All About Property Mutation in Pakistan
Property Mutation, Once you have completed all the formalities of a real estate transaction, the next and final step is to register the said property under your name to make it official in government records. This is known as the mutation of a property. It refers to the entire process in which the title of ownership of a property is transferred to another person. Simply put, it is the title deed (also called a conveyance deed) needed to have the property under your name.
Feeta.pk has compiled all the basic details that you need to know regarding the property mutation process.
When do you need a mutation certificate?
- When you buy a property
- When you inherit a property
- When you receive a property as a gift
- When you purchase a property through a power of attorney
How do you apply for a mutation certificate?
Since obtaining the mutation certificate is not a legal obligation, many new property owners postpone the process. However, the mutation process should ideally be started as soon as possible once the property has changed hands – at least within 3-6 months of the land purchase. Without it, the buyer may risk facing issues in obtaining complete legal ownership of the property in question.
The process just comprises a few, simple steps:
- Visit the land administrator’s office in the concerned area (where the property is located) and submit the required documents. These may also vary according to circumstances. For example, if this is a mutation of the property after the owner’s death, applicants would have to submit a death certificate, succession certificate, etc. You can cross-check on the government website or call on the helpline for further information, but you would still have to visit the municipal body to hand in the papers.
- Both the seller and buyer have to appear with two witnesses and the sub-registrar will hear their verbal agreement for trading the property.
- This will be recorded in the Inteqal (Mutation) Register, and you will be handed a receipt.
- Afterward, you would have to submit a nominal process fee to the National Bank of Pakistan (this will be just a one-time charge).
- There will be a physical verification of the site by the relevant authorities.
- The municipal body may take up to a month to update the record, after which they would issue the mutation certificate.
Why is it important to get a mutation certificate?
Even though it is not a legally binding document, the mutation certificate is still necessary for several reasons:
- It serves as additional proof of ownership.
- You will be able to record the property under your name in the municipal local body.
- It can also be required when applying for utilities, such as electricity and water services.
- It may also serve as a tax record.
- You would need it if you want to sell or transfer your property to someone else in the future. If you are unable to produce a mutation certificate before potential buyers for verifying the chain of ownership, you may risk the sale of your asset.
- In case of land dispute, corruption or hostile takeovers, the mutation certificate can help challenge false claims in court.
- All immovable assets (individual homes, apartments, land, etc.) are subject to property tax payment, and mutation is just a way to ensure that. The certificate is required by the government to fix the property tax liability and other levies on the rightful owner.
- It can also help you correct any errors in the records in case there is an unauthorized transaction.
What is the difference between registration and mutation?
There is some ambiguity over the difference between property registration and mutation since the purpose of both seems similar. Property registration refers to the process in which you claim legal rights on a property by registering the sale under your name. The process of mutation, on the other hand, is the buyer’s responsibility and can only be initiated once the property registration has been executed.
|Property Registration||Property Mutation|
|Also called a baye-nama||Also called inteqal|
|Mandatory process after transfer of property||Not a legally required process after the transfer of property|
|Legalizes the actual sale of a property||Transfers ownership of the property|
|A sale deed||Does not require a sale to take place; it applies to inherited and gifted properties too|
While the key differences between the two are just a few, it is still important to know the significance of each to avoid any potential problems or confusion in the future if you choose to resell the property. This is why it is advised to acquire both in the beginning.
If you are looking for more information on the real estate processes in Pakistan, you can visit this link.
The Ultimate Guide to Selling Property in Pakistan
Selling and Transferring Property in Pakistan is a regular occurrence in the country, where hundreds and thousands of people sell and transfer property. For those familiar with the process, the transferring procedure might just be a piece of cake. But for people who are new and confused about where to start, you’ve come to the right place.
Before we jump into the tricky aspect of this process, let’s clear the air about what exactly transferring property means and why it is an essential aspect of buying and selling property in Pakistan.
