Things to learn before buying a property | Pakistan Property Council

Question: Investment in buying a property is good as everybody talks about it?

Answer: Mostly yes if property is bought wisely by full and complete statistical evaluation based on timing, risk and reward. Professional property investment advisor has a key role if he is sincere with you or else you yourself become a professional by being trained in a shortest possible time with our training, seminars, books, videos, feedbacks, research and solutions. Investing in a property is good because

History has proved it to be profitable
Property prices will increase with the passage of time in future.
It’s safe investment
It’s easy to get started, yet profitable
100% control and ownership
It can be developed, renovated, sub-divided
Its comfortable to hold if things get wrong
Growth in population is igniting housing demand over supply
Its stable growing investment even you are retired
It’s easy to be financed

Question: What are top strategies or methods to buy a property to make money?

Answer: Top strategies and methods adopted by property professionals are as under

Buy and hold
Positive cash flow where collected rent becomes higher than the original cost of property
Buy, renovate and sell
Buying a bigger plot/property and then subdividing it to sell in units
Buying a open plot, constructing and then selling

Question: What key elements are important to consider before buying a property?

Anwer:

What has been already built and currently being built around that area where you are planning to buy a property
Check local market factors like demand and supply, desired level of new buyers, overall trend, crime rate etc
Calculate rental potential and make its statistical report to have error free judgement
Measure capital gain possibilities (increase in price) because it clearly helps to further buy properties as rental income is not sufficient to buy new properties
Evaluate market competition and think if you can compete it while protecting your interests
Know clearly about maintenance charges of any property from relevant authorities or society office. Sometimes it hurts badly and people don’t know these sort of regular charges while purchasing a property and later it becomes a worried concern.
In case, in future you need to sell your property, to whom you will sell?? Who is your ideal target market? Is everything will remain fit in this context?

Question: What major sort of properties are in Pakistan?

Answer: Properties in Pakistan are in forms of houses, commercial properties, residential plots, industrial facility, agricultural land etc.

Question: Where properties record is maintained?

Answer:

Mainly government or semi government authorities like KDA (Karachi Development Authority), CDA (Capital Development Authority), DHA (Defense Housing Authority)
Private housing societies like Bahria Town and many others
Cantonment board

Question: Which areas are good to buy property?

Answer: It depends on your personal preferences, budget preferences and investment preferences. You can write down your preferences and search accordingly but never miss an element of future growth and possibilities in different areas.

Make list of areas where you are interested as per your budget and other preferences.

Visit all those areas to see actual situation of development, infrastructure, environment, future growth possibilities, law and order by people feedback. Also consult many real estate brokers of that area to have rates of different properties.

Now after knowing all this, you must have areas name, societies names, different properties prices and overall situation of the area. Short list your area after evaluating your desired preferences based on budget and other factors to filter the best property and to make a ideal decision.

Question: How to select best housing society and what are major important key points to validate reliability of any housing society.

Answer:

Check company name of builders or welfare housing societies and its license status with relevant govt authorities
Check if map of society or project is approved or not? Map should be approved with the same company name which is licensed to conduct property related business
If map is approved, then check its current latest validity, either still active or not or expired?
Check company status in relevant government authorities to know its latest status in term of any outstanding dues on company, is it properly maintained there or it is among defaulters?
Check stay orders in court if any by legal consultant, encroachment status or land cases and disputes where you are going to buy your plot.
Check age of the company, its track record, its successful past projects and reputation
Check profile of the owners/directors of the company, their reputation, court cases and court judgements in last 10-15 years or more.
Check partners disputes if any. Many housing societies could not grow because of this issues between partners.
Check and compare different schedule of charges like outer development charges, re-development charges, watch and ward charges, utilities connections charges, maintenance charges, service charges, lease charges, transfer fee, mutation fee, different types of NOC charges, map stamping and forwarding fee, etc. You should be fully aware of such schedule of charges. All these charges should be low or moderate as compared with other societies or projects.
Check when they will lease your plot under your own name? They will do it or not? If yes, under which conditions?
Make it sure you will not bear any hidden charges, schedule of charges should be clear.

Question: Which real estate brokers are good and which are suspicious?

Answer: Signs of reputed real estate brokers are as follows while suspicious are opposite of it.

They will not hesitate to provide you full and complete documents of property (copy) whatsoever they have. They will not give you in parts.
They will guide and assist you to verify property documents from concerning housing societies or government authorities
They will not be reluctant to arrange a meeting with real legitimate owner of the property or with his/her actual attorney.
They will take you to the site to show physical status of the property
You can demand their identities or business license. They will not hesitate
They will demand token money after complete and full verification of documents and not prior to this.
You should issue payment cheques or pay orders in favor of the name of actual owner of the property and strictly avoid to issue payments to third party. Good brokers don’t have any objections on such things while suspicious brokers create reasons to issue payments to third party.
Additionally you can check other factors by personal meetings and judgements

Question: Should i demand photocopies of property documents from real genuine owner through agent?

