Categories
Property Law

Rights of Tenant under Sindh Rented Premises Ordinance

There are also rights of Tenant under the Sindh Rented Premises Ordinance.

Tenant must ensure that he makes payment of the rent either through a crossed cheque, or where payment is made through some other mode, then a receipt must be obtained from the landlord. In case the landlord unlawfully or unjustifiably attempts to evict the tenant, the tenant may file a case in the competent court of law in Karachi in addition to availing other legal remedies as advised by his counsel.

Generally Landlord pressurize the Tenant to execute tenancy agreement for 11 months only, by saying and making estate agent as witness that this is law to execute agreement for 11 months only. There is nothing mentioned in any law book that the tenancy agreement must be executed for eleven months only.

Under the Law rent of the premises is to be increased 10 per cent after every eleven months. It is also an other practice is available in Karachi which is in violation of Sindh rented premises ordinance, that the landlord pressurizes the tenant to enhance rent at 10 per cent after every eleven months.

As per Law rent is to be increased 30 percent after completion of three months, in this way landlord increase rent as per his choice after eleven months which is totally illegal and unjustified, the tenant can claim for recovery of amount which is received by landlord in violation of law.

The tenant can also apply for fixation of fair rent if the landlord is receiving rent more then market value prevailing in locality.

There are many other rights available to the tenant, which can be discussed in detailed.

Irfan Mir Halepota & Associates

Karachi Office

Office # E-26, Executive Floor,
Glass Tower,
Khayaban-e-Iqbal (Clifton Road),
Teen Talwar, Clifton,
Karachi, Sindh,
Pakistan.

Telephone No.  +92-21-35642634
Mobile Phone No. +92-321-2057582
Mobile Phone No. +92-300-8233580

Email: info@irfanlaw.com
Website: https://www.irfanlaw.com

You can Contact Us for detailed consultation.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Telephone: 0321-2057582

Regular Website:  https://www.irfanlaw.com

 

 

Law Firm based in Karachi and Islamabad having well experienced Advocates and Lawyers in the fields of Civil Litigation and Property Law.
E-26, Executive Floor, Glass Tower, Clifton,
Karachi, Sindh
PK
Phone: +923212057582

Supreme Court of Pakistan, Islamabad. The Registry of the Supreme Court is also at Karachi.

Categories
Property Law

The Illegal dispossession Act, 2005

The Illegal dispossession Act, 2005 is an Act to cure the activities of the property grabbers
WHEREAS it is obedient to protect the lawful owners and occupiers of immovable properties from their illegal or forcible dispossession therefrom by the property grabbers;

The Illegal dispossession Act, 2005 extends to the whole of Pakistan and It shall come into force at once.

Section 3 of the act describes the Prevention of illegal possession of property, which says that no one shall enter into or upon any property to dispossess, grab, control of occupy it without having any lawful authority to do so with the intention to dispossess, grab, control or occupy the property from owner or occupier of such property.

Sub Section 2 of the acts says that whoever contravenes the provisions of the sub-section (1) shall, without prejudice to any punishment to which he may be liable under any other law for the time being in force, be punishable with imprisonment which may extend to ten years and with fine and the victim of the offence shall also be compensated in accordance with the provisions of section 544 of the Code.

The procedure of Investigation is that upon a complaint the Court may direct the officer-in-charge of a police station to investigate and complete the investigation and forward the same within fifteen days to the Court. If Court may extend the time within which such report is to be forwarded in case where good reasons are shown for not doing so within the time specified in this sub-section.

If the Court is satisfied that none of the persons are in possession immediately before the commission of the offence; the Court may attach the property until final decision of the case. In case of attachment, the methods of its management safeguard against natural decay or derioration shall be determined by the Court.

If during trail the Court is satisfied that a person is found prima facie to be not in lawful possession, the Court shall as an interim relief direct him to put the power or occupier as the case may be, in possession.

On conclusion of trail, if the Court finds that an owner or occupier of the property was illegally dispossessed or property was grabbed in contravention of section 3, the Court may, at any time of passing order under sub-section (2) of that section direct the accused or any person claiming through him for restoration of the possession of the property to the owner or , as the case may be, the occupier, if not already restored to him under section 7.

