Most Lahore property deals happen in two steps. First, buyer and seller sign an agreement to sell (iqrar nama or bayana agreement) when a token is paid. Later, the sale deed (bainama) is executed and registered, or the society or authority transfer is completed. A poorly drafted agreement is one of the most common causes of property disputes.
What's included
| Document | What it does | Key contents |
|---|---|---|
| Agreement to sell (iqrar nama) | Records the deal and the token payment | Parties, CNICs, property description, total price, token amount, payment schedule, completion date, default terms |
| Receipt for token or instalments | Proves each payment | Amount, date, mode of payment, signatures and witnesses |
| Sale deed (bainama) | Transfers ownership; registered with the sub-registrar | Final price, full property description, declarations by seller, possession clause |
| Gift deed (hiba nama) or other conveyance | Transfers without sale | Donor, donee, property, acceptance, possession |
| Special power of attorney | Lets someone act for an owner | Precise powers, property, limits |
| Possession letter | Records handover | Date, keys, meter readings, condition |
When you need it
- When price and terms are agreed and a token is about to be paid
- At completion, for the final sale deed or gift deed
- When an overseas owner appoints someone to act on their behalf
- When an earlier agreement was informal and needs to be put in proper form
Step-by-step process
- Verify title first. Drafting should follow a title check, not replace it.
- Share the agreed terms. Price, token, instalments, completion date, who pays which charges, fixtures included.
- First draft. The lawyer prepares the agreement with property details taken from the records.
- Review by both sides. Each side's lawyer, if any, comments.
- Final draft on stamp paper. Stamp paper of the right value is bought in the correct names.
- Signing with witnesses. CNIC copies attached; payments by bank instrument where possible.
- Completion. The sale deed is drafted on the same terms and registered, or the society or authority transfer is processed.
- Mutation. For revenue property, the mutation (intiqal) is entered with PLRA.
Registration and charges
The sale deed is registered with the sub-registrar; e-registration through PLRA carries a service fee of 0.1% of land value with a minimum of Rs3,600 for FY2026-27, and a certified copy of a registered deed costs Rs1,400 (Profit, July 2026). Stamp duty and other government taxes are charged in addition at the rates set by the government; ask your lawyer to calculate them on the current rules before signing.
What affects the cost
There is no fixed published fee for drafting. Ask for a written quote. Factors include:
- Type of document and how many are needed (agreement, receipts, deed, power of attorney)
- Complexity: multiple sellers, inheritance in the chain, instalment deals, overseas parties
- Whether title verification is included
- Whether the lawyer attends signing and registration
- Government charges, which are separate from the fee
Questions to ask the lawyer
- Will you check the title before drafting, or should I arrange that separately?
- What happens in the agreement if the seller backs out, or if I delay a payment?
- Who pays stamp duty, taxes and registration charges in this deal?
- How will payments be recorded and proven?
- Do all co-owners need to sign? What if one lives abroad?
- Will you attend the registration?
Red flags
- An agreement copied from a template with wrong property details
- No clear completion date or default clause
- Cash payments with no receipts or witnesses
- Signing on stamp paper bought in someone else's name
- A deed showing a lower price than actually paid
- Not all owners named, especially in inherited property
FAQs
Is a token agreement legally binding? A properly drafted and signed agreement to sell creates obligations for both sides, which is why its terms matter. Ask your lawyer how its default clauses would work if either party pulls out.
Can we use a ready-made agreement from a property dealer? You can, but generic templates often miss important points such as co-owners, encumbrances and exact property details. A lawyer's review costs far less than a dispute.
Do I need witnesses? Witnesses are standard on agreements and deeds and help prove execution later. Your lawyer will tell you how many and who can sign.
What if the property is in a housing society? The society's own transfer process usually applies in addition to, or instead of, a registered deed. Ask the society what documents it requires before the agreement is signed.
This page is general information; confirm with the relevant authority or a qualified professional before you act.