Property Transfer Deed in Pakistan

Property Transfer Deed in Pakistan - ahgroup-pk

Property ownership, selling, or purchasing property in Pakistan can be fraught with risks if one is not well aware of the documentation process. The first and most important step is to learn how to transfer property in Pakistan.

Most people think that property registration gives them legal recognition, but this is not the case; it’s important to complete all the necessary documentation to reserve all ownership rights.

The property transfer deed is a crucial document for securing property rights. This legal documentation facilitates the transfer of ownership from seller to buyer and serves as a safeguard against potential legal and financial risk. 

In this blog, we will explain the importance of the property transfer deed and outline the necessary steps required to document it.

Property Transfer Deed 

In Pakistan, a transfer deed, or conveyance deed, is a legal document that transfers property ownership from a seller to a buyer. This document helps prevent future issues regarding property ownership. Once you have completed the sale registry for the property transfer or ownership, the next step is to transfer the property deed into your name. 

Sale Deed vs Property Transfer Deed

A sale deed is prepared to document the deal in case of a property sale and purchase. A transfer deed documents the transfer of ownership in case of a gift, inheritance, partition, settlement, etc.

Property Transfer Deed in Pakistan  Step-by-Step Guide

The property transfer procedure in Pakistan involves a series of legal steps to ensure transparency and validity. We have enlisted the steps required for a smooth property transfer.

1. Documents  for Transfer Property Deed

The property deed process requires submitting several documents at the Sub-Registrar’s office in the area where the property is located. It includes the following documents:

  • Sales deed or registry document.
  • Identification documents of both the buyer and the seller.
  • Original title deed of the seller.
  • Power of Attorney, if required. This document is needed when the seller has authorized someone else to sell the property on their behalf.
  • A No-Demand Certificate is a document the relevant housing authority issued confirming no outstanding dues.
  • Computerized copies of CNIC.

2. Agreement to Sell

Prepare an agreement outlining the terms and conditions of the sale. The buyer pays a token amount called (bayana) as a commitment.

3. Drafting the Deed

The sale deed should include details of the property, the sale price, and the agreed-upon terms. It is better to hire a sales deed writer or a lawyer to draft the deed, and both parties can mutually work on it.Additionally, if you live in the Punjab province, you can register the sale on the Punjab Land Record Authority’s Registration of Deeds portal, which provides a complete format for customizing each sales deed.

4. Stamp Paper

A stamp paper is a document that drafts the sales deed. The stamp paper differs depending on the property’s value. However, each stamp paper has specific taxes associated with it, and the ratio is decided according to the Property tax in Pakistan.

 Breakdown of the applicable taxes;

  • Stamp Duty (3%)
  • Capital Value Tax (2%)
  • District Council Tax (1%)
  • PKR 500- Fixed Registration

5. Legal Review

To make the deed more secure, remember to have it reviewed by a legal expert to ensure compliance with local laws.

6. Signatures and Witnesses

In this step, the seller and buyer sign the deed in the presence of two witnesses. 

7. Submit for Registration

Submit the signed and attested deed and supporting documents to the Sub-Registrar’s office. The Sub-Registrar verifies the records and witnesses the transfer after the following procedure, and you can have your registration around eight working days. 

8. Issuance of New Title Deed

After the process, the property is finally mutated in the buyer’s name in the revenue records, and the buyer will receive a new title deed reflecting the ownership change.

It is the buyer’s responsibility to apply to the land record office for the mutation of the property.

Property ownership is transferred from the seller to the buyer through a Mutation. After that, the buyer obtains the “Fard-e-Malkiat,” or property title deed.    

By following these steps, you can ensure a smooth and legal property transfer process in Pakistan.

Importance of Property Transfer Deeds 

A transfer deed is crucial in Pakistan for conducting transparent and legally binding property transfers and providing clarity and security in real estate transactions.

The Significance of Property Transfer Deed

1. Legal Acknowledgement

It provides legal recognition and ensures the new owner’s rights to the property are officially acknowledged and protected under the law.

2. Official Documentation

Updates the official records maintained by the local revenue department or sub-registrar office. This documentation is crucial for establishing clear ownership and preventing disputes over property rights۔

3. Stamp Duty Payment

The property transfer deed facilitates the payment of stamp duty, which is mandatory for property transactions in Pakistan.

4. Shift of Responsibilities

After completing the transfer deed process, the buyer becomes responsible for property taxes, utility bills, and municipal services associated with the property. 

5. Financial Assurance and Security

Transfer deed serves as collateral and security for loans and mortgages related to the property and assures that the property can be legally used as collateral for financial transactions.


Owning a property could be rewarding but can become hectic if you are unaware of the correct legal proceedings and documentation process. To avoid risk related to property ownership, do all the necessary documentation, and the property transfer deed is among them. We have drafted all the required details for you to help you avoid any consequences in the future.

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