Due to some confusion present in the law, property registrars have stopped issuing property transfer deeds in Sindh. This development has lead to disputes between buyers and sellers, with the property business at a standstill these days.
Pakistan Real Estate Investment Forum (PREIF) wrote a letter to Federal Board of Revenue (FBR) Chairperson Rukhsana Yasmeen, asking her to intervene.
In its letter, PREIF informed Chairperson FBR that in last budget for the financial year 2018-19, the government passed a law to establish a directorate for immovable property that would determine property valuations in the future. Until such a directorate is established and notified, existing FBR valuations should be used for property documentations.
“In Sindh, property registrars are hesitant in using the existing FBR valuations in the absence of clear directions. They have been adjourning property transfers and this is leading to disputes between buyers and sellers,” the letter states.
PREIF asked the Chairperson to issue some guidelines in this regard and provide an official clarification on FBR’s website that the FBR valuations are still intact until the directorate for immovable property is established and notified.
PREIF president Shaban Elahi told ProPakistani that in all other provinces property registrars are using the FBR values and issuing transfers and other documents. But in Sindh, this was stopped, leading to a freeze in the property market. Sindh also continues to lose revenue due to this.
“In just Karachi, the city provincial government can earn about Rs 1 billion from property registrations. However, this process remains halted, and people who are stuck in property deals are losing money. The province also continues to lose revenue,” Shaban told.
Here’s the PREIF letter:
Glad to notice very important development in Sindh Province identified by the Honorable President PRIEF, Karachi by the FBR. I also thank PP to provide visibility on this media.
creating ways to take bribe officially. Huge lose for the property owners.