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Must-Follow Guidelines for the Sale and Purchase of Plots

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Buying and selling plots in Pakistan is not an easy task. Despite the efforts from different governments, there are still some factors that can make the entire experience unpleasant, especially for the new investors.

There are many factors to keep in mind before making any purchase or sale in the real estate market of Pakistan. These guidelines may vary from province to province but the general guidelines for purchasing and selling remain the same in the entire country. Here is the complete guide to buying and selling plots in Pakistan.

Purchasing a Property – Stepwise Guide

NOC and Approvals

The first thing to consider while purchasing land in Pakistan is to look at the legality of the location. Different authorities such as TMA, CDA, RDA, LDA, etc are responsible for declaring projects legal or illegal.

There are many illegal housing societies in the country and the list of these illegal locations can be found on the concerned development authorities’ websites. Some of these housing societies are seeking approval from the development authorities and are going to be approved soon.

It is important to verify the NOC against the license number of the housing society.

Also Read: How To Buy A Plot In Pakistan: A Guide For First Time Buyers

Developer and Development Progress

The development progress of housing societies can be verified by physically visiting the location. Some people buy property files in a new developing housing society, but everyone cannot risk their investment in a property file. Therefore, it is important to visit the location before making any transaction to avoid any kind of fraud.

Confirm Market Rates

There are speculated prices in the market that makes a price bubble and when it bursts, the prices can go down dramatically. It is important to use your resources to find the true value of the property and try to get the best deal on your next purchase. You can hire a credible real estate agent to get true market knowledge.

Real Estate Agent Commission

It is important to settle the real estate agent commission beforehand to ensure that there is no ambiguity later on. It is a common practice in Pakistan to charge 1% of the property value but some may even charge up to 2% of the value. They charge this amount from both parties and therefore, it is important to settle on the payment beforehand.

Payments Due on the Buyer

  • Transfer fee
  • Stamp duty
  • CVT
  • Tax

Also Read: Buying A Plot In Islamabad Is A Lot Cheaper Than You Might Think

Selling a Property – Stepwise Guide

Research and List Your Property

Many sellers in the market rely completely on their real estate agents in the area for the property estimation and bear loss on their sales. You must utilize all your resources including digital media to research the prices of the properties in your area. This will give an estimate of your property value. After the preliminary research, you can either post an online ad using the modern-day real estate websites or can contact a reliable real estate agent to handle the process.

Token Money

Token money is paid by the buyer to show their intent for buying your property. In this case, you can trust them with the photocopy of your property documents. You will also have to request the land development authority to verify the documents for the buyer. The development authority will be obliged to show the authenticity of your documents only in your presence. Token Money is also commonly known as Bayana.

Capital Gain Tax – CGT

As a seller of a property in Pakistan, you are obliged to pay 1% of your property value in CGT. If you are a non-filer, CGT is 2% of the property value.

Transfer Letter

The buyer and seller are to be present in the respective office on the day of the transfer. On this day, the buyer presents the Pay Order to the seller, and then the seller requests the concerned authority to make necessary changes to the title of the property. All this is done to secure the transaction before the law. You can make arrangements for a property transfer letter once the payment is in your account which can take a day or two.

Common Precautions in Buying and Selling of a Property

  • No Demand Certificate – NDC
  • Transfer application form
  • Original allotment letter
  • Buyer and Seller Affidavit
  • Agreement to sell a plot

Membership Application Form

  • Attested photocopies of buyer’s and seller’s CNIC
  • Attested photocopies of witnesses – 2
  • Statement by the Account Office – Original
  • Allotment Letter
  • Property Purchase Agreement


The idea of selling or buying a property in Pakistan alone can be tiring because of the sheer number of steps involved. But all these steps are for the safety of both parties. It is important to gain enough knowledge before making any transaction to avoid any kind of scam in the market.

It is recommended to hire a professional real estate agent and a lawyer to breeze through the entire process safely. This will give you confidence for future transactions in the real estate market as well.

To get the best advice about buying and selling plots, contact Manahil Estate, or call now 0345-5222253. Manahil Estate provides you with an opportunity to sell your properties through our website. Click here

Manahil Estate provides you with an opportunity to find your dream house at the best price. Send us your requirements here.

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