Registering Property in Quetta, Pakistan
STANDARDIZED PROPERTYProperty value: 2,059,995
City: Quetta
Registration Requirements:
| Procedure 1. | Publish notice of transaction in a newspaper to invite claims |
| Time to complete: | 8 days |
| Cost to complete: | PKR 1000 |
| Comment: | An advertisement in newspapers inviting objections/claims should be placed, according to common practice. After publication, there is a seven-day waiting time for arrival of objections, if any. Advertisement is published in local newspapers (dailies) having a large circulation. |
| Procedure 2. | Obtain a non-encumbrance certificate |
| Time to complete: | 15 - 30 days |
| Cost to complete: | PKR 50 |
| Comment: | The non-encumbrance certificate shall also be obtained by the seller and this should be tendered to the buyer in verification of the fact that the property is free from all encumbrances. This would be issued by the Sub registrar / Tehsildar concerned. If the title document is obtained from the Revenue Record Department then the non-encumbrance comment is noted on the Fard (proof of entry in revenue record). |
| Procedure 3. | Obtain a No Demand Certificate from Excise & Taxation Office |
| Time to complete: | 2 days |
| Cost to complete: | PKR 200 |
| Comment: |
This is a requirement in Quetta. The No Demand Certificate (NDC) shall be obtained by the Seller from the concerned Excise & Taxation Officer of the rating area, where his immovable property situates. The certificate is procured by filing an Application to the Excise & Taxation Officer (ETO) concerned along with the fee. The ETO shall than verifies from his record whether the premises to be sold has made any default in respect of the Urban Immovable Property Tax and who is the owner thereto recorded in form P.T. 1. In case of any arrears, the ETO shall require the applicant/seller/owner to deposit the same in Government treasury through a Challan prepared at ETO office. Once the entire dues stand cleared, the ETO issues a certificate stating therein that all the taxes in respect of immovable property are duly paid and the Excise & Taxation Department has no objection upon this sale. This certificate is then appended as a necessary document alongside the sale deed at the time of registration. In absence of NDC, the Sub-Registrar concerned can refuse registration. |
| Procedure 4. | Obtain a land tax excerpt (Fard Jamabandi) from the lower cadre Revenue Officer (Patwari Halqa) |
| Time to complete: | 2 days |
| Cost to complete: | PKR 200 |
| Comment: |
This is a requirement in Quetta. The Fard Jamabandi (An excerpt from the record of rights maintained by the land revenue officials) is now a must for registration if the property is amenable to land revenue or recorded in the register of records of right maintained by the land revenue officials. This document shows the name of owners, description of land, measurements of land, present occupancy etc, as recorded in the latest register by the Patwari. The Fard should be prepared by the Patwari within a period of one month before the registration is taking place. The document is obtained by making even an oral request to the Patwari and paying him the fee. He accordingly verifies the ownership etc., from his record and accordingly issues this excerpt. The Fard is then appended with the other necessary documents at the time of Registration of Deed |
| Procedure 5. | Fill a Challan Form 32-A with the Treasury Office and obtain Stamped Paper |
| Time to complete: | 3 days |
| Cost to complete: | 5% of property value (Stamp Duty) |
| Comment: | All the transfer instruments are charged with a stamp duty, mentioned in the table appended with the Stamp Act, 1899. Stamped papers of different denominations are available either from Treasury Office or from Stamp Vendors. In Quetta stamp papers are obtained from the provincial government's Treasury in case stamp papers worth more than a certain amount are required. |
| Procedure 6. | Deed Writer prepares the deed on the Stamp Paper |
| Time to complete: | 1 - 2 days |
| Cost to complete: | PKR 1000 |
| Comment: | Stamp papers, once purchased, shall be taken either to a lawyer or a Deed Writer who shall scribe an instrument of sale together with all the necessary recitals and operative terms and conditions in the deed. This deed shall inter alia contain all the details regarding the parties, the property transacted, its value, rights, easements available etc. mentioned at length. |
| Procedure 7. | Assessment of Capital Gain Tax at the local Excise and Taxation Office |
| Time to complete: | 2 - 4 days |
| Cost to complete: | The formula for the payment of tax is as under (though not counted in total cost): If the profit or capital gain is up to PKR 50,000 -- no tax If the profit exceeds PKR 50,000 and is up to PKR 100,000 -- 2.5% If the profit exceeds PKR 100,000 -- 5% |
| Comment: |