The Court may, where it is required, direct the officer-in-charge of the police station for such assistance as may be required for restoration of the possession of the property to the owner or as the case may be, the occupier.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

For more information please visit our website

Website Home page:  http://www.irfanlaw.com

Contact:          +92 (0)321 205 7582

Law Firm based in Karachi and Islamabad having well experienced Advocates and Lawyers in the fields of Civil Litigation and Property Disputes Settlement Law.
E-26, Executive Floor, Glass Tower, Clifton,
Karachi, Sindh
PK
Phone: 03212057582

Categories
Property Law

CANTONMENTS RENT RESTRICTION ACT, 1963

Cantonments Rent Restriction Act, 1963 is an Act to make provisions for the control of rent class of buildings within the limits of the cantonment areas and for the eviction of tenants there from. It is expedient to make provision for the control of rents of certain class of buildings within the limits of the cantonment areas, for the eviction of tenants therefrom.

As per definations in the Cantoment Rent Restriction Act, 1963 ‘building’ means any building or part of a building, whether residential or not, together with all fittings and fixtures therein, if any, and includes any gardens, grounds, garages and outhouses attached or appurtenant to such building or part, and vacant land, but does not include any place of religious worship;to.

 

The provisions the of the Cantonments Rent Restriction Act and any rule or order made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force, or in any instrument or document.

Every application under the Cantonments Rent Restriction Ac shall be filed with the Controller who shall either hear it himself or assign it to an Additional Controller for hearing and disposal.

 

The Controller shall, on an application by the tenant or landlord of building, fix fair rent for such building after holding such enquiry as he may think fit. The fair rent shall be fixed after taking into consideration the factors i.e.  the rent of the same building or similar accommodation in similar circumstances prevailing in the locality at the time of, and during the period of twelve months prior to the date of, the making of the application. In some cases the rise, if any, in the cost of construction and of the repair and maintenance charges as well as changes in the existing taxes after the commencement of the tenancy; and the rental value of the building as entered in the latest assessment list of the Cantonment Board as proposed under Section 72 of the Cantonments Act, 1924 (II of 1924).
The fair rent fixed shall be payable by the tenant from the date to be fixed by the Controller which shall not be earlier than the date of filing of the application.

Every dispute between a landlord and his tenant relating to the increase of rent shall be decided by the Controller. Provided that the Controller shall in no case allow any increase beyond seven and a half per centum of the cost of the addition, improvement or alteration made in the building or, beyond the amount of the additional tax payable by the landlord, as the case may be.

No landlord shall, without just or sufficient cause cut off or withhold any of the amenities enjoyed by the tenant. A tenant in occupation of a building may, if the landlord has contravened the provisions of this section, make an application to the Controller complaining of such contravention. If the Controller, on inquiry finds that the tenant has been in enjoyment of the amenities and that they were cut off or withheld by the landlord without just or sufficient cause, he shall make an order directing the landlord to restore such amenities, or authorising the tenant to provide the same and to incur such expense thereon as the Controller may specify, and any sum so spent by the tenant shall be adjustable against the rent payable by the tenant in respect of that building.

After the commencement of the Cantonments Rent Restriction Act, no tenant, whether before or after termination of his tenancy, shall be evicted from the building in his possession or occupation in execution of a decree passed after such commencement, except in accordance with the provisions of this section. A landlord who seeks to evict his tenant shall apply to the Controller for an order in that behalf, and the Controller may, after giving the tenant a reasonable opportunity of showing cause against the application, make on order directing the tenant to put the landlord in possession, if he is satisfied that the tenant has not paid or tendered the rent to the landlord within fifteen days of the expiry of the time fixed in the agreement of tenancy for payment of rent, or in the absence of such agreement, within sixty days following the period for which the rent is due; or any other order as he deems fit as per law.

You can Contact Us for detailed consultation.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Telephone: 0321-2057582

Regular Website:  https://www.irfanlaw.com

Supreme Court of Pakistan, Islamabad.

