If you’re interested in buying property in Pakistan, then you’ll have to take one extra step and learn all the local terminologies used by seasoned investors to close a deal and take care of all the prerequisite procedures associated with the sale and transfer of a property. The two key terms that you must understand in this regard are registry and inteqal. While the terms seem daunting, we’re here to help you understand the differences between registry and inteqal, so you know when to go for which one or whether you need to complete both after finalising a deal.
So, what is a registry, and what is inteqal? Let’s discover the differences!
What is Registry?
Irrespective of whether you’re buying a plot in Islamabad or a house in Karachi, the process of buying property remains the same. You research the market, visit all the potential homes that catch your eye, and finally decide on the one that you want as your future abode. So, what’s next?
Well, in most cases, you will then end up talking to the seller, and finalising the deal. As is customary with real estate transactions, they’re usually done on paper to ensure that they are legally viable if you need to prove your ownership at a later date.
This particular process of creating a sale deed, claiming legal rights on a property via a proof of ownership, and registering a sale under your name is known as Registry or Bay-e-Nama.
Process of Property Registration in Pakistan
Now that you know what is a registry, let’s discuss how you can apply for it. As per the State Bank of Pakistan, the process of property registration in Pakistan involves the following steps:
- Placing an advertisement in the most circulated daily newspapers to invite objections to the sale of a particular property (particularly in case of commercial properties) – Can take up to a week with a cost of PKR 3,000 (approx.)
- Verification of the seller’s documents and rights to sell any particular property (Done by following up with the local land registration offices)
- Obtaining a ‘No-Objection Certificate’ (NOC) which declares that the seller is permitted to sell the particular property – usually acquired from the Town Nazim within a day
- Hiring a lawyer or a deed writer for drafting the agreement related to the sale/purchase of the concerned property – Takes a day with a cost of PKR 5,000 (approx.)
- Payment of all dues, including stamp duty (3% of property value), Capital Value Tax (CVT) – (2% of property value), registration fee (1% of property value), and Town Tax (1% of property value) – usually done in a day
- Taking the receipt of payment to the Stamp Office of the government, where a stamp paper is issued, officiating the sale of a property – No additional costs and can be done in a day
- Submitting the stamp paper to the Registrar’s office to register the transfer of property ownership – Process is quick and free of cost once you’ve made all the earlier payments
This concludes the process of property registration in Pakistan. Please note that processes and fee percentages may differ slightly, based on the requirements of your provincial government.
What Is Inteqal?
Since we’re discussing the differences between registry and inteqal, we will also need to give you an insight into what is inteqal. Well, in the simplest of terms, after you register the sale of a property, you also need to get the title deed of the property changed to your name. Thus, you will need to contact a local municipal governing body to record the change in ownership. This process is known as Inteqal or Mutation, and the document is commonly called a conveyance deed.
Process of Inteqal (Mutation)
Once you have registered the sale of a property, here is the process of inteqal as per the State Bank of Pakistan:
- Visit the Sub-Registrar’s office of the particular area where your property is located
- Submit your registry/sale deed, identification of both the buyer and the seller, the original title deed of the seller, and a Power of Attorney (if the original owner has authorised someone else to sell the property on their behalf)
- Obtaining a receipt (issued immediately), and collecting the deed (issued in around a month)
- Transferring all property taxes, utilities, and municipal services to the buyer’s name (done by the buyer)
You now know the process of inteqal and how to go about it, but what are the key differences between registry and inteqal? Let’s find out.
Differences between Registry and Inteqal
|– Also called Bay-e-Nama||– Also called Mutation|
|– Sale Deed||– Conveyance Deed|
|– Mandatory after a sale||– Optional after a sale|
|– Records sale of property||– Records change of ownership|
From the above, we can gather that registry is a sale deed and inteqal/mutation is a conveyance deed, but are both equally necessary and what is it that sets them apart? Well, here are some things to consider:
- Registry legalises the actual sale of a property but does not convert the property in your name on local records. Thus, without inteqal, you will be unable to sell the property in the future since you are not its true owner.
- Inteqal transfers ownership of the property and does not require a sale for that to happen. All inherited and gifted properties must also undergo this process to ensure that the new owner of a particular property is officially recorded as one too.
- There can be several reasons why you might opt for a change of name of the owner of a property, including the sale of a property, Thus, the sale deed is also a type of conveyance deed, and a registry is one of the many reasons why you might want to opt for inteqal.
- It is also important to note that a registry is compulsory to legalise a sale, while inteqal is an optional process that should ideally be undertaken to avoid problems with the resale of the property in the future.
While the differences between registry and inteqal are few, you should know and understand their importance to make sure that you will not face any unnecessary hindrances while reselling the property you plan on owning. This is why it is recommended that you opt for both from the start.
If you have any confusion or queries, drop us an email at firstname.lastname@example.org, and we’ll get back to you promptly. For more property-related blogs, keep following Zameen Blog, Pakistan’s leading property blog.