This tax is a significant departure in the property registration procedure in Balochistan vis-à-vis other provinces of Pakistan such as Punjab and NWFP (where no such tax is recovered). The tax is recovered upon the difference of price of land, paid by the seller at the time of his purchase and the price of land, at the time of sale. The formula for the payment of tax is as under: If the profit or capital gain is up to PKR 50,000 -- no tax If the profit exceeds PKR 50,000 and is up to PKR 100,000 -- 2.5% If the profit exceeds PKR 100,000 -- 5% Once the old documents of title, along with the newly drafted sale deed, are presented to the concerned Excise and Taxation Officer, he makes an assessment of the Capital Gain Tax involved. Although he can disagree with the new sale consideration shown, normally no such disputes are raised and the amount is determined on the basis of difference in two sale deeds. After the assessment, accordingly a challan form is handed over to the Applicant (usually buyer), who is directed to pay the fee in designated Bank/State Bank of Pakistan. |
| Procedure 8. | Payment of Capital Gain Tax at the local branch of the State Bank of Pakistan |
| Time to complete: | 1 day |
| Cost to complete: | (tax according to scale above) |
| Comment: | Once the assessment of Capital Gain Tax is finalized and accordingly a challan is made, it is taken to the designated Bank for payment. Upon payment, the paid copy of the challan is returned and retained as conclusive proof of payment of Capital Gain Tax. In this study, capital gains taxes are not counted in the final cost analysis. |
| Procedure 9. | Pay Transfer of Immovable Property Tax (TIP) |
| Time to complete: | 1 day |
| Cost to complete: | 2% of property value (transfer fee) |
| Comment: | Since the property is situated within the municipal limits, the concerned Town Municipal Administration (TMA) would charge 2% of the sale consideration as Transfer of Immovable Property Tax (T.I.P. Tax) which is collected by a contractor of the TMA sitting in the Registrations Circle concerned. The concerned Official goes through the deed, verifies the value/sale consideration with government notified rates of the Area and accordingly issues the receipt for payment of TIP Tax. He further affixes a seal on the Sale Deed, in acknowledgment of the Municipal/ TIP Tax. |
| Procedure 10. | Execute and register of the deed of sale at the registration office |
| Time to complete: | 15 - 30 days |
| Cost to complete: | 1% of property value (registration fee) |
| Comment: |
The Sale Deed is then presented for registration to the Office of Sub-Registrar along with the corresponding documents. The deed is executed in the presence of two witnesses to identify the executant(s) and to attest the execution. After confirming the identity of the executant(s), marginal witnesses, value of the property which shall not be below minimum prescribed rates, and affixation of stamp duty, the registration officer shall order registration of the deed in Book 1 on payment of Registration Fees equal to 1% of the value of the transaction. Deeds are normally executed in front of the registration officer who then takes signatures and/or thumb impressions of the executants and witnesses in his index register. After payment of the registration fee, a delivery slip shall be issued with a future date for collection of this deed after its entry in relevant registers.
Once the registration fee is received and the delivery slip is issued, the process of entering the contents of the document in Book 1 is initiated. All the deeds are given a unique identification number. A deed once entered in the relevant Volume of Book 1 in accordance with Section 51 of the Registration Act, 1908, is then taken to the concerned Sub-Registrar once again, who shall fix his signatures and date to the endorsements made to the document under section 52 of 58 of the Registration Act, 1908. After the conditions mentioned in the Act are complied with, the registering officer shall endorse a certificate under section 60, signed, sealed and dated by such officer, which shall be the proof of the registration of the deed.
The personal presentation of the parties before the Sub-Registrar may be exempted in certain cases. In such a case, the sub-registrar may either himself examine such persons or appoint a commission to act on his behalf. The documentation shall include: 1. The Original Sale Deed and a Photo Copy, executed/signed in original. 2. Title deed of the vendor. 3. The No Demand Certificate. 4. The Fard Jamabandi. 5. Non-encumbrance certificate (obtained in Procedure 1) 6. Certified copy of the resolution by the two companies, especially by the Company who is selling the land. 7. Computerized National Identity Cards of the representatives 8. Certified copy of Certificate of Incorporation of the Company. |
| Procedure 11. | Mutate title at the Revenue Officer |
| Time to complete: | 10 - 20 days |
| Cost to complete: | PKR 100 |
| Comment: | The buyer takes the sale deed to the concerned Revenue Officer for affecting entries of mutation in his favor in the Revenue Record. The Revenue Officer, after making the due scrutiny, enters the mutation as to this transaction and as to the ownership of the buyer. The buyer obtains the copy of this sanctioning of the mutation which further ratifies and affirms his title qua the property in question. |
| Procedure 12. | Enter sale deed at the Excise & Taxation Department |
| Time to complete: | 10 days |
| Cost to complete: | no cost |
| Comment: | The vendee takes the sale deed, along with a written application to the concerned Excise & Taxation Department and gets himself entered into their records as the owner. |