For rapid response you can also submit your Query at WhatsApp on +92 321 205 7582 For a Legal Advice
 
Law Firm in Pakistan dealing with Civil Litigation, Commercial, Intellectual Property, Real Estate and Family Laws of Pakistan.
E-26, Glass Tower, Clifton
Karachi, Sindh
PK
Phone: +92 321 205 7582


Categories
Property Law

Property Disputes Settlement in Karachi

Irfan Mir Halepota & Associates is a leading Law Firm in Karachi, Pakistan, which is well known to resolve all types of the disputes of Real Estates sale or purchase of Distress Properties in Karachi, Pakistan. We can clear and solve any kind of disputes related to your property, because the word “impossible” is not available for lawful owner of the property and person who has actual right, we believe when there is a will, there is a way.

Today in Real Estates and Properties, there are so many types of disputes like there may be disputes between family members, fake-forged and fabricated documents, rights of partition, Forceful occupation, Forceful Trespassing, Landlord and Tenant disputes, back steps from sale agreements, shortage of finance, Collaboration Dispute, Multiple sale of the same property, pending litigation, bank mortgage, private loan, private mortgage etc. creating a bad name of your valuable property in the market.

All the Real Estates with any of aforesaid dispute can be resolved by adopting proper procedure of law by taking care of in all respects for clearing all the disputes. All the disputes are taken care of by Well Experienced, Expert and Able Professionals Lawyers to resolve as per property Laws of Pakistan.

Honesty, Transparency and Secrecy of Every transaction and dealing is the basis of our success in the society.

We are skilled and professionally qualified team lawyers undertakes personal pain for their respective clients, with full attention, understanding all aspects and sensitiveness of the client’s Requirements in order to provide complete satisfaction to their Clients. We charge as per the seriousness and nature of dispute and our efforts made for resolving the same.

 

You can Contact Us for detailed consultation.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Telephone: 0321-2057582

Regular Website:  https://www.irfanlaw.com

Law Firm based in Karachi and Islamabad having well experienced Advocates and Lawyers in the fields of Civil Litigation and Property Law.
E-26, Executive Floor, Glass Tower, Clifton,
Karachi, Sindh
PK
Phone: +923212057582

Supreme Court of Pakistan, Islamabad. The Registry of the Supreme Court is also at Karachi.

Categories
About us Litigation Property Law

Legal Notice

Irfan Mir Halepota & Associates believe that disputes can be resolved by negotiations, conferences by dedicated efforts in a cost effect way.  Hence we always endeavor to resolve disputes by initiating negotiations or by cautioning other party to settle out of court by way of Legal Notices. If no positive response is received after legal notice then matter is to be taken up in the court of Law.

We are commonly engaged by our clients to issue legal notices for recovery matters, default in installment of a financial facility, default in payment schedule, breach of terms and conditions of contracts and guarantees, violations of constitutional provisions of Pakistan and matters of libel and slander under the Law of Tort and Defamation.

Hence upon excessive demand and  wide range of our clients we are also now facilitating our clients to furnish instruction for issuance of legal notices online. This service is introduced in Pakistan for the first time by our Law Firm and we are proud to lead our Nation in the field of Law.

What we can do online for you?

  1. Draft Legal Notices.
  2. Draft Reply to Legal Notices.
  3. Draft Public Notices.

How to Engage us?

This document can be drafted and be made available for Rs. 10,000 (Pak Rupees). Including all delivery charges in Pakistan. Please note that if more than Carbon Copies to more than two recipients will be charged at Rs. 1000/- per five recipients.
You can choose to have your documents emailed to you, or sent to the recipient by first class post. We aim to prepare your documents by the end of the three working days, although in practice we normally start preparing your document within hours of receiving payment.

You can Contact Us for detailed consultation.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Telephone: 0321-2057582

Regular Website:  https://www.irfanlaw.com

Law Firm based in Karachi and Islamabad having well experienced Advocates and Lawyers in the fields of Civil Litigation and Property Law.
E-26, Executive Floor, Glass Tower, Clifton,
Karachi, Sindh
PK
Phone: +923212057582

Supreme Court of Pakistan, Islamabad. The Registry of the Supreme Court is also at Karachi.

 

Categories
Property Law

SALE, PURCHASE AND TRANSFER OF PROPERTY REAL ESTATE IN PAKISTAN

SALE, PURCHASE AND TRANSFER OF PROPERTY/REAL ESTATE IN PAKISTAN

OUR LAW FIRM advises and assists clients in sale, purchase and leasing of commercial, agricultural and residential properties in Karachi, Paksitan. We successfully complete the whole process of verification and registration of title documents, procurement of revenue documents “Farad” and get mutation of names in the revenue record.

