Salam/hi,
I live in uk and i am planning to buy the apartment in karachi, that my family has been living in as tenants for the last 10+ years. The current owner is a humble old man whose children also live here in uk.
The current owner has now told me to make the payments for the aforementioned property in uk to his children and that he will deal with my father and legally transfer the property under my name back in pakistan.
I am thus seeking an advice whether it is safe to do so and make the payments to his son here in uk.(as this will also save me time and money transfer costs to pakistan). Also, if any mishap happens and the guy refuses to agree after the payment has been made, will this payment and agreement have any value under pakistani law?
Please advise accordingly.
Regards
Jawad
Usually, there are some steps involved in transfer of property. You should consult some property dealer to understand the process. Usually such advice is free of cost, but you can pay a nominal fee if you like. (But I would not advise you to involve any property agent in this deal and this might put off the owner, and the dealer might play his own game as well.) You can prepare a banker's cheque and show to owner as proof that your "payment is in order". On the other hand, there should be a proper sales deed on stamp paper signed between two parties in Khi. And when the transfer takes place at Karachi, right at that time, the cheque is handed over to owner's children and they verify over the phone to their dad. This will securely complete the transaction.
Perhaps there are other legalities involved, including taxation, etc. That I am not fully aware of. So when you speak to a property agent in Khi, he can guide you properly.
No matter how humble and timid the old man appears, please do not make the payment in advance.
@Isloo....Jzak ALLAH khayr for your reply bro,
the current owner is happy about a solicitor or a property agent getting involved. Secondly, he has just suggested so that the payment process is hassle free, as the money the owner gets from selling the property will eventually be paid to his son..so to avoid the money first going to pakistan and then he himself incurring extra cost for money transfer again to send to his son, he suggested me to pay his son directly.. My question is whether it has some qanooni hesiyaat? coz incase god forbid, the owner who appears to be humble and I believe he is really, changes his mind tomorrow and says he never received the payment in pakistan and is not liable to transfer the papers, then in that case..what shall i have as an evidence except for a foreign bank statement reflecting the amount transferred to an individual which is his son(to which he can deny easily that this payment is not for the property but personal transaction took place between his son and me...quite a possibility..isnt it?)
Regards
JAwad
U can not take help legally in UK if u do then u have to
1 = Give proof of Money (tax paid on that etc etc )
2 = You have to register property with Tax (local council )
All u doing it in UK ...paying money in black.
U should make the deal in Pak not in UK. It is risky until n unless u dont have extra guarantee.
Apple, but how do you remit money back to UK is a another question. It is not only cost to transfer plus exchange rate, etc., but also restrictions by state bank to transfer foreign currency out of country. So I think Jawad needs to consult solicitors in UK as well as in Pak to avoid any legal problems and to make the deal bullet-proof.
The process is simple. Meet the owners son and agree on a solicitor. The solicitor will charge you around 500 pounds and will draft an agreement between you and the son. You pay the solicitor the value of the property. The solicitor will keep the funds in escrow and release to the son when the property is transferred to your name. This is how the process works with all UK property deals.
Which city are you in? I used a sharia compliant solicitor based out of Blackburn for the purchase of a flat in London.
@Khan007, plz remember that the payment is made for a property that is purchased in Pak. And based on what Apple has raised, makes it 3 questions:
How to secure the transactions (both money and property transfer) so that nobody plays smart.
Legal status of payments made in UK while the property exchanges hand in Pak.
Taxation in UK and Pak.
No dear it’s not allowed, it comes under Money laundering.
Even don’t think about gift deed in Pakistan.
No dear it’s not allowed, it comes under Money laundering.
Even don’t think about gift deed in Pakistan
I think you should involve solicitor. As we buy property in uk, put money in solicitor s account.when property is transfer on your name then solicitor can transfer funds his son account, or solicitor can advice you better.
I will advise you to put everything on documents dually signed by you or your representative in Pakistan and the property owner to avoid any misunderstanding and fraud. If the property owner is humble, then he wont mind signing up a document for your security.
@ Faisal what you mean by “Even don’t think about gift deed in Pakistan”.
Dear Arshad, dealers could suggest our brother to make payment in London and ask property owner to transfer property under gift deed. Tax issue isn’t as big as they can pay tax on estimated cost.
When u pay in UK ,u have to register in UK that u have bought property and u have to pay tax on it (if tax or council finds out it).Gift is only from parents right ? unknown person can not gift to unknown when it comes to property . Malik Riaz can not gift zardari .... FBR asked him to pay tax on it.
You can not give cash 30 or 50K to someone in UK , it is risky too.
You transfer money to Pak and buy and its not ur headache how will they send money to UK.
Thanks for all your replies. It indeed was very helpful.
JAZAK ALLAH KHAYRUN..
Is it legal in UK to do this ? …