What do we mean by transferring property?
As per the law, any individual who owns a property should have the land or property verified under their name. The land should be under the designated ownership; only then can they sell the property to themselves. This is the basic requirement of selling a property.
In Pakistan, the transfer of any property generally consists of the owner transferring the title of the land from one person to the other. Transferring property can occur in multiple ways for various reasons, such as a mortgage, gift deed, inheritance, lease, exchange, etc. All such explanations are why transferring is an essential legal procedure.
Who is eligible to transfer property?
All individuals who can sign a contract are authorized to transfer property ownership in Pakistan. According to the Contract Act 1872, a contract is claimed as a binding agreement between two parties, meaning that it is a legally binding document for any sale and purchase of land in the country.
There are a few exceptions for people who are not eligible to transfer a property:
- Minor: Anyone under the age of 18 is a minor and therefore cannot carry out the process.
- Unstable Individuals: Someone who cannot understand the consequences of their actions, for instance, that of a mentally ill person. Other reasons can be permanent or temporary physical disability such as a Coma etc.
- Legally Barred Individuals: Someone barred from signing contracts cannot transfer property in Pakistan.
What are the steps involved in transferring and Selling a property in Pakistan?
The transferring process, although time-taking, is a simple and easy process with not many legal proceedings. We’ll break down the process into different steps to help you better understand.
This is the very first step of selling after you’ve successfully secured a client. This involves the buyer giving approximately 1 / 4th of the total price. If not the exact percentage, there is an agreed amount between the buyer and the seller to indicate an agreement from both sides of the party.
The Token (Bayaana) is given by the buyer with a series of negotiations and based on a contract, in which all details are specified. After this, the seller holds negotiations with any other potential buyers.
Usually, a specified period is set and written in the contract for the full amount to be paid. If the sale falls through, the token is returned. But if the full amount is not paid in the specified time, the seller has no obligation to return the token, even if the sale doesn’t go through.
What is a Property Sale Agreement and how can we get it?
A sale agreement contract is a set of required documents that include all information related to the seller and buyer involved in the transfer process. In Pakistan, these are the required documents that are attached with the Bayaana form:
- Complete details of the property with the property owner’s verified name
- Terms of sale for the property
- The total amount of money which the property is being sold for
- Final date for the buyer to pay the remaining sum of money
What is the complete list of documents required?
To carry out the transfer process smoothly, you need to collect the following documents organized. You’ll need:
- Recent Passport Photos of both parties involved (Buyer and Seller)
- Photocopies of National Identity Cards of both parties
- Original Purchase Deed of the Seller (From the time they purchased the property)
- The original ‘Sale deed’ which is the agreement contract between both parties
This list of documents can also include some more documents depending on the province, region, area, etc. (A lot of documents, we know, but verified property takes tough measures!)
- A ‘Record of Rights’ also known as Fard-e-Malkiat, is a form that can be obtained by the seller from the property registration office. This guarantees that the property is under the name of the seller.
- You’ll need a Non-Demand Certificate (NDC), a document that shows you don’t have any fine due on the property. Depending on the location, you can get this from the local development authority’s office.
- For properties in private housing schemes, there is the need to request a letter from a particular society to carry out the property transfer. This can be used in place of the Fard-e-Malkiat document.
Possession of Stamp Paper and Tax Payment
This is one of the essential and final steps of the transfer process. You’ll need a stamp paper to draft the deed for the sales; that will be the contract for the sale. You can choose. Buyers; will be required to pay stamp duty and taxes during this step.
Let’s take a look at this easy breakdown of the tax duty involved:
- Stamp Duty 3%
- Capital Value Tax 2%
- District Council Fee 1%
- Fixed Registration Fee PKR500 (Can differ as per govt. Order)
Drafting the Sales Deed
In Pakistan, the sales deed is usually recommended to be drafted by a property lawyer or a property agent aware of the bylaws and the rules involved in the process. This is a particularly safe option to avoid any complications that might arise in case you are doing it yourself.