In developed countries people sell, purchase and transfer property through Law Firms and get avoid from fraud and legal complications. But unfortunately in Pakistan, people directly go for this business, without verification of the title deeds and legal status of the property and get trapped in frauds and legal complications.

After visiting the properties shown by Estate Agent or Property Consultants. The best and safe way to sell, purchase and transfer of property is firstly to consult with lawyer for verification and checking the legal status of the property and then to enter into full written agreement by setting out all the terms and conditions in it. This would save you from property frauds, legal complications and loss of your money.

We initiate speedy legal proceedings against the offenders of Land Grabbing, Illegal Possession of property and Transfer of property by fraudulent manner.

OUR Law Firm provides clients with the best legal services to handle business transactions and deals of all sizes, including contracts and/or agreements pertaining to buying and selling property, leasing for the lessee or lessor, sales and maintenance of real estate and farms and vacant land.

OUR Law Firm has a wide range of practice areas in relation to registration. We guide clients in accordance with the Registration Laws of the Real Estate applicable in Pakistan. In collaboration with our partners, we empower clients to obtain the rights on their ownerships.

OUR Law Firm has experienced litigators, who appear for clients before all levels of the Pakistani courts in order to fight on behalf of them, for both the plaintiff and the defendant, before all stages of arbitration panels and the various forms of the ADR as well as representing them in all attempts to attain an amicable settlement with their opponents.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Submit Your Query For a Legal Advice

For rapid response you can also submit your Query at WhatsApp on +92 321 205 7582 For a Legal Advice
 
Law Firm in Pakistan dealing with Civil Litigation, Commercial, Intellectual Property, Real Estate and Family Laws of Pakistan.
E-26, Glass Tower, Clifton
Karachi, Sindh
PK
Phone: +92 321 205 7582


Categories
About us Litigation Property Law Real Estate Deals

Enforcement of Foreign Judgement & Decree in Pakistan

Enforcement Foreign Judgement Decree Pakistan KarachiEnforcement of Foreign Judgement in Pakistan. The Section 44.A. describes the procedure for enforcement of Foreign Judgments in Pakistan, which is reproduced as under :-

(1) Where a certified copy of a decree of any of the superior Courts of the United Kingdom or any reciprocating territory has been filed in a District Court, the decree may be executed in [Pakistan] as if it had been passed by the District Court.

(2) Together with the certified copy of the decree shall be filed a certificate from such superior Court stating the extent, if any, to which the decree has been satisfied or adjusted and such certificate shall, for the purposes of proceedings under this section, be conclusive proof of the extent of such satisfaction or adjustment.

(3) The provisions of section 47 shall as from the filing of the certified copy of the decree apply to the proceedings of a District Court executing a decree under this section, and the District Court shall refuse execution of any such decree, if it is shown to the satisfaction of the Court that the decree falls within any of the exceptions specified in clauses (a) to (f) of section 13.

Explanation 1.-“Superior Court” with’ reference to the United Kingdom, means the High Court in England, the Court of Session in Scotland, the High Court in Northern Ireland, the Court of Chancery of the County Palatine of Lancaster and the Court of Chancery of the County Palatine of Durham.

Explanation 2.-“Reciprocating territory” means 1[the United Kingdom and such other country or territory as] the 3[Central Government) may, from time to time, by notification in the 3[official Gazette], declare [to be reciprocating territory for the purposes of this section; and “superior Courts”, with reference to any such territory, means such Courts as may be specified in the said notification.

Explanation 3.-.”Decree”, with reference to a superior Court, means any decree or judgment of such Court under which a sum of money is payable, not being a sum payable in respect of taxes or other charges of a like nature or in respect of a fine or other penalty, and

(a) With reference to superior Courts in the United Kingdom, includes judgments given and decrees made in any Court in appeals against , such decrees or judgments, but

(b) In no case includes an arbitration award, even if such award is enforceable as a decree or judgment.

