To buy real estate in Pakistan, you’re not merely signing a few papers or agreeing to an agreement with a real estate broker. There are several things to keep in mind while purchasing property, particularly for Pakistanis living abroad, in order to avoid scams. Many Pakistani expats have been conned out of money while trying to buy property in Pakistan. If you are unable to make the trip to Pakistan to complete the transaction, you should arrange for an inspection of the property to be conducted by a trustworthy family or friend who does.
The official housing administration should be contacted on your behalf to enquire about the legal process. Allotment letters or land transfers, depending on what they’ll do for you.
Make unique power of attorney
In Pakistan, a big problem is that many ready-made powers of attorneys are prepared with the same text that is widely considered to suit all situations.. There are a few items that must be included by law, but each power of attorney should be unique and relevant to the purpose you are handing it over to someone.
Legal points to check about the property
Don’t purchase a house in a hurry. Double-check all legal papers and the history of the property and housing developments before you buy. The following are a few things to keep in mind.
Approved layout plans/building programs
There are reputable positions available. The ability for potential buyers to study some kind of plan or design. These designs and plans must be authorised by the relevant government authorities.
A historic record of home’s possession
For your own protection, you should demand confirmation of the home seller’s ownership history. All genuine owners will be able to provide official records of their current and former employment.
Property seller ought to have ownership of this property in white and black
Investors of all types may benefit from purchasing real estate. For this reason, you must be confident that you require and verify formal paperwork proving the seller is in possession of the property that is being advertised.
All dues around the house have been rid
Don’t buy anything that has outstanding bills, such as utility bills or real estate taxes. If a seller is willing to impose this financial load on you, you should avoid dealing with them at all costs.
Demand the first copy of registry
The importance of documentation has previously been emphasized, thus this component deserves particular attention. The allocation letter or the name paperwork should always be requested. Copies should be made. Actually, scanning and saving all of these data as soon as possible is always a good idea.
Register your name under government files
Get yourself registered with the Pakistan Securities and Exchange Commission (SECP) or Federal Chamber of Commerce & Industry to protect your investment (FPCCI). A complaint may be made and a record kept for the authorities if there is any fraud or problem.
Get knowledge about the overseas taxes on properties
Foreign investors from Pakistan have to pay 4 percent of the withholding tax anytime they deal in property-related transactions.
Some other taxes you may have to pay are Capital Gains Tax (CGT), enrollment fees, and stamp duty charges.
A real estate agent can help you with all of the fees and expenditures you’re likely to encounter throughout the buying or selling process.
Documents while investing in property In Pakistan:
Nothing can be considered finished until all of the necessary information has been collected and documented. To invest and register property in your name, you’ll need to furnish the necessary legal papers.
The following is a basic list of the papers that are required from your side in order to proceed:
- 2 or more photocopies of current passport
- Most recent passport size pictures of you
- At least 2 copies of National Identity Card for Overseas Pakistanis
- Photocopy of entry stamp for living in foreign country
- Photocopy of exit stamp from Pakistan
- List of your family members
- Photocopy of National Identity Card of next of kin
Before submitting your papers for further processing, you must first get them authenticated. Depositing a down payment is also necessary to protect yourself in the event of a future dispute.
However, even if you are abroad of the nation, you may acquire the property that you want without having to worry about scams provided you keep certain considerations in mind.