Pakistan Real Estate Glossary

Document issued by a housing authority or developer confirming allocation of a specific plot or unit to a buyer. First proof of ownership in new housing schemes.

Government-approved map of a housing scheme showing plot sizes, roads, parks, and amenities. Scheme without approved layout plan is illegal.

1 Acre = 8 Kanal = 160 Marla = 43,560 sq ft. Used for agricultural and large commercial land.

Notional annual rent a property could fetch. Used by provincial government to calculate property tax. Set by Excise & Taxation department.

Rent paid in advance, typically for 6 months or 1 year. Common for commercial properties. Tenant loses advance if vacating early.

Advance token payment (typically 10–25% of property price) paid by buyer to confirm intent to purchase. If buyer backs out, Bayana may be forfeited. If seller backs out, double Bayana is returned.

Permission from LDA/CDA/KDA to construct a building on a plot. Required before construction begins. Building without approved plan is illegal.

Lottery-based allocation of plots in a new housing scheme when demand exceeds supply. Housing authority randomly assigns specific plots to allottees.

Foundation layer of bricks laid flat before concrete work. First step in plot construction after excavation.

Document issued by the relevant development authority confirming a building has been constructed according to approved plans and is safe for occupation.

Tax on profit from property sale. FBR rates: held < 1 year = 15%, 1–2 years = 7.5%, 2–3 years = 0% (for open plots), 3–4 years = 0% (for constructed). Filers and non-filers have different rates.

Federal tax on purchase of immovable property above certain value thresholds. Currently applicable on properties exceeding PKR 5 million in major cities.

Governs land use, construction, and housing in Islamabad. Issues building permits, NOCs, and manages allotments in federal capital territory.

Issued after construction is verified to match approved plans. Required to legally occupy a new building.

Plot located at the corner of two streets. Preferred for commercial use and extra frontage. Commands 10–25% premium over regular plots.

Plot designated for commercial use (shops, offices, plazas). Commands higher prices than residential plots. Requires separate commercial building plan approval.

District Collector Rate — minimum property value set by provincial government for stamp duty calculation. Usually lower than actual market value.

Military-affiliated housing authority managing DHA housing schemes across Pakistan (Lahore, Karachi, Islamabad, Peshawar etc.). Known for strict regulations and high property values.

Plot in a housing society with infrastructure (roads, utilities) in place. Ready for construction.

Islamic financing structure for home purchase. Bank and buyer jointly purchase property. Buyer pays rent to bank for bank's share while gradually buying out bank's ownership.

Initial lump sum payment made by buyer when purchasing property on financing. Typically 20–30% of property value for bank home loans.

Ratio used by banks to assess ability to repay loan. Banks typically require DSCR of 1.25x — meaning income must be 1.25x the monthly installment.

Notice from seller or housing authority requesting payment of outstanding installments. Common in installment-based property purchases.

Developed: infrastructure (roads, utilities) complete. Undeveloped: land only, no services. Undeveloped plots are cheaper but require years before construction.

Waterproof layer in construction to prevent moisture rising through walls from ground. Usually bitumen-based.

Fixed monthly payment for a home loan covering both principal and interest/profit. Calculated based on loan amount, rate, and tenure.

Any legal claim, mortgage, lien, or restriction on a property. Always check for encumbrances before purchasing. Can be verified from land records.

Official land ownership record issued by the Patwari (land revenue officer). Shows who legally owns a piece of land. Required for all property transactions in Punjab and KPK.

Property values set by FBR for tax calculation purposes. Often lower than actual market price. Tax is calculated on the higher of FBR value or DC rate.

Federal tax authority. Maintains Active Taxpayer List (ATL). Filer status (on ATL) results in lower withholding tax on property transactions.

A claim or booking in a housing scheme before physical development. Riskier than developed plots. Traded like shares — value fluctuates before possession.

Self-contained residential unit in a multi-story building. Measured in sq ft. Common in Karachi, Islamabad, and increasingly in Lahore.

Outright ownership of land and property with no time limit. Owner has full rights to sell, transfer, or develop. Most Punjab properties are freehold.

Ratio of total building floor area to plot size. Controls building height and density. Defined in building bylaws. E.g., FAR 2 means 2x plot size total floor area allowed.

Official payment receipt generated when rent is paid through an FBR-registered platform. Can be used as expense deduction in income tax return filing.

Seasonal crop inspection report prepared by the Patwari. Used as proof of land possession and cultivation. Required in some rural property transactions.

Building at structural stage — foundation, columns, beams, roof slab complete but no finishing. Cheaper than completed property.

Percentage of plot that can be covered by building footprint. Remaining area must be left open. Typically 60–70% for residential in Pakistan.

Official transfer of property ownership in government land revenue records (Jamabandi). After sale, Inteqal transfers the Fard from seller to buyer. Completed at the Patwari office.

Written agreement between buyer and seller confirming the terms of property sale. Also called Sale Agreement. Signed before final Registry and full payment.

Land revenue register maintained by the Patwari containing details of land ownership, possession, and cultivation. Updated every four years.