Submit Your Query For a Legal Advice

 
Law Firm in Pakistan dealing with Commercial, Intellectual Property and Litigation Laws of Pakistan.
E-26, Glass Tower, Clifton
Karachi, Sindh
PK
Phone: +92 321 205 7582

Categories
Property Law

The ‘Agreement of Sale’ or ‘Sale Agreement’

Top Law Firms in Karachi PakistanWhether you are purchasing a plot for construction of a home or an apartment from a builder, the sale agreement is a document that you will need to scrutinise minutely before signing. Once signed, you will not be able to counter anything that is on it.

Sale AgreementThe sale agreement being a technical document will have a series of terms that you need to understand thoroughly. Sale, for example, is a transaction where money is exchanged, in part or in whole, for the transferring of ownership of a particular piece of property in whole.

There is nothing explicitly mentioned in the law about the sale agreement being a written one. However, it is now common practice and even a practical thing to do so, especially if the document is to hold water in a court of law. An important thing to do is to get the agreement registered, as a non-registered document does not have any legal bearing and any deal made on the basis of it is considered void.

Clauses

There are several inclusions or what are called clauses in the sale agreement. It will describe the property, include contact details of the seller and the buyer, the negotiated price will be mentioned and also how this payment is being disbursed. The time frame for the payment will be included. There will also be a provision for the payment of stamp duty and for the account of the property title.

The clauses in a sale agreement are important because they outline everything that will go into making this a successful transaction, which is completely legally sound. The contract will tell you if the payment is to be made in cash, in part or an agreement for it to be paid partially in the future has been agreed on.

Some of the clauses will cover municipal taxes that are due by the person buying, as well as maintenance charges and in the case of an apartment being purchased payment towards the building society.

Payment terms: The onus is on both the buyer and seller to come to a mutual agreement on the price of the property and all other expenses that go towards the transfer of property. This has to be included and has to be agreed on by both the buyer and seller.

The time for the disbursement of the payment should also be included right up to the last instalment. The document will need to be scrutinised by lawyers from both sides and then signed by both parties.

Transferring property titleTransferring of property title: For a loan to be sanctioned, the property title is important.

This should be transferred to the buyer when the seller has got in hand the amount agreed on. The transfer is the last step in the whole process of buying the property. The property will have to be registered in the buyer’s name by the seller at the local registrar office.

Stamp duty: These rates are fixed by the relevant authorities and can vary with each State. The onus is on the buyer to ensure that the property has been registered in his name at the rate that the government has sanctioned for the transferring of the property.

Sale deedSale deed: This follows the agreement of sale and is an understanding between the seller and the buyer. Its contents need to be scrutinised by experts multiple times before you actually sign on it.

With the right kind of legal help to support you, there is no reason to fear the complexities of the agreement of sale. It is something that you can easily surmount.

You can Contact Us for detailed consultation.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Telephone: 0321-2057582

Regular Website:  https://www.irfanlaw.com

Supreme Court of Pakistan, Islamabad.

Categories
Litigation Property Law

Property Transfer & Conveyancing of Property

Property Transfer  &  Conveyancing of Property

We are well known for knowledgeable, professional and experienced attorneys in property law at Karachi, Pakistan. Our clients include private developers of Karachi and whole Pakistan, Pakistani & International development companies, small businesses, shop keepers, landlords of office buildings in Karachi, warehouses and business parks etc. We also equally work for tenants as we do for landlords.

We recognize the commercial benefits of avoiding litigation and work with clients to achieve goals alternative ways i.e.mediation etc. However, if you have to litigate, we have an experienced team of litigators to defend your interests. We have extensive experience of the Singh High Court, District Courts of Karachi. We generally represents our clients on the following areas:

  • Injunctions and stay Orders.
  • Sale of Property disputes.
  • Annual Ground Rent disputes .
  • Construction and Building Plans disputes.
  • Leases & Licenses
  • Dilapidations and Dangerous Buildings
  • Lease renewals.
  • Property partnership disputesRegistration of Property and Registration of Sale DeedOur Team can assist our clients in registration of Property Documents before the concerned registrar of Firms.Online for Clients
    • Draft Sale Agreement or Agreement to Sell Property.
    • Draft Sale Deeds.
    • Draft Mortgage Deeds.
    • Draft Deed of Relinquishment.
    • Draft Gift Deeds or Oral Declaration of Gifts under Muslim Personal Law.
    • Dilapidations and Dangerous Buildings
    • Draft Deed of Redemption.

