Financing opportunities for new businesses are limited if they do not have registered property, used by banks as collateral. The same is true for expansion of existing and established businesses. World over, economies that rank well on the ease of registering property tend to have simple procedures, effective administrative time limits, fixed registration fees, low transfer taxes and online registries.
The Sindh Government is doing all to make it simple for businesses to register their properties.In this regard, the following reforms have been taken through provincial departments:
Board of Revenue Sindh
- Statistics regarding land disputes published on sindhzameen.gos.pk
- Fee schedule for accessing maps of land plots which made publicly available
- Overall time required to register property in Karachi reduced from 208 days to just 17 days – A 92% reduction
- With Digital Scanning Unit replacing microfilming technology, time spent at the Sub-Registrar Offices reduced by 96%
- 50% archival registries of Karachi digitized
- Title search facility available online through LARMIS
- Standardized Registration Templates and Tax Calculator available online
- Online Complaint Management System & UAN available at 111-267-467
- Energy department amended its SOP to reduce time taken by Electric Inspector for inspections to 3 days from 14 for new connections.
Online Tracking System of Property Deeds
By Board of Revenue Sindh
Now you can check the status of your Registry at every stage of the registration process:
- Scan QR Code from Registration Token to open online interface
- Insert token number in the search bar to view status of the document
- System generated token with QR code
- Online Search Interface
- Management Dashboard for effective Monitoring & Control
- Live statistics
Useful Links: BoR https://sindhzameen.gos.
NOC is a document in favor of the owner of property verifying the ownership of property and certificate of the fact that property is free of any kind of objection on the date of issuance of NOC.
NOC is issued on request of owner of property by the authorized officer of land owning agency.
For example in case of any land in a District, the Deputy Commissioner is the authorized officer for the lands coming under ambit of Board of Revenue.
Other land owning agencies like KDA, DHA and others issue same kind of NOC on request of owner for purpose of sale.
The time it takes for the NOC is 7 days.
There is no need to announce such transactions as required under law, but in some rare cases where authorized officer of land owning agency has doubts regarding authenticity of ownership rights or the buyer wants to remove any such doubts through publication in newspapers. The registration act 1908 does not require it as a mandatory step.
Actual ownership can be traced through record of registration offices and if the previous registration has been recorded by mutation in record of land owning agency then actual ownership along with ownerships prior to previous transactions can be ascertained.
As a part of the due diligence procedure, it is a common practice to search the books and verify whether the counterpart actually owns the property.
The parties to an agreement can now draft sale purchase agreement as BOR has now made sample sale purchase agreement available online https://sindhzameen.gos.pk/demo_Registries/templates.aspx. Although it is common practice in Pakistan to hire a lawyer or a deed writer to draft the sale purchase agreement, but in terms of question of law, the parties to agreement can draft or reduce into writing the terms and conditions of sale purchase agreement or they can hire an agent or lawyer to serve the purpose. So it is at discretion of parties.
BOR has introduced online Property Tax Calculator (PTC) at https://sindhzameen.gos.pk/eval/ which can assist you to calculate all the payments to be made as part of the property registration process. The PTC provides a printable challan with details of all applicable taxes, their percentages, applicable rules and amounts. All payments are made to the Government Treasury or National Bank of Pakistan.
Detailed description of payments is given here as under:
(i) Conveyance stamp duty 3% of property value.
(ii) The capital value tax (CVT) decreased from 4% to 2.5% of the property value (Sindh Finance Act, 2010 which came into force on July 1st, 2010 amending the Sindh Urban Immoveable Property Tax Act, 1958, section 4. After the 18th constitutional amendment (April, 2010), the CVT on property was transferred to the provincial governments. CVT 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. 100 per square yard of land area.
(iii) 1% of property value for the registration fee.
(iv) 1% of the property value for the Town Tax Fees is paid at the Government Treasury or National Bank of Pakistan, an autonomous bank jointly owned by Government of Pakistan and public, who issue receipt of money which is taken to the Stamp office of the Government. The receipt of payment is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Such typed stamp paper will be presented later before the Registrar, who registers the change of ownership. It takes 1 calendar day for the payment to be made. Total cost incurred is 2% of property price (stamp duty) + 1% of property price (registration fee) + 1% Town Tax + 2.5 % of the property price (Capital value tax). Capital value tax is not included into cost estimates.
The receipt of payment obtained is taken to the Stamp Office of the Government. The Stamp office will, upon production of receipt, issue a stamp paper of the value (money deposited) on the Sale Deed. Use our online templates at https://sindhzameen.gos.pk/demo_Registries/templates.aspx to prepare your sale deed and print at the Stamp Paper and present before the Registrar, who registers the change of ownership if it’s complete in all respects. It takes one calendar day and there are no costs involved.
The conveyance deed must be executed before the registering authority. Execution of the deed is done before the Sub-Registrar of Conveyance/Assurances of the area, official responsible under the Registration Act. Registration of the deed automatically follows the execution of sale deed. A receipt is issued immediately, but the deed is delivered a few weeks later. The name of the buyer is recorded in the new deed, showing the change in ownership. The documentation shall include:
• Conveyance/Sale Deed (stamped after payment in Procedure 4)
- ID of parties
- Original title deed of seller
- If the parties have authorized someone else through a power of attorney, the power of attorney in original with copies.
Once deed is admitted by the sub-registrar, it is considered as registered and sent for the final step of scanning such deed and making part of permanent record repository of Board of Revenue in the Digital Scanning Unit of Registration department. The registered deed once scanned at DSU is sent back to office of the sub-registrar concerned and can be collected by the party as final legal registered record of ownership of the property.
Once the registration process is completed, and the sale deed has been collected from the registrar office, the mutation processes is carried out at the relevant land owning authority for transfer of ownership. The mutation is the process of obtaining the new title document. A property mutation is simply the change of title ownership under certain conditions such as sale/purchase or death of an owner and even if the property is bought through a Power of Attorney (PoA). Through mutation, while the new owner gets the property in his name, the government is able to charge property tax from the right owner.
The office of the concerned Sub-Registrar of the area.
Majority of record kept before introducing digital scanning units was kept in paper and was microfilmed.
Since July 2016, the registered documents are scanned & indexed and the record is maintained in digital form in the centralized Tier III Data Center through the Digital scanning units at Divisional Level including Karachi. The archival records are also being digitized and more than 50% of the archival registries are also digitally scanned & indexed and searchable online at https://sindhzameen.gos.pk/demo_Registries/RegisterCNIC.aspx