formalities with both the Trade Development Authority of Pakistan and the
board of investment. Foreigners who intend to buy or rent a property in
Pakistan are required to submit certain documents for approval to the
Ministry of Interior in order to documents in order to get an NOC from the
ministry of interior, including the ID information.

Afghan nationals are not currently being allowed to purchase property in

Pakistan due to security concerns. There are also problems for certain
other nationalities in getting clearance from the Ministry of Interior. In our
experience UAE and US/UK nationals find it easier to get clearance from
the Ministry of Interior in Pakistan.

If you need more information in this regard, please call +92-300-5075993

Disclaimer; please bear in mind that the information included in this

article is    for information purposes only and should be read as legal
advice. Contact Josh & Mak International now for comprehensive help and
legal advice relating to any aspect of real estate in Pakistan

Tags: Legal Advice in Pakistan, Legal Advice Law Firm in Pakistan, Legal
Consultation in Pakistan, Purchase of Real Estate and Property in
Pakistan, Purchase of Real Estate in Pakistan, Real Estate Legal Advice in
Pakistan, Registration of Property in Pakistan, Sale and Purchase of
Property, Sale and Purchase of Property in Pakistan by Overseas
Pakistanis, Sale and Purchase of Property of Property by Foreigners in
Pakistan, Sale and Purchase of Property. Legal Advice in Pakistan, Sale
and Purchase of Real Estate in Pakistan, Transfer of Property Legal Advice
in Pakistan, Verification of Title Deeds in Pakistan

RELATED POSTS
UPDATED PTA PPRA RULES QUERY ON
(PAKISTAN ACCEPTANCE OF
BIDS/NEGOTIATIONS
TELECOMMUNICATIONS No Comments | Apr 14, 2017
AUTHORITY LAWS, RULES,
GUIDELINES AND DRAFT
REGULATIONS
No Comments | Aug 25, 2015

PPRA RULES QUERY ON NON-PROFIT COMPANY

ACCEPTANCE OF REGISTRATION IN
BIDS/NEGOTIATIONS PAKISTAN
No Comments | May 10, 2017 No Comments | Aug 10, 2016