 

 

How to engage us without visiting or visiting our office?

Above document can be drafted and be made available for Rs. 20,000 (Pak Rupees). Excluding all delivery charges, as well as cost of judicial Stamp Paper.
You can choose to have your documents emailed to you, or sent by first class post. We aim to prepare your documents by the end of the three working days, although in practice we normally start preparing your document within hours of receiving payment.

If you have any quires, or wish to place any order by post please feel free to contact us.


Categories
Online Legal Services Property Law

Safe Way of Purchasing and Selling Property in Pakistan

In developed countries peoples sell, purchase and transfer property through lawyers and get avoid from fraud and legal complications. But unfortunately in Pakistan peoples directly go for this business, without verification the title deeds and legal status of the property and get trapped in frauds and legal complications. The best and safe way to sell, purchase and transfer of property is firstly to consult with lawyer for verification and checking the legal status of the property. This would save you from property frauds and loss of your money.

Our law firm advise and assists clients in sale, purchase and leasing of commercial, agricultural and residential properties. We successfully complete the whole process of verification and registration of title documents, procurement of revenue documents “Farad” and get mutation of names (Intiqal) in the revenue record.

We initiate speedy legal proceedings against the offenders of Land Grabbing, Illegal Possession of property and Transfer of property by fraudulent manner.

 

Real Estate Related Laws of Pakistan

This overview explains procedure for sale/purchase of real estate in Pakistan, Gift of real estate in Pakistan, lease of real estate in Pakistan, mortgage of real estate in Pakistan and taxation of gains from real estate in Pakistan, taxation of real estate in Pakistan and set up of real estate investment trusts in Pakistan. These brief notes are for general guidance only and should not be taken as a substitute for thorough and professional legal advice.

Real Estate Related Laws of Pakistan

•The Transfer of Property Act, 1882

•Land Revenue Act, 1967

•Stamp Act 1899

•Registration Act 1908

Types of Real Estate in Pakistan

Sale of Real Estate in Pakistan

Sale of real estate in Pakistan normally takes place through a title document known as a Sale Deed, except in certain cases e.g. purchase of real estate in Defence Housing Authority (DHA) or in a housing society where sale deed is not executed for transfer of title in real estate and an allotment letter/transfer letter from the authority or the society, as the case may be, is deemed to be the title document. Some people, before execution of the sale deed, may opt to execute an agreement to sell. However, such agreement to sell does not transfer title to a property in favour of the vendee. It, nevertheless, does create a right in favour of the vendee, in case the vendor refuses to honour the terms and conditions of the agreement, to seek specific enforcement of the agreement to sell. Title in an immovable property is only deemed to transfer once such Sale Deed or title document has been executed. A sale deed must be affixed with requisite stamp duty and it must be registered with the relevant sub-registrar. After registration of the Sale Deed with the sub-registrar it must be ensured that a mutation of such sale is entered in the register of mutations kept and maintained by the patwari.

Purchase of Real Estate in Pakistan

Before purchasing real estate in Pakistan, a complete and thorough search in respect of title of the seller to the real estate must be carried out. A general practice is to investigate title of the current vendor and any previous owner(s). Original title document in favour of the vendor must be obtained alongwith other relevant documents including mutation in favour of the vendor, a fresh copy of fard, aks shajra and NOC/NEC as the case may be.

If the vendor is selling the property in the capacity of an attorney of the owner then it must be ensured that the power of attorney is affixed with appropriate stamp duty and it has been duly registered with the relevant sub-registrar. If possible, contact should be made with the owner(s) of the property and authenticity of the power of attorney must be confirmed. A holder of a forged and fabricated power of attorney may not be able to transfer a valid title in an immovable property to a third party.

Non-resident Pakistanis, overseas Pakistanis and foreigners may also purchase immovable property in Pakistan. Their presence in Pakistan at the time of execution of the title document is not necessary.

Lease/Renting out of Real Estate in Pakistan

Landlord’s Point of View

Landlord must ensure that lease of an immovable property is executed in writing. Lease of immovable property for a period of less than a year does not require compulsory registration. However, lease of immovable property for a period of more than a year must be registered.