Although, people who are selling and buying property as a business have become familiar with constructing the ideal draft for this deed, which can be done easily with the help of the internet. However, the common practice and recommendation are to take the help of a lawyer to avoid any future complications that may occur.
What do we do after drafting the Sale Deed?
Finally, after a long process, you’ve reached the last step. You can take the sales deed (inscribed stamp paper) along with the required documents to the registrar’s office. From here, the sub-registrar will call both parties simultaneously and hear their verbal agreement for the trading of property.
You’ll need to sign the documents and put in your fingerprint to verify the final sale and complete the transfer process. Once this is done, the official will register the sale deed successfully, then the transfer process is complete, and the property is now successfully transferred to the buyer.
How much is the Commission for the Property Dealer Involved?
If you’re wondering what the person who helped you secure a client and help you proceed with the sale and transfer of the property is, there is a commission that the dealer/agent gets from the client. Although there are no specific laws to govern and record the work of real estate agents and dealers in Pakistan, the general practice remains a constantly changing variable and experiences changes from time to time.
Usually, the commission of property agents comes to around 1% of the total value of a property. This 1% of the value is each from the buyer and seller as the commission to the dealer. If the buyer and seller both have different agents, then both agents get to keep a 1% commission each from their own clients. Sometimes, property agents will ask for as high as 2% of the property value, or even lower than 1%. The amount varied according to the success, reputation of a property dealer, or property value.
Suppose you’re looking to learn more about the legal aspects and procedures involved in property buying and selling. In that case, you can stay connected with our blogs at Feeta.pk, where you can easily find comprehensive information to guide you through the real estate market.
Must-Follow Real Estate Marketing Ideas
In Real Estate Marketing, One cannot object to the fact that comprising a property is an essential matter to discuss. The reason behind this is that in Pakistan, real estate is one of the most beneficial investment opportunities which plays a big part in generating the economy.
But how does this all come into work?
In this blog, Feeta.pk will explain how this is done. And the answer is that real estate companies execute their work through the promotion of real estate companies. Now you might be wondering who promotes the brand and what is the reason behind it?
In today’s time of evolution and development, it has become important to have a marketing team that helps in branding your company. They design such techniques that help to boost the plan and make its presence known. If we talk specifically about the real estate sector, the marketing in real estate chooses the most prominent marketing company to create their name in the market.
In this blog, we will present some interesting and effective marketing ideas that every real estate company should follow
So, let’s have a look!
- Setup a social profile
- Make an attractive business card
- Make yourself easy to contact
- Hire a professional photographer
- Do local sponsorship
- Make your website and application user friendly
- Build google business profile
- Make social media adds
- Keep an eye on your competitor
Now, let us explain every idea in detail!
Setup a Social Profile
The first and most important effective marketing idea is setting up a social profile. This will give your company an instant boost if done correctly. For this, you will have to make social media accounts on all networks such as Facebook, Twitter, Instagram, and LinkedIn. Setting up a social profile will help you connect to your clients and also highlight your success stories. Through your social media profile, you will educate your buyers related to real estate and update them with the project that you are working on.
In one way or another, the world is now dependent on social media, you will probably not be able to make your presence without social media as much as you can with the help of it. To make your social media attractive you will have to upload nice photos, catchy captions, and above all, you will have to be active on social media for your clients.
Make an Attractive Business Card
Design an attractive business card for your company. The card should contain all the necessary information such as the name of your company, contact name and number, email, and company address. A business card would represent your company’s brand and it is also considered to be an overall business image of your business.