Answer: Yes, indeed. It is the first step towards making a possible deal.

Question: Is it necessary to physically meet real owner of property and to check his documents?

Answer: Yes of course, don’t compromise on such things. It’s something highly sensitive.

Question: How to identify and verify latest legitimate owner of any property?

Answer: Visit to housing society office and they can verify it by charging a fee

Question: How to identify fake documents?

Answer:

Ask the seller to provide authority letter for documents verification. Real seller will immediately provide without hesitation while fraudsters hesitate and try to change your mind to not bother it.
Visit to the society office.
Apply for documents verification or “NOC for sale” by showing authority letter of the seller (they can charge a fee)
Society will issue a letter containing all credentials of latest updated allottee in their record
Now check if name mentioning on their letter is the same to whom you are dealing. You can demand original CNIC (national identity card) to verify it.
If the person who is dealing is not the same person mentioned on verification letter then he/she should have attested registered power of attorney from real titled owner. Authenticity of power of attorney should be properly validated through relevant resources.
If dealing person is different and nor he/she has power of attorney from real owner then it may be fraud case and don’t deal with such people and never issue any part payment or full payment to such irrelevant persons. They try their best to convince you but never bother.
Make it sure that power of attorney should be not older than two years or else you may face troubles in its validation even its real.

Question: If estate agent says, party is out of country then what to do?

Answer:

Then demand to meet a person who has his/her power of attorney to conduct such affairs on his/her behalf.
Also make it sure that power of attorney is genuine and registered.
Power of attorney from abroad is arranged through consulate and then it is verified through ministry of foreign affairs.

Question: Is power of attorney is a solid document if real owner is absent?

Answer:

Yes, if it is genuine, registered and attested as per legal requirements.
You should involve only with that person whose name and credentials are accurate as per given details of power of attorney and you should verify it by checking real identity of that particular person.

Question: If title owner of property is within country and has given power of attorney to someone then is it safe to deal with attorney?

Answer:

Yes, it’s safe if documents are valid and genuine.
Make it sure that if power of attorney is not older than 2-3 years.
In such case you may be demanded to bring actual titled owner in person who gave power of attorney if it is older than 2-3 years.

Question: Do housing societies demand authority letter from owner to verify documents when buyer visits them for verification of property status and documentation?

Answer:

Usually they demand but it’s not hard and fast rule.
In some cases they can provide verification without authority letter by writing a simple application
But to be safe side arrange authority letter from the owner to verify his/her documents to avoid any inconvenience.

Question: Do housing societies charge fee to verify documents?

Answer:

Yes, most of societies charge
Charges may vary from different societies to different societies.

Question: Do housing societies issue written confirmation letter having details of latest original genuine owner of property?

Answer:

Yes, they provide in writing the actual existing current owner of the property as per their record, his/her identity card number, address, property details and dues if any.
They don’t issue any verification document if there is something wrong with the plot status.

Question: How i may know that plot is “transferred” or “leased” and why it is important to know?

Answer:

First of all, “provided documents copy” will help you to know it
But to re-check, you can ask society office to confirm it.
It is very important to know because “Lease Deed” is an official title of property ownership. Lease deed is a most solid document of entitlement of property, if plot is leased then it’s safe to buy while transfer status plot has no such authenticity as leased property has.

Question: Where lease deed is registered?

Answer:

In relevant government authorities like registrar office.
Record of leased properties is maintained there.

Question: Who is Lessee and Lessor?

Answer:

The allottee or plot holder would be said as lessee.
Housing society would be said as lessor which is going to sub lease under your name as main lease of land remains under the name of society.

Question: What is lease and sublease?

Answer:

Main land of any housing society is leased under company name and such first lease is said as main lease of whole land between company and the land seller.
When society lease the same land into pieces to his allottees as per their plot sizes then it is said as sub lease between the company and allottees.

Question: What is transfer status plot?

Answer:

A property whose whole and sole record is only managed by housing society without registering title of the property with government concerned authorities.
If housing society bankrupts or closes its operations then your plot is at risk if it has transfer status because none of the record of such plots is acknowledged or maintained in any of the government departments.

Question: Is transfer status plot secure to buy?

Answer:

If housing society is highly reputed having many years of successful business then it’s somehow secure or else it’s a bad choice
but one can buy transfer status plot and later should immediately proceed towards lease if society allows it. If society doesn’t allow to lease then it’s risky.
Make it sure to know policy of the society either it allows to lease anytime whenever allottee demands or not.

Question: What is leased status plot?

Answer:

A property whose record and entitlement of property is registered with concerned government authorities like registrar office is said to be leased property.
Leased plot is said to be officially titled property as per laws.
Leased property record is also maintained in a housing society along with the government authorities.
When anyone buys leased property then his record is updated in government registrar office and as well as in housing society.

Question: Is leased status plot secure to buy?

Answer:

Yes, it’s secure as title of property is registered with concerned government authorities.
No individual or company can change this record until owner sells it by certain process of sale deed, conveyance deed, gift deed or any legal approach.

