Property fraud is unfortunately common in Pakistan. A thorough due diligence process before any purchase can save buyers from catastrophic financial loss. Here is what you should verify before signing any agreement.
Property fraud — including forged title documents, multiple sales of the same property, and fraudulent power of attorney — represents one of the most significant legal risks in Pakistan's real estate market. A structured due diligence process is essential for any buyer.
Step 1: Title Verification
Obtain certified copies of the current Fard (ownership record) from the relevant land revenue authority. In Islamabad's CDA sectors and DHA schemes, verify ownership directly with the authority. Check for any adverse entries, mutations, or encumbrances.
Step 2: Seller Verification
Verify the seller's identity against their CNIC. If a power of attorney is being used, verify it is currently valid, duly attested, and specifically authorises the sale. Power of attorney fraud is extremely common.
Step 3: Encumbrance Search
Check whether the property is mortgaged to any bank or financial institution. A search at the relevant sub-registrar office will reveal registered charges.
Step 4: Physical Inspection
Visit the property in person. Verify that the physical boundaries match the documents. Check for any encroachments or unauthorised constructions that may affect the title.
Step 5: Society/Authority Clearances
In housing society or DHA properties, obtain an NOC from the relevant authority confirming no dues and no legal disputes affecting the property.
The Bottom Line
Skipping due diligence to save time or fees is a false economy. We have seen clients lose millions on fraudulent transactions that a proper title search would have prevented.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For advice specific to your situation, please contact our team.