For most of us buying property is realizing dreams that probably happens once in a lifetime and this makes it even more compelling to take the right decision with careful considerations. A good decision might win you fortunes but a bad one might get you stuck for years without any gain but with mere opportunity cost!
Real Estate is a growing sector in Pakistan with enormous investments. However, regulatory systems are still in development phase, and we come across malpractices, scams time to time. Selling duplicate files, encroached land, illegal society or project, fake registration forms, and files without actual land etc. are few of such examples.
Okay, I understand, what shall be my key considerations?
1- Purpose of your transaction?
- Observe key trends in general regarding real estate in your country
- Government support and regulations
- ROI? Commercial or Residential?
- For Residence
- Near my workplace or children’s school etc.
- Peaceful place
- Eco friendly
2- What is your budget?
3- What options are available within my budget satisfying the purpose?
4- Shortlist options – matching your budget and considerations
5- Scrutinize your options:
- Who’s the developer? What is the progress? Which other projects delivered?
- Is society approved by the regulator like LDA? How to check this?
- Search on google with negative keywords like fraud, scam, protest etc. along with the society name or even you can create google alert for any news that comes on surface while you are doing your homework
- Understand the Product/Project
6- Get Into the Details:
Not just the high-resolution pictures or simulated videos!
- Location and accessibility
- On ground progress
- Deadlines, possession, and other specific dates
- Developer/Society communicated Payment Plan and Master Plan
- Performance of previously delivered projects
- Look for a Trusted Real Estate Agent – this is another uphill task, but we at www.propertydost.pk can help you achieving your objectives
- Review Market Rates and Negotiate
- Check from other sources
- Check with second and third best alternatives to this option
- Be sure to be clear on dealer/agent commission generally it is 1% of total price
7- Documentation and Legalities:
In case of individual seller
- Meet the owner
- Check property documents and any pending dues/bills etc.
- Start with token money (bayana) – max 5-10%, try to avoid cash as much as possible – pay via Pay Order.
- Ink an agreement at the time of bayana and agree all terms and conditions
- Demand the copy of Sale Agreement
In case of Society
- Apply for NDC/SOD – to ensure seller doesn’t have any due taxes or pending dues with the society
- Legal Documents
- Buyer’s affidavit – confirming charges that will paid by the buyer
- Seller’s affidavit – confirming that all pending dues have been paid by the seller and requests society to cancel his allotment in favour of the buyer
- Pay commission and collect allotment letter
CEO, PropertyDost.pk, Mr. Sheraz Khan expressing his views on Lahore Smart City’s recently launched commercial plots and explaining why they had ON from the very first day of launch.