Your card must be designed in such a way that it inspires people and the desire to contact the company. A business card is also considered a direct marketing tool because in-person meetings lead to sharing of business cards directly with whomever you want to share them with. By this, we can say that a business card can make or break the marketing game for you. The reasons behind this are
- It gives ease of contact details
- Create a quick first impression
- Gives a personal touch
It is a fact that successful marketing of real estate lies in professional and great photography. Photographs of poor quality will make people lose interest and result in less followership. For this, you must hire a professional photographer who has experience in architecture and home photography. By this, you will be able to make your listings attractive and gain the attention of people and then this will result in helping you to get a potential buyer. Your photos will act as a support to show your clients what you have to offer. Nowadays 3D tours are becoming a popular thing. Your professional photographer can also create a 3D video of your property which will help your clients to have a 3D tour of the house while sitting at home.
Hire a professional photographer today to make your real estate company’s listing more enticing and attractive.
Do Local Sponsorship
Being a local sponsor will help you make your brand be in the spotlight. Be a sponsor at festivals, school events, or a sports team. This means that you can get your business name or brand logo on pamphlets, t-shirts, or flyers. If you will sponsor a local group you will directly become their real estate leader for reference. Some ideas for local sponsorship are
- Donate to charity
- Sports team sponsor
- Sponsor an event such as pet adoption,
- Donate money at local schools
- Contribute monetarily to different building projects
The sponsorship idea completely lies in the motto “spend money to make money” though it is an old saying it is true without any doubt. Therefore real estate companies should take advantage of these sponsorship opportunities and donate to a cause to create a positive impact on society and build maximum exposure for your company.
Make your Website User Friendly
Nowadays people get attracted to what’s easy for them to use and understand. You must formulate a user-friendly website. The reason why a website is important for real estate marketing is that it helps to educate clients and makes it easy for agents to provide them with valuable resources. A website should deliver content that helps buyers throughout the purchasing process. Here are a few features that should be included in your real estate website
- Photos and description of properties
- Searchable listings
- Customer-centric content
- A consistent look
Build Google Business Profile
To make it easy for users to find you on google maps, search and knowledge panel, set up a google business profile. The reason why having a business profile on Google is important is that it is one of the most trusted platforms for authentic reviews. You can make your business rank higher through Google’s business profile. But this is dependent on the regular maintenance of your business profile. This can be done by logging in to your profile daily and adding new content like listings and photos.
Make Social Ads
To create a presence on social media, the feature that helps the most is paid social media ads. Making social ads for your real estate business can result in excessive engagement and an increase in followers on your profile. This feature allows you to choose your target audience with a budget that suits you. Keep in mind to choose a picture or video for a paid ad that is attractive and highlights information that you would want to give to your audience. Social media ads are one of the effective ideas that can help in real estate marketing.
Keep an Eye on your Competitors
In this era of competition, it is important to keep a check on what your competitors in real estate are doing. How are they managing their social media or how does their website look? By this, you can also get an idea of the mistake they are making and you can avoid replicating them. this will help you distinguish how your company can do better. after you do your analysis, you can come up with new ideas that how can you make your company stand out.
So, which way do you think is most effective?
For the latest updates, please stay connected to Feeta Blog – the top property blog in Pakistan.
5 Tips To Increase Rental Property And Maximize Income
The appearance and functionality of your rental property have a direct correlation to the rental income it can produce. By investing in the right improvements, you can charge your tenants more. This can result in higher rental income in the long run.
However, there is a fine line between improvements that allow you to increase rental income and those that are unnecessary or superfluous. You need to determine who is who so that you don’t end up paying for expensive renovations that do nothing to your rental property.
Here are five simple but effective improvements that can increase your property value and, eventually, enable you to earn more rental income:
1. Improve The Exterior Of Your Property
The exterior of your property is very visible, and how it looks can create an impression. You find it difficult to attract tenants and encourage them to live on your property if your exterior looks poorly maintained.
One of the easiest ways to enhance the value of your rental property is to take care of your exterior. As a landlord, you should put in the time and effort to make sure your exterior is in pristine condition. You can achieve this goal by:
Pressure to wash your exteriors:
Hire professionals to take advantage of their press wash services to remove dirt, dust and other debris from your exterior. Pressure washing also removes mold, keeping your rental farm cleaner and healthier.
