Understanding Stamp Duty and Registration Fees
Last Update 3 months ago
Stamp duty and registration fees are essential costs that make your property transaction legally valid.
What Is Stamp Duty?
Stamp duty is a government tax on legal documents, such as sale or transfer deeds. It confirms the transaction’s authenticity and makes it admissible in court.
Who Pays Stamp Duty?
Usually paid by the buyer, though parties can agree otherwise.
How It’s Calculated
Rates vary by province:
- Punjab: around 3% of property value
- Sindh: 2%–3%
- KPK and Balochistan: similar provincial rates apply.
What Are Registration Fees?
Registration fees are paid to the Sub-Registrar Office when recording the property in official records.
These are usually 1% of the property’s declared value.
Documents Required for Registration
- Original and copy of Sale Deed / Title Document
- CNICs of buyer and seller
- Proof of tax and stamp duty payments
- Passport-size photos of both parties
Tip:
Never skip registration. A property transfer without official registration is not legally recognized, even if both parties have signed a sale agreement.