A Beginner’s Guide to Purchasing property in Karachi in 5 steps

A lot of people buy/sell property for the first time in their lives and have no one to guide them. Therefore, they get fooled by scammers and fraudulent property agents. Here is a step-by-step guide for buying or selling any kind of property, once you have finalized a property to buy or found a client for your property.

1. Conditional Token
2. Verification of Documents while Purchasing Property in Karachi
3. Part payment agreement
4. Newspaper Ad
5. Final Payment and Transfer

1st Step: Conditional Token

Give cheque as a conditional token and take receiving to avoid fraud. You may write at the back of the cheque “Conditional token not valid for cash only for verification of property Documents” Provide/Receive copies of documents for verification.

2nd Step: Verification of Documents while Purchasing Property in Karachi

Always check documentation, If it’s a transfer property, verify through the society office. If leased property, verify through the DC office. Society office will tell you 2 things: 1. History of ownership 2. Maintenance dues, e.g., electricity, gas, water. If the property is leased, get a search certificate from the DC office as well as the City Court to check the history of ownership, claims, and property financing. Check property tax dues from the property tax department.

3rd Step: Part payment agreement

Pay 10% payment to seller and check original documents on that day. Match history of ownership through transfer documents. Agree on at least Rs 500 stamp paper so that it has some legal importance or is claimable. If the seller adds a clause to forfeit 10% payment if you fail to clear dues on time, do not agree because it’s against Shariah. If it’s a leased property, advance tax and stamp duty are paid by the buyer. Gain Tax (3% for filer, 12% for non-filer), town tax paid by seller. Documentation charges, e.g., stamp paper, are paid by the buyer

4th Step: Newspaper Ad

Newspaper Ad at least 7 days before property transfer. Make a file of your original NIC copies, seller NIC copies and pictures, newspaper ad and part payment agreement, and copy of original documents without the cross.

5th step: Final Payment and Transfer

Make a pay order and provide a copy to the seller for verification. Transfer through DC office if leased property, transfer through society office if transfer property. The seller will be present with the original NIC and Original file. Purchaser will be present with original NIC and Original pay order.