Painting your front door:
The front door attracts the attention of tenants and sets their expectations on what they can see inside the property. Increase their excitement by painting your front door in bold color. If your exterior is painted in nude shades, go for light shades of red, blue, yellow or orange for your door.
Pay attention to the landscape:
Check the general condition of your landscape and remove weeds and dead branches. If your outdoor space allows, you can plant more flowers and invest in a water feature, such as a pond or fountain.
2. Refresh The Bathroom
How the bathroom looks and works can significantly affect a person’s mood throughout the day. Can you start the day in a positive mood if the bathroom looks dirty? How can you enjoy your bath or shower if the bathroom lacks essential amenities? Tenants will probably feel the same way, so make sure to upgrade your bathroom.
You don’t need to break the bank just to improve your bathroom. Here are some cheap bathroom renovation ideas that will definitely make the space look and feel new:
- Mess up to make the space look bigger and feel cleaner.
- Experiment with bathroom wallpaper.
- Invest in stylish storage, such as an open shelf and the use of wicker baskets.
- Swap expensive floors for affordable materials.
- Raise old bathrooms by adding new paint or upgrading hardware.
3. Work On The Kitchen
Many tenants will choose to pay more, provided they get the most functional and attractive kitchen. In addition to cooking and preparing meals, tenants were more enthusiastic about the kitchen, as here they would entertain guests and even hold parties.
Contrary to popular belief, you don’t need to spend thousands for a successful kitchen renovation. Like the bathroom, there are inexpensive kitchen improvements that can change the overall look of the space, such as:
- Adding artwork to the walls to create focus
- Adding more seating furniture
- Change the lighting fixtures
- Changing your cabinet doors and hardware
- Instead of replacing kitchen floors, paint them with a neutral shade
4. Add New Living Spaces
The more housing your rent has, the higher the rent you can pay your tenants. This will allow you to earn more income in a shorter period of time.
Evaluate the layout of your property and see if it can still support another place to live. For example, if your wolf property has a separate dining room, consider converting it into another bedroom, or if it’s a large room, split it into two bedrooms.
5. Offer an Outdoor Recreation Space
Gone were the days when tenants only entertained guests inside the home. Today, more and more people would choose to hold meetings in outdoor spaces as these offer a change of scenery and a fresher atmosphere.
Another way to increase the value of your rental property is to offer an outdoor recreation space to your tenants. Depending on the space available, you can add a deck, beauty or some outdoor furniture and BBQ. All of these updates are sure to attract tenants and make your rental property more valuable.
Upgrade Your Rental From Today
The housing market worldwide is full of thousands of wolf holdings. Fortunately, there are many ways for yours to stand out, namely by following the tips presented in this article. These tips are enough to make sure your rental property meets modern standards and attracts as many tenants as possible.
Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.
Private Property Financing Options: Lender’s Guide
Most real estate borrowers run to traditional lending institutions to finance the properties they are looking to buy and sell. Banks, government support housing, and insurance companies are usually the preferred companies for real estate.
However stringent requirements and the long waiting period have become the main obstacles for most borrowers. And, for buyers who are looking to buy a great property, time is of the essence. Alternative financial arrangements aim to stifle these challenges. With fewer rings to skip, real estate investor-borrowers are more than willing to take advantage of unconventional lending options.
If you are an inexperienced real estate investor, I need to get acquainted with other loans, especially if you have outstanding loans from traditional financial companies. Read on to know more about private financing and hard money lending, as well as the pros and cons for investor lender and investor borrower. You read that right. In private financing, the lenders and borrowers can both be considered as investors.
What is private real estate financing?
