Purchase of property in Pakistan is just not signing few documents or striking a deal with a real estate agent.
There are a lot of factors to consider when buying property especially for overseas Pakistanis to safeguard themselves from frauds.
Many Overseas Pakistani’s, have suffered badly by being cheated on in their attempt to purchase property in Pakistan.
To avoid the trouble we are posting this easy guide for our readers so our overseas Pakistanis can invest in their homeland safely.
Following are few things to keep in mind when buying property from Overseas and precautions to take.
Safest way to Purchase or Sell Property for Overseas Pakistanis:
Take Precautionary Measures
It is advised for overseas Pakistanis or foreign buying or selling property in Pakistan to take precautionary measures.
The concept of many overseas residents doing direct deals in order to save themselves from paying extra commission without gathering all the necessary information and getting checks done and ultimately end-up facing a lot of hurdles and getting deceived.
Do Not Fall for the False Ads
Try not to get hasty and fall quickly for the property sales-housing society ads that are targeted at you on Facebook, other social media channels and on TV every other day.
To be precise, any overseas Pakistani intending to buy property in Pakistan should not fall prey to prices of these glamorous advertisements and should be aware of these commercial built scams.
Be aware of illegal housing societies and properties
If you are stuck up with fake properties then these fraud societies and their shenanigans can become a real headache for those who live in Pakistan, never mind those who live in abroad.
These societies or properties can be substandard or are likely to go into litigation later due to no proper permits or government clearance.
Verify that land is approved by Municipal authorities
If property falls within the management of municipal authorities such as Capital Development Authority (CDA), Karachi Development Authority (KDA) and Lahore Development Authority (LDA) then it is guaranteed to be a safe investment prospect.
Verify that land is approved by government authorities
Always double check the home scheme is accepted by the government authorities. In case a job is still awaiting the government’s acceptance, then it is sufficient enough to set alarm bells for potential customers.
Lack of acceptance, more frequently than not, means there’s a high chance that the authorities will soon cancel the property. Your best bet is, thus, investment in well known, accepted projects only.
Check if property has any future
It is necessary to have a futurist approach while you are investing your money in something big. That’s why if you want to buy property for investment purposes then keep an eye on future growth of the property.
For that do some research on some important factors of the society for example legal authentication, builder of the society, long and short term investment, track record of the society, pros and cons of the society, profit and previous growth of rates of the society.
Hire A Good Real Estate Agent
It is advisable to hire a good real estate agent who is fully familiar with the entire regional real estate scenario and will be able to accommodate you according to your need and capacity. This way you will be able to save yourself tons of money.
Survey the different potential Properties
Before you make up your mind to invest your savings, you should ask your property dealer/real estate dealer to take you to visit the properties he has shortlisted for you. Inspect the properties and properly check their authenticity before you make a final decision.
Invest in Authentic Properties
Our advice is to invest in established authentic housing societies which have a reputable history and are not ripping its investors with different fees and development charges, but instead giving a good deal in a good price.
Get information about other projects of THE BUILDER
It is possible to trust the developer or builder with close eyes if it is an established figure in the realty marketplace with a history of successful home projects. Like Habib limited of DHA and Capital Smart City and Blue Group of Companies of Blue World City are quite a few of large scale residential project builders and strategist under their belt.
Mostly, a trustworthy developer provides a deadline as to when the job finishes. You can make a decision based on just how well, and fast, they’re working on a continuing scheme
Check the pros and cons of property
When selecting a property, no matter it is for purchasing or even to lease, the guideline is to make your decision based on what you find rather than on ‘what they promise to deliver.’
Solve your queries and ask them for answers:
- Is there power, gas, water accessible?
- How powerful is the main infrastructure for example drainage system and roads?
- How can people connect to each other? Is the society safe and sound and up-to-date?
- What about power backup?
Hire a lawyer:
In a perfect world everyone would engage in the services of a lawyer or certified real estate agent but unfortunately in real world that isn’t the case.
In most cases people end up in legal issues and frauds just in order to save a few extra bucks, which later costs them an arm and a leg to just get out of such situations.
The best way of not getting caught-up in such situations is by hiring an experienced lawyer and authenticating the paper work and the whole process of buying/selling property.
