Just a general querry what is the cheapest safe and reliable mode of payment for real estate transactions in pakistan.
Thank you
Cheapest and Safe actually may not go well together!!
Safest is pay/receive all amount via Bank Draft/Pay Order
Cheapest is pay/receive via cash to avoid bank transactions fee.
In doing so, there will be more tax. A practice people do is to pay DC rate amount via Drafts and rest as cash and get the deal closing documented on stamp paper.
Safest, ofcourse are bank-based transactions (cross cheque, account transfer, pay order) with varying bank fees. If you are going to receive funds, always do it via Bank Draft/Pay Order, its also called Bankers' Cheque.
Also double check/verify from Bank the authenticity of Draft/Orders before receiving!
Imtiaz Sab,
How to be secure as a buyer?
Suppose, after giving the pay order seller disappears before doing the transfer ?
Please guide.
Brother Pay Order, almost always handed over to seller during the transfer process in the transfer office. Not sure about othere but as far as CDA during transfer process photographs of buyer/seller captured along with thumb impression and PayOrder number and transfer is authorised once the seller admits all paymets cleared in front of transfer officer.
Never ever, hand over Pay Order outside transfer office and to be on safer side, even before transfer do a stamp paper both buyer seller with details of plot to be sold and Financial Instruments Numbers/Refrences to be obtained!
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Do double check with bank about PO ref. number
The process starts with a sales deed on stamp paper. Which records payment amounts and instruments/methods (cash, bank draft/ pay order). Then after transfer is completed. You handover the draft & cash of final payment.
The transferring authority (CDA, DHA, Bahria, etc.) requires that the file is in order, all installments paids and all dues are cleared (NDC) and all taxes and transfer fees paid. Only then transfer process starts in the presence of both the parties who sign and thumb stamp bunch of papers and photographs taken. Draft/PO/Cash is handed over AFTER the transfer process. If the buyer is fussy, you can show him draft/PO/Cash in the transfer office just to pacify him that your payment is in order. Never, ever pay before transfer. Just refuse to any suggestion (by your dealer or anyone) to pay before transfer.
If you're buyer, and after all this tedious process you still find any anomally in property or papers, then you can register dispute with transferring authority or go to court.
If you're seller, then you can ask for an advanced photograph of the draft / pay order and get it verified with the issuing bank. This is to rule out 0.001% chance of fake draft/PO.
Thanks Imtiaz Sb and Isloo1 for valuable information. JazakAllah