Buying a house or plot in Pakistan usually involves two papers. The first is the bayana, a token-money agreement that holds the deal. The second is the sale deed, the registered document that actually moves ownership from the seller to the buyer. Many buyers treat the first as if it were the second and only learn the difference when something goes wrong. This guide explains what each document does, what a sale deed should contain, how it is registered and the checks to make before you sign.
Quick answer: A sale deed (bainama or registry) is the document that transfers ownership of immovable property from seller to buyer. To be valid, it must be written on stamp paper of the correct value, signed by both parties before two witnesses and registered with the Sub-Registrar of the area where the property is located. A bayana or agreement to sell only records a promise to sell on agreed terms. It does not make the buyer the owner.
Bayana vs Sale Deed: What Each One Does
Bayana (Agreement to Sell)
The bayana, also called iqrarnama, is signed when the buyer pays token money to hold the property. It records the price, the token amount, the date by which the balance will be paid and what happens if either side backs out. Under the Transfer of Property Act, a contract for sale does not by itself create any ownership in the property. It gives the buyer a right to have the sale completed, which can be enforced through a suit for specific performance if the seller refuses.
Sale Deed (Bainama)
The sale deed is the final step. Once it is signed and registered, the buyer becomes the legal owner. In the land record, a mutation (intiqal) is then entered in the buyer's name. In a housing society, the society also transfers the plot in its own records.
In short: the bayana holds the deal, the sale deed completes it.
What a Bayana Agreement Should Include
- Full names, CNIC numbers and addresses of the buyer and seller
- Exact property details: plot or house number, khasra number where relevant, area and location
- Total price, token amount paid and how it was paid
- Balance amount and the final date for payment and transfer
- Who pays which taxes and fees
- What happens to the token money if the buyer or the seller backs out
- Signatures of both parties and two witnesses
Many agreements say that the buyer loses the token money if the buyer backs out, and the seller returns double the token if the seller backs out. This is a common market practice, not a fixed rule, so write the exact terms in the agreement. Print it on e-stamp paper generated in the names of both parties. Our guide to e-stamp paper in Punjab explains how.
Sale Deed Format: Main Clauses
A sale deed is usually drafted by a deed writer or lawyer. Whatever the wording, it should cover these points clearly:
- Parties: names, parentage, CNICs and addresses of the seller (vendor) and buyer (vendee).
- Property description: location, area in marla, kanal or square feet, boundaries, and khasra, khewat or plot numbers.
- Title of the seller: how the seller became the owner, with reference to the earlier deed, mutation or allotment.
- Sale price and payment: the full price and confirmation that it has been received, ideally with bank instrument details.
- Possession: the date on which possession is handed over.
- Free from claims: a statement that the property is free of mortgage, loans, disputes and other claims.
- Indemnity: the seller's promise to make good any loss if a defect in title appears later.
- Signatures: both parties and two adult witnesses with their CNIC details.
The area written in the deed should match the land record or society record exactly. If the record uses marla, check which marla size applies. Our guide to marla to square feet conversion explains the different sizes.
How a Sale Deed Is Registered in Punjab
- Verify the record. Get the latest fard or ownership record and confirm the seller is the owner. See our guide to the fard online check in Punjab.
- Pay the duty and taxes. Generate the e-stamp for stamp duty and pay the other charges, such as registration fee and FBR advance tax on the buyer and seller.
- Prepare the deed. The deed is drafted and printed as required by the registration office.
- Appear before the Sub-Registrar. The buyer, seller and witnesses attend in person with original CNICs. Their identity is verified and the Sub-Registrar records their statements.
- Registration. The deed is entered in the register, given a number and returned to the buyer.
- Mutation. The sale is then entered in the land record in the buyer's name.
A deed should be presented for registration within four months of signing. If the seller lives abroad, a registered power of attorney can be used. Our guide to power of attorney for property covers the checks.
Costs Involved
The main charges at registration are stamp duty, registration fee, provincial transfer charges and federal advance tax. They are worked out on the declared price or the official value, whichever is higher. Our guide to property transfer fees in Punjab lists each charge, and the comparison of the DC rate and FBR valuation table explains which value is used.
Checks Before You Pay the Token or Sign the Deed
- Match the seller's CNIC with the name in the record.
- Check that all co-owners are selling, not just one of them.
- Confirm there is no mortgage, stay order or pending case.
- For society plots, verify the file and transfer status with the society office first. See our plot file verification guide.
- Pay the token and balance through the bank, not in cash.
- Keep the token small and the transfer date short.
- Never sign a blank or incomplete agreement.
When the paperwork is clear, you can compare homes and plots for sale across Pakistan on Pakistan Property.
Frequently Asked Questions
1. What Is a Sale Deed in Property?
A sale deed is the registered document that transfers ownership of immovable property from the seller to the buyer.
2. Does a Bayana Make Me the Owner?
No. A bayana or agreement to sell only records a promise to sell. Ownership passes when the sale deed is registered.
3. Is Registration of a Sale Deed Compulsory?
Yes. A sale of immovable property must be completed through a registered deed at the Sub-Registrar's office where the property is located.
4. Who Signs the Sale Deed?
The seller and the buyer sign it, along with two adult witnesses. All of them usually appear before the Sub-Registrar.
5. What Happens if the Seller Refuses to Complete the Sale After Bayana?
The buyer can claim the remedy written in the agreement, and can file a suit for specific performance to have the sale completed.
6. What Is the Difference Between Registry and Mutation?
The registry is the registered sale deed. The mutation (intiqal) is the later entry in the land record that shows the buyer as the new owner.
Comments
Post a Comment