Question: What sort of documents there should be in a file of property?

Answer:

Mainly one can consider to have booking form
Letter of acceptance
Allotment order
Lease deed (if plot is not leased then transfer letter)
Possession order
No dues clearance certificate, development charges clearance certificate
All sort of payment receipts
If plot is sold many times to different persons then sale deeds of all those persons is required or power of attorney or sub attorney of all those persons is required.
You should make a chain of people who bought and sold and to match all legal documents accordingly.
Different societies have different documents but most common are mentioned above.

Question: What is search certificate? Who issues it?

Answer:

Search certificate contains the information of actual title of property
It is issued by registrar office.
If you want to confirm actual current owner of property then apply it in registrar office.

Question: Who are needed to acquire search certificate?

Answer:

Those who want to buy property and want to authenticate the current updated legitimate owner of the property
Those who are going to lend
Those who are issuing payment

Question: What are best negotiation tactics to make a smart deal?

Answer:

Be clear and focus on what you actually want to achieve. Set your goal and purpose
Search that what is reason of selling and make your points accordingly to best fit your terms which should realistically and logically attract seller
Deal with most appropriate manner and respectfully. Nobody likes arrogant people. Oppose things in such a way that seller should not mind. Its only possible when your response is logical.
Making too low offer does not work if you cannot prove its reasoning. Make justified offer or firstly prepare your case and then make an offer as per your case study and then justify it. After All you will have to provide reasoning and logics.
You should successfully make the seller aware that most of other buyers will raise a same points which you are raising, so you should be able to manage his/her alternate options.
Realize to the seller that one bird in a hand is better than two in the air. Means, your offer is better at the moment.
Don’t forget to make terms and conditions along with the offer
Your emotions should not overcome on your real financial situation. Make a deal as per your comfortable financial situation.
You can write an entire offer with price, its justification and all above factors. Written offer and proposal is more clear, authentic and powerful over verbal offers.
Written offer and proposal forces a seller to accept it or reject it in one way or another. Verbal offer has no such weight and value which written offer has.
Or you can consider both at a same time to make it more effective and satisfactory.

Question: Where sale deed, conveyance deed, gift deed, power of attorney, power of sub-attorney is registered? And who handles documents related work?

Answer:

It is registered in registrar office
Normally documents are prepared by the lawyer or estate agents manage such requirements of documents preparation.

Question: Any property of a city can be registered in any registrar office of a city?

Answer:

No, different regions have different registrar offices
You should visit accordingly.

Question: If i am a seller of property then which documents should i bring in registrar office during process of registering my property to a new buyer?

Answer:

Identity card (CNIC)
3-5 Photos
Properly filled sale deed or conveyance deed or gift deed or power of attorney or power of sub attorney (whatever applies on you). Make it sure that details of seller and buyer are put there correctly. Your real estate broker or property consultant will guide you on this.
Complete full original file of property as buyer will demand it when the process will complete and he/she will issue full and final payment.

Question: If i am a buyer of property then which documents i should bring in registrar office?

Answer:

Identity card (CNIC)
3-5 Photos
Properly filled sale deed or conveyance deed or gift deed or power of attorney or power of sub attorney (whatever applies on you). Make it sure that details of seller and buyer are put there correctly. Your real estate broker or property consultant will guide you on this.
Pay order of remaining payment which the seller will demand after successful process.

Question: How process of buying and selling happens in registrar office? What procedure is adopted there?

Anwer:

They will duly check all documents in presence of buyer and seller
They will check their original identities
They will verify photos to enlist in documents
They will confirm and verify that buyer has paid full payment to the seller
They will ask to put signatures and thumbs of both buyer and seller at all required places of the legal documents.
After doing all this, they will submit the documents and will issue a receipt
Normally after 2-3 months, original documents with new owner name can be obtained by showing a receipt.

Question: When everything successfully happens at registrar office then what is exchanged between buyer and seller?

Answer:

At this stage, buyer hands over the pay order of all remaining payment
And seller hands over the full complete original file of property.

Question: What is NOC of MUKHTIARKAR? When and why it is needed?

Answer:

MUKHTIARKAR is an institution which maintains records of properties in certain regions.
Records of the approved maps of housing societies is kept there along with plot sizes and numbers.
When someone applies for lease deed registration then allottee is required by the registrar office to avail NOC from MUKHTIARKAR.
They match the request with their record and grant NOC if everything is correct.

Question: Is NOC of MUKHTIARKAR applicable on all housing societies?

Answer:

No, it is limited to certain regions
But it is expanding with the passage of time to secure and protect various important matters of properties.

Question: What is NDC? When and why it is needed?

Answer:

NDC stands for no dues certificate and it is issued by cantonment board.
If license of housing society, its dues and all sort of requirements are properly updated in cantonment board then NDC is issued to allottees.
NDC is required during sale deed, conveyance deed, gift deed or during buying selling process of property.

Question: Is NDC applicable on all housing societies?

Answer:

No, it’s limited to certain regions which are under control of cantonment board.