mortgage Documentation Asad Ali Jafri House building finance Company ltd JULY 14, 2011

Properties or assets that are offered to secure a loan. Collateral Properties or assets that are offered to secure a loan.

Marketable Title Marketable title means that the land is free from all encumbrances and free from litigation.

Title Title can be defined as the evidence of the right which an owner has to possess his/her property.

Defected Title A title is said to be defected when there is some absence of legal requisite or deficiency, imperfection or in sufficiency in the evidence or when it is encumbered by other interest. The expression “title defects” has come to mean the existence of encumbrances, Restrictions, encroachments and other interest or claims which affects the owner’s rights over the property.

Types of Land Free hold Land Lease hold Land Evacuee Land Cantonment Land Government granted Land Allotted Land Abandoned Properties

Types of Rights Lease hold right Ownership Right

Who maintains Record of Rights Development Authorities Land Revenue Departments (Tehsildar/ Mukhtarkar) Societies Military Estate Office / Cantonment Board Evacuee Properties Trust Board Estate Office of Federal Govt. (Abandoned Properties

Forms of Legal Transfer Sale Deed Gift Deed / Relinquishment Deed Allotment Order Exchange Deed Will Grant Lease/Sub-Lease License/Sub-License

Free hold properties Registered Sale deed Last Jama Bandi OR Certified copy of City Survey extract OR Deh Form (II) Gift Deed (If property is gifted) Exchange Deed (if Property is acquired in exchange). Mutation/Transfer 1. NEC Building Plan duly approved along with covering letter

Some Land Related Nomenclature Khasra : List of folds field Register. Harvest inspection Register. Khatauni: A list of holdings of tenants. Khiwat : A list of owner’s holdings. Shajra : Map, Plan Shamilat: Village Common Land.

Other documents required for investment Karachi Division Title Documents Other documents required for investment Lease hold properties Lease/Sub-Lease/Sub-Liscence Sale Deed (if there is subsequent transaction) Gift Deed (If property is gifted) Exchange Deed (if Property is acquired in exchange). Mutation/Transfer Permission to Assign NEC / (Search Certificate) Site Plan Building Plan duly approved along with approval letter

Hyderabad/ MirpurKhas Division Title Documents Other documents required for investment Free hold properties (Rural Areas): L-20, Ownership Certificate duly issued by the Taluka Mukhtiarkar or Sanad Deh Form-VII Deh Form-II (Mutation) B. Free Hold Property (Urban Areas): P.T.O./P.T.D/Sale Deed/Gift Deed City Survey Extract/Deh Form-II (Mutation) Statement issued by the Legal Heirs along with copy of statement from City Survey in cases of heir ship C. Lease Hold Property: Lease Deed/Sub-Lease Deed/Sale Deed/Gift Deed Allotment order D. Cantonment Areas: Lease Deed Extract of the Property N.E.C. for last 12 years Approved Building Plan with approval letter Approved Site Plan Aks-e-Shajra Permission to Assign (L-19) N.E.C. from the date of execution of lease deed Clearance Certificate from MEO

Sukkur/ Larkana/ Jacobabad/ Dadu/ Khairpur Title Documents Other documents required for investment Urban Area Sale Deed P.T..D/P.T.O F.T.O. Gift deed Lease Deed/Sub-lease deed City Survey Extract Deh Form-II Deh Form-VII Mutation Rural Area Owner Ship Certificates issued by Union Council Authorities Owner Ship Certificate issued by Mukhtiarkar concerned N.E.C. Permission to Assign Approved Building Plan with approval letter Approved Building Plan Development Certificate issued by Union Council

Quetta/ Bolochistan Lease hold properties Lease Deed Title Documents Other documents required for investment Lease hold properties Lease Deed Sale Deed (in case of subsequent transaction) 3. Mutation B. Free Hold Property (Rural & Urban Area) Sale Deed (Registered) Mutation in favor of Applicant Fard Jamabandi Record for last 15 years C. Free Hold Property (with no sale deed): Mutation in Favor of applicant Jamabandi Record L-20 (Certificate of Assurance) D. Lease Hold cases of Cantonment Area Lease Deed (Registered) Sale deed (In case of a subsequent Transaction) E. Lease Hold cases where land leased by Municipal/Town Committee, Local Govt, Prov.Govt. Jamabandi Record for last 15 year Fard Jamabandi Record Sale Deed (in case there is subsequent transaction (Registered) Permission to assign N.E.C. from the date of lease deed Approved Building Plan 1. Building Plan with Building Permit N.E.C. Aks e Shajra Sakni Certificate Building Plan with Building Permit Aks-e-Shajra Site Plan Non Encumbrance Certificate Permission to Assign (L-19)

Quetta Lease deed (Patta) Registered QDA Cases where still the cost of land has not been fully paid yet) where the cost of Land has completely been paid where the house has been constructed and investment is required for further construction Sale/Purchase Agreement Final Transfer Deed (Registered). Sale Deed (Registered) Fard