If you can’t afford a real estate agent or a lawyer:
If you are intending to strike a deal directly with the owner of the property without any lawyer or real estate agent, verify the registry title of the seller from the local authorities as open market plots are most prone to illegal possession.
Make sure of registered property
Make sure the property you are purchasing has the registered sales deed updated in the land records and validates you as the new owner. Else the sales deed has no purpose.
Read and check all Documents before signing
Whenever you consider buying property or renting one in Pakistan thoroughly check the important documents for verification before you strike a deal. By going through these important procedures will save you a lot of trouble in future.
In case you are abroad and want to purchase or sell Property in Pakistan
If you are abroad and can’t visit Pakistan to close a deal, it’s advisable that you have a close relative living in Pakistan or a trusted friend to visit the property and inspect it.
They should inquire on your behalf from the official administration of the housing scheme about the legal procedure. Whether they will transfer the land in your name or just give an allotment letter.
Avoid giving Power of Attorney to any one
If you live abroad and want to your family member or close relative to take care of your property you can give them a letter of attorney. But keeping in mind never to give General Power of Attorney to anyone, unless it is really necessary, only assign Special Power of Attorney mentioning specific purpose.
As the holder of General Power of Attorney enjoys all legal powers including the right to sell property without notifying the owner.
The importance of Power of attorney
Whether you should authorize power of attorney or not is the question here? Sometimes it can be astoundingly surprising when a good friend deceives you and misuses the power you give them.
It is always recommended not to sign any undertaking until the content has been thoroughly read and understood by you and your lawyer.
Make unique power of attorney
A major issue in Pakistan is that there are many ready-made powers of attorneys made with same content that is commonly assumed that it fits all scenarios. There are few things that need to be included in there by law, but every power of attorney should be different and relevant to the reason you are giving it to someone in the first place.
Legal points to check about the property
Do no rush to buy a property. Double check all legal documents and history of the property and housing projects. Following are some of the points to take under consideration.
- Approved layout plans/building programs
Credible jobs have Some Type of plan or design that Potential customers can review. These design and plans have to be approved by the appropriate government authorities.
- A historic record of home’s possession
It is vital that you require proof of the owner’s History of possession of the house which they are selling. All authentic owners will have official documents of the present and previous jobs.
- Property seller ought to have ownership of this property in white and black
Investing in real estate is a significant choice for all Kinds of buyers. It needs a substantial amount of money, thus, you need to be certain that you need and confirm official records that prove the vendor actually owns the property that is being marketed.
- All dues around the house have been rid
Do not purchase anything that has dues like utility bills and real estate taxation, etc, pending. If a vendor is ready to place this fiscal burden on you, then it is best that you do not deal with them whatsoever.
- Demand the first copy of registry
As already discussed the significance of documentation, this component requires special emphasis. Always demand the name document or the allotment letter. Make copies. In reality, it is always a great Idea to instantly scan and save all of such files and store backup.
Register your name under government files
To save your investment always gets yourself registered with government’s business regulatory services like Securities and Exchange Commission of Pakistan (SECP) or Federal Chamber of Commerce & Industry (FPCCI). So, if there is any fraud or issue then you can complain a file and have clear record in eyes of government.
Get knowledge about the overseas taxes on properties
It is evident, taxes are involved but being a Pakistani foreign investor you want to cover 4 percent of the withholding tax whenever you are handling a property associated trade.
Other taxes you might want to cover comprise Capital Gain Tax also called the CGT, the enrollment fee along with the stamp duty fees.
If you are using a home broker you will be assisted with each of the charges and the probable expenses you might need to take care of.
Documents while investing in property In Pakistan:
Nothing is complete before the proper documentation. You will need to provide proper legal documentation so that you can invest and register property under your name.
The basic lists of the documents which are needed from your side are following for further process:
- 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
You need to attest your documents first before submission and further processing. Also you need to deposit down payment for security and secure evidence with yourself for any future issue.
Buying property is not an easy task especially if you are out of country but if you consider given points then you can easily buy what you want with no fraud.
For further assistant and information you can also contact trusted real estate companies with clear track background like Sky marketing private limited Islamabad.
It is one of the best real estate company in Pakistan and deals in many housing society with different features like university town, ICHS, PECHS, Park view city Islamabad or Bahria Town Peshawar.