Unique identification number assigned to each plot of land in the land revenue record (Mussavi). Helps identify and locate specific parcels of land in rural and peri-urban areas.

Regulates development in Karachi. Issues NOCs for housing schemes and construction approvals.

1 Kanal = 20 Marla = 5,445 sq ft (505.86 sq meters). Used for larger plots and agricultural land.

Karachi Interbank Offered Rate — benchmark interest rate used for bank lending. Home loan rates are typically KIBOR + spread (e.g., KIBOR + 2%).

Vacant house — property available for rent or sale that is currently unoccupied.

Regulates and approves housing schemes and construction in Lahore. Issues NOCs, approves building plans, and maintains land records for Lahore.

Ground floor of a house rented or sold separately. Often preferred for elderly or families wanting ground-level access.

Red boundary line marking original village abadi (settlement) area. Properties within Lal Dora may lack formal land records and can have title issues. Common in Delhi and some Pakistani villages.

Long-term (usually 99-year) government land grant. Leasehold properties are common in Karachi (KDA, DHA Karachi). Leasehold is different from freehold ownership.

1 Marla = 272.25 sq ft (25.29 sq meters). Standard unit for residential plot measurement in Punjab and KPK. Common sizes: 3, 5, 7, 10, 20 Marla.

1 Murabba = 25 Acres = 200 Kanal. Used for very large agricultural land in Punjab.

Shariah-compliant home financing by Meezan Bank using Diminishing Musharakah model. No interest (riba) — bank and customer co-own property, customer buys bank's share over time.

Property pledged as security for a loan. Mortgaged property cannot be sold without clearing the mortgage. Must be discharged before property sale.

National Database and Registration Authority — issues CNICs and verifies identity. Required for property transactions.

Certificate confirming no legal objection to a property transaction, construction, or housing scheme. Issued by relevant authority (LDA, CDA, DHA etc.). Essential for new housing schemes.

Required advance notice before vacating (tenant) or evicting (landlord). Typically 1–3 months as agreed in rent agreement.

Extra amount paid above official price for a property in a housing scheme, especially for files or plots in high demand. Common in Bahria Town and DHA.

Property transfer with transfer documents signed but buyer's name left blank. Allows easy resale without going through authority. Common in DHA but carries risk.

Legal document authorizing another person to act on your behalf for property transactions. Commonly used by overseas Pakistanis. Must be attested by Pakistani Embassy if executed abroad.

Document issued when physical possession of a property is handed over to the buyer. Issued after full payment in new housing schemes.

Annual tax levied by provincial government on property owners based on Annual Rental Value (ARV). Collected by Excise & Taxation department. Residential properties below ARV threshold are exempt.

Government revenue officer responsible for maintaining land records (Fard, Jamabandi, Girdawari) at the local level. Required for Inteqal and Fard-related transactions.

Vacant land intended for construction. Residential plots are measured in Marla/Kanal; commercial plots in sq yards or Marla.

Luxury apartment on the top floor of a high-rise building. Features private terrace, panoramic views, and premium finishes.

Physical handover of property by seller/developer to buyer. Possession without complete documentation is risky.

Construction cost or property price expressed per sq ft. Current average construction cost in Pakistan: grey structure PKR 2,500–3,500/sqft, finished PKR 4,000–7,000/sqft depending on quality.

Legal document that officially records property ownership transfer. Executed at the Sub-Registrar office. Provides legal proof of purchase. Different from Fard — both are needed for complete ownership.

Fee paid to Sub-Registrar office for registering sale deed. Usually 1% of property value.

Standard construction method using concrete reinforced with steel bars. Used for columns, beams, and slabs in Pakistani construction.

Written contract between landlord and tenant specifying rent amount, duration, responsibilities, and terms. Should be notarized for legal protection. Recommended for all rental arrangements.

Provincial tax paid when executing a sale deed (Registry). Rates vary by province: Punjab 3%, Sindh 2–3%, KPK 3%. Paid at Sub-Registrar office.

Government official who registers property sale deeds (Registry). All property sales must be registered with Sub-Registrar to be legally valid.

1 Sq Yard = 9 sq ft. Common measurement in Karachi and Sindh. 1 Marla = 30.25 sq yards.

1 Sq Meter = 10.764 sq ft. Used in formal documents and some modern developments.

Minimum distance required between building and plot boundary. Front setback, side setback, and rear setback are all defined in building regulations.

Refundable advance payment by tenant to landlord as security. Typically 2–3 months' rent. Must be returned at end of tenancy if property is in good condition.

Document issued by a housing authority confirming transfer of ownership from one person to another within the society records.

Fee charged by housing authority or development authority for transferring ownership in their records. Varies by society.

Upper floor(s) of a house rented or sold separately from the ground floor. Common rental arrangement in Pakistan.

Tax collected at the time of property sale/purchase. Rate depends on filer status: filers pay 1–2%, non-filers pay 2–4% of property value at time of transfer.

Water and Sanitation Agency connection. Required for legal water and sewerage connection. Societies need WASA approval for their development.