If the tenant refuses to pay rent, or for any other reason as stated in the lease agreement and allowed under the law, the landlord may terminate the lease. If the tenant refuses to vacate the premises the landlord may file an ejectment petition before the relevant rent controller.

Tenant’s Point of View

Tenant must ensure that he makes payment of the rent either through a crossed cheque, or where payment is made through some other mode, then a receipt must be obtained from the landlord. In case the landlord unlawfully or unjustifiably attempts to evict the tenant, the tenant may file a petition before rent controller in addition to availing other legal remedies as advised by his counsel.

Gift of Real Estate in Pakistan

Gift of real estate in Pakistan must be made in writing. There is, however, a qualification to this general rule in case of a Muhammaden. A Muhammaden may make an oral gift of an immovable property. Although allowed under law, it is not recommended to make oral gifts of immovable property because it may become difficult to prove an oral gift. Where a gift deed is executed, it must be affixed with appropriate stamp duty and it must be registered.

An oral gift, in case of a Muhammaden, takes effect if all three of these under mentioned conditions are satisfied:

•Declaration of gift

•Acceptance of the gift by the donnee during the lifetime of the donor

•Transfer of possession of the subject matter of the gift by the donor to the donnee

Once all of the above-mentioned conditions are satisfied, then the fact of a gift is deemed to be established.

Mortgage of Real Estate in Pakistan

Legal Mortgage

A legal mortgage in respect of an immobile property may be created after execution of a mortgage deed. A mortgage deed must be affixed with appropriate stamp duty and it must be registered with the relevant sub-registrar.

Equitable Mortgage

An equitable mortgage in respect of an immovable property may be created simply by deposit of original title documents e.g. sale deed, allotment letter, etc., with the mortgagor. It is not required to be registered, however, a general practice is to get a lien marked in respect of such mortgage.

Real Estate Taxation in Pakistan

Taxation of Gains from Real Estate in Pakistan

The Constitution excludes legislation on taxation of capital gains from the purview of the federal government. The income tax law has also been harmonized with these constitutional provisions by excluding the immovable property from the definition of capital asset, whose gain is liable to tax.

Despite this, profits on some transactions concerning immovable property is taxable under the income tax law e.g. disposal of property acquired as a stock in trade or with commercial intent to make profit. However, gains realized on disposal of immovable property transferred as a consequence of family inheritance, gifts or without commercial motives, or the property held as a business capital asset are exempt.

Capital Value Tax on Real Estate Related Transactions in Pakistan

A Capital value tax at the rate of 2 percent of recorded value has been levied vide Finance Act, 2006. This is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property. However, where the value of such property is not recorded, the CVT is payable at Rs. 50 per square yard of land area. All transfers falling under the scope of purchase, gift, exchange, surrender, power of attorney and relinquishing the rights have been subjected to the capital value tax. However, transactions between spouses, parents, grand parents, brothers and sisters through gift and inheritance have been excluded from its purview.

Establishment of Real Estate Investment Trust in Pakistan

The concept of Real Estate Investment Trust has recently been introduced in Pakistan as an incentive for real estate investment in Pakistan. Any income of such trust is exempted from tax, subject to the condition that not less than 90 percent of its profit of the year is distributed amongst the unit holders.

Irfan Mir Halepota & Associates

Karachi Office

Office # E-26, Executive Floor,
Glass Tower,
Khayaban-e-Iqbal (Clifton Road),
Teen Talwar, Clifton,
Karachi, Sindh,
Pakistan.

 

Telephone No.  +92-21-35642634
Mobile Phone No. +92-321-2057582
Mobile Phone No. +92-300-8233580

Email: info@irfanlaw.com
Website: https://www.irfanlaw.com

You can Contact Us for detailed consultation.

Irfan Mir Halepota, Advocate Supreme Court of Pakistan.

Telephone: 0321-2057582

Regular Website:  https://www.irfanlaw.com

 

For rapid response you can also submit your Query at WhatsApp on +92 321 205 7582 For a Legal Advice
 
Law Firm in Pakistan dealing with Civil Litigation, Commercial, Intellectual Property, Real Estate and Family Laws of Pakistan.
E-26, Glass Tower, Clifton
Karachi, Sindh
PK
Phone: +92 321 205 7582