Multan/ Bahawalpur Division Title Documents Other documents required for investment Free hold properties (Urban) Sale Deed/Gift Deed/Exchange Deed/Court Decree Court certified copy of Mutation Copy of record of Right (Fard Malkiyat) (b) Urban area land where no record is available in Revenue Department: P.T.D. Confirmation of P.T.D. PT-I (c) Lease Hold Property: Lease Deed/Sub Lease Deed Extract from GLR Aks-e-Shajra N.E.C. for last 12 years Approved Building plan + Approval letter N.E.C (for the last 12 years) Clearance certificate from Excise & Taxation Department Building plan + Approval letter Indemnity Bond regarding finality of P.T.D. Permission to Assign Building Plan + Approval letter N.E.C. from the date of Lease Deed Approved Building Plan

Faisalabad/ Sargodha Division Other documents required for investment Title Documents Other documents required for investment Free Hold property (Urban Area) Sale deed, Gift deed (Regd) Mutation Fard Jamanbandi B. Evacuee Property (Urban Area) PTD/PTO Confirmation of PTD (Permanent Transfer deed) C. FDA/Punjab Govt. Housing Scheme (Urban) Sale Agreement (Regd) Allotment order Transfer letter (in case of transfer of plot) D. Cantonment Board (Urban Area) Lease deed MEO letter Copy of G.L.R. E. Rural Area: Sale Deed Mutation or Oral Mutation Jamanbandi L-20 (Assurance certificate)/Demarcation Certificate Aks-e-Shijra N.E.C. Approved Building Plan with approval letter Permission to Assign Possession slip Permission to assign Approved Building Plan with Approval letter from District Council/Union Council concerned

Lahore/Gujranwala Division Title Documents Other documents required for investment Free Hold Properties: Registered Sale Deed Certified copy of Mutation Jamabandi L-20 (In case of rural area) B) Government Schemes: Registered Sale Agreement/Sale Deed Transfer letter/Allotment letter C) Lease Hold & Contentment Schemes: Registered Lease deed/Sub-Lease General Land Register (Certificate) Akse-Shujra N.E.C. Building plan with approval letter Permission to assign Possession order Site Plan Building Plan with approval letter

Islamabad (Capital Area)Other cities of Islamabad Zone Title Documents Other documents required for investment Allotment Letter/Transfer order After completion of house a Conveyance Deed is executed between CDA and Allottee a) Free hold properties (Urban 1. Registered Sale deed/Gift Deed Last Jamabandi, or city survey record Mutation or sakni certificate from Tehsildar if plot is Shamile Abadi Area b) Free hold property (Rural) The following documents are required in addition to above documents: 1. L-20 from Tehsildar Permission to Assign Site Plan/ Layout Plan Demarcation Certificate Up to date NEC Approved Building plan along with approval letter Certificate of soundness/value of building for house purchase Possession order/slip Akse Shajra duly demarcated Approved Building Plan Co-sharer Affidavit (in case of co-sharer)

Islamabad (Capital Area)Other cities of Islamabad Zone (…….. Contd…..) c) Lease hold property of Cantonment Area Lease deed/Sub Lease duly registered GLR (General Land Register) d) Evacuee Property: Permanent Transfer Deed PT-1 Subsequent Transfer Permission to Assign Possession order Site Plan of Plot Upto date NEC Approved Building Plan Letter of approval of the building plan 1. Upto date NEC 2. Site Plan 3. Original Approved Building plan with approval letter

Government Colonies/Lease Hold Properties: Sale Agreement duly registered Allotment order Rural Area property: Oral Mutation (Court Certified Copy) Building Plan + Approval Letter Mutation (Court Certified Copy) Copies of Record of Right (Fard Malkiyat) for the Last 12 Years L-20 (HBFC/Certificate of Assurance) by tehsildar (Sakni Certificate) . N.E.C. (for the last 12 Years)

Possession Slip Site Plan Permission to Assign N.E.C. (from the date of Sale Agreement) Building Plan + Approval Letter Aks-e-Shajra N.E.C. Permission to Assign (L-19) Building Plan with Building Permit

Peshawar Division/ NWFP Other documents required for investment Title Documents Other documents required for investment Lease Hold Properties: Sale Deed Lease Deed Gift Deed Permanent Transfer Deed in case of Evacuee Property (PTD) Mutation Certificate B. Free Hold Properties: Last Jamabandi or City Survey Extract Sale Deed (in case of purchase) Mutation Permission to Assign Approved Building Plan with approval letter Approved Site Plan Certificate of Assurance by Collector N.E.C. Aks-e-Shajra Building Plan

Abbottabad/Hazara Division/ Northern Areas Title Documents Other documents required for investment A. Lease Hold Properties: Lease deed or agreement for sale/Sale deed B. Free Hold Property: Mutation Last Jamabandi Sale deed (in case property is purchased by applicant) C. Un-Settled Area of Northern Areas: Un-settled area form (designed by HBFC Management) L-20 Site plan of the plot Permission to Assign N.E.C. Approved Building Plan with approval letter Aks-e-Shajra Site plan Assurance Certificate (L-20 in case of Rural Area) Approved Building Plan with approval letter.

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