It takes a lot of money to invest in real estate. As an investor, you can turn to either conventional or alternative lending methods as it suits you best. Private financing is one of the ways you can secure an investment. Often, private financing depends on the relationship between the lender and borrower. Most often, however, private financing for real estate can be in the form of private equity funds.
The main drawback of private financing is its flexibility. It can be used to finance a variety of real estate; from buying rental property to investing in a home, or as additional financing for new real estate construction. Private lenders also usually require fewer documents and a more lenient control and approval process.
What is hard money lending?
As a type of private real estate financing, hard money lending is an alternative financing plan that allows borrowers to use property as a loan guarantee. This means that the property used as collateral can dictate how much the lender can borrow, rather than alternative lenders relying on the borrower’s credit history and other circumstances.
Which leads you to the question; do you get a difficult loan? The truth is that it may not be suitable for anyone. Hard money lending works best for investor borrowers who do not have impressive credit but own valuable property. Placing property as collateral allows a borrower to access loans typically limited to those with impressive credit ratings.
Similarly, a property owner at risk of having property foreclosed may also use this unconventional real estate financial plan.
As with other private financial methods, hard money lending allows investors to participate in the real estate industry even without going through the lengthy processes of buying homes, or keeping and maintaining a property to be included in their investment portfolio.
A private lender must set criteria for qualified borrowers, and like traditional lenders, you may also be turned down for a loan.
What are the benefits and risks of private real estate financing?
Using private money to lend to a real estate borrower comes with its risks and benefits. Below is a list of a few points:
Advantages for the private loan investor
It’s a great way to earn a passive income. You don’t have to go through all the hassle of finding, buying or managing rental properties and other types of real estate. You just need to raise money to lend to the borrower and collect regular payments.
Due to the more lenient approval process, high-risk borrowers are allowed access to additional financing. This means that higher interest rates are imposed on private cash loans compared to traditional lenders. Investors can also enjoy higher returns.
- Who can become a private financial lender?
Being a private financial lender is ideal for the following categories of people:
- A real estate investor who wants to expand their portfolio
- A professional who has a high income career
- An individual who has considerable money reserves
- Emeritus seeking passive income
Generally speaking, anyone who is able to raise good money can lend their private money to borrowers. If you want to become an investor, have someone you can trust, such as a family member, as your first borrower.
However, it is not without its drawbacks. For example, the borrower you have chosen to finance may not be as financially savvy as initially thought. And as a result, you may lose instead of making money.
Additionally, the time and effort you have left to find and maintain real estate should be dedicated to research on real estate investors, and other important factors on the loan process.
Benefits for the private lender
As mentioned, private lenders generally have more lenient examination and approval processes, allowing borrowers to have better access to real estate financing. And, while alternative private financiers have their own criteria for ideal borrowers, they are nevertheless less stringent than others.
- What type of borrowers can take advantage of private financing?
Additionally, a real estate borrower who is planning or in the middle of the following projects looks more attractive to private lenders:
- House fins: If you are a borrower-investor who buys cheap houses and repairs it to resell at a higher price, you will find that private lenders save lives. Conventional lenders usually do not consider outdated properties and require too much time before they can release the money.
- Rental investment investors: Investors who need additional financing to rehabilitate rental property can also access private money. Look for a lender who wants to have a steady stream of passive income.
- Developers: These types of investors-borrowers are looking for useless land where they can build residential or commercial real estate. Because time is money in construction, these types of borrowers may not be willing to waste the lost time and opportunity waiting for monetary release. A private financier is a very tempting proposition.
Risks for the borrower
The only foreseeable risk to taking advantage of private financing is that you may not be able to pay due to the high interest rates. However, if you need money quickly and for emergency purposes, such as when you face foreclosure, it won’t matter much.
Do you have private funding?
Private financing is an alternative way to access finance for your real estate. The smoother and overall faster processing is tempting, but it can literally cost.
If you have a negligible credit record but need money for planned investment, quickly; consider asking lenders for private money.