Pak Legal

Pakistani Property Law

Pakistani Property Law: What is it? What is the process of acquiring property and land?

Property law states that property belongs to whoever owns it. Without defining who owns the properties on earth, chaos will ensue. Over time, people became more aware of the importance of property ownership and its value. It refers to “a set of rules that individual countries or communities recognize as governing the actions of their citizens”. This set of rules may be enforced by the government by imposing penalties.

property Law

What Is the Process of Land?

The land is an immovable property. In addition, we interchangeably use the terms property and land. Pakistani law defines the rules and regulations regarding how land may be used and owned. The following is a simple definition of immovable property;

Law relating to Movable Property:

“Immovable property includes land and buildings, as well as the benefits that may arise from the land and things attached to it. “It’s just a general term for everything on earth.”

The Law Governing Moveable Property is:

We define the moveable property differently because it represents a different kind of property.

Property that is movable, but not immovable, falls under this definition. As a result, the movable property includes standing timber, crops that are growing, and fruit that is growing on trees.”

In Pakistan, who is allowed to own land?

Property and land are provincial subjects in Pakistan. Furthermore, each province has its own set of laws concerning property ownership. All citizens, including foreigners, can own property if they meet the necessary requirements. In accordance with article 23 of the Constitution,

“Every citizen shall have the right to acquire, hold, and dispose of the property in part of Pakistan.”

Additionally, according to article 172 of the Constitution;

In a province, the government has the right to possess any property that no owner has the right to own. In every other case, the Federal Government.”

Property Law

How Does a Land Record Work?

Land records are land registers. Additionally, it discusses the Record of Rights (RoR). Additionally, it explains how the property appears and the boundaries of its ownership. Furthermore, the land record is necessary for taxation and other legal purposes. It is possible to determine how much land each person owns in the village using the land records. 

According to UN-Habitat,

As soon as the rights of the land are established, a comprehensive document called Misal-e-Haqiat is drafted, along with the Jamabandi (done every four years) and the Mutations Register (Intaqalaat).

What is the process of transferring property rights?

According to the 1882 Transfer of Property Act:

The sale of a property involves the exchange of its own for a price or a promise of a price.

Pakistani citizens are also entitled to own property as one of their fundamental rights. According to the law,

Assets are the property of their lawful owners, who can sell, gift, mortgage, mortgage, or give them away. These rights are considered to be part of ownership. During the devolution of inheritance, property rights are also transferred along with sales, gifts, etc.

The following laws govern transfer procedures;

  1. In 1967, the Land Revenue Act was passed. All provinces have adopted this act with some minor changes. Rights records are governed by this law. In addition, it governs the transfer of rights through mutations;
  2. As a general law, the Transfer of Property Act 1882 regulates and describes property transfers (sale, lease, mortgage, etc.);
  3. In accordance with the Registration Act of 1908, detailed procedures are outlined for registering documents. Registration includes the registration of transfer deeds and sales deeds; 
  4. Laws adopted by private housing societies, cooperatives, and mutual societies. Boards of the cantons, etc.”

TRANSFER OF PROPERTY IN PAKISTAN: LEGAL REQUIREMENTS

Below are two of the most common property transfer cases in Pakistan.

  1. Someone received an immovable property as a gift
  2. Inheritances after death

Let’s take a closer look at these scenarios.

1. Gifted Property that is Immovable

The act of transferring property before the owner’s death is called a “gift.” When a property is gifted, ownership is transferred immediately and is completed upon receiving the gift. Immovable property is often given as a gift without considering its value and price. According to Pakistani law, a person of sound mind has the right to dispose of their property by gift. An immovable property cannot be gifted under undue influence, dominance, deceit, or coercion. 

The following are some of the main points about the validity of a gift of property in Pakistan.

  • An immediate divestment of the donor’s ownership interest in a particular property
  • Declaration of the gifted property by the donor
  • Acceptance of the gift by the recipient.
  • Gifted property is delivered by the donor to the recipient

To give your own property as a gift to a friend, acquaintance, or family member, you will need the following documents:

  • Letter of Allotment Original
  • Certificate of Tax Clearance
  • CNIC photocopies (attested)
  • Deputy Director’s official seal is attached to the statement recorded before him
  • Building Control Authority’s NOC
  • Bank draft for PKR 3000 or PKR 5000 (depending on the case)

2. Assignee’s Property after Death

Upon the owner’s death, property rights are automatically transferred to the legal heirs. Here are some key highlights of Pakistan’s inheritance law that govern the phenomenon of changing ownership of properties.

The Transfer of Property Act or Islamic law, irrespective of sect, do not recognize a Will, so all shares are distributed to legal heirs.

Depending on the relationship between the devisee and the deceased, the share of the estate is distributed to each devisee. Usually, blood relatives have the closest relationship with the deceased. Since this phenomenon has many facets and angles varying from case to case, it may not be possible to summarize all possible scenarios for share distribution here.

Any property owner can donate it during their lifetime. Donations can be made to individuals, welfare trusts, or humanitarian organizations as gifts, donations to charities, or donations to individuals, welfare trusts, or humanitarian organizations. The decision to donate the property cannot be challenged even after the donor’s death.

How and when can the state acquire land?

Pakistan is allowed to acquire land anywhere in the country. However, there are some restrictions and specifications. In light of this, the constitution article 23 of 1973 is very easy to understand. 

According to the constitution, all citizens have the right to acquire, hold, and dispose of the property in any part of the country. Moreover, the law may impose reasonable restrictions that serve the public interest.”

Article 24 of the constitution stipulates that no one other than the law can deprive a property owner of it.

Therefore, Pakistan’s constitution ensures that its citizens have the right to own property. 

The government keeps a record of property ownership as well. In addition, as stipulated in the constitution, the government is also entitled to acquire land when necessary.

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