Mistakes overseas Pakistani make when buying property in Lahore are not only due to their absence while buying properties. In the Overseas Pakistanis Commission (OPC) Punjab, 7,814 formal complaints have been received, with the highest ratio being property-related issues. They face recurrent fraud, illegal possession, and revenue disputes over property in Pakistan. 

The property disputes are worth more than Rs. 100 billion from land grabbers, which indicates how many overseas Pakistanis are targeted. Therefore, the article will outline the most common Mistakes overseas Pakistanis make while buying property for their family. Moreover, you have real examples where the legal risk of each mistake and the specific due diligence steps are outlined. 

Common Mistakes Overseas Pakistanis Make When Buying Property in Lahore

Trusting an Acquaintance Without Understanding Legal Structure 

While making choices for property buying, the biggest mistake is trusting relatives or acquaintances who know nothing about real estate and property buying. You might send money from abroad because you trust your brother, cousin, or a friend; however, there might be gaps between what you want and what they have bought for you.

In certain cases, our overseas clients have reported that they sent money and related documents to their acquaintances to buy a property. However, when they come to Pakistan to check the bought land, it doesn’t exist. Therefore, you should not make such decisions emotionally, but contact a reliable person for such a task. 

If a second person is buying a piece of land in your stead, you must: 

  • The transaction for the land must operate under a Special Power of Attorney (SPoA), not on mere trust, a phone call, or a WhatsApp message. 
  • The plot number, size, society, and block must be properly mentioned on the SPoA. 
  • It should grant specific powers to the person buying in your stead, such as to execute a purchase, not to sell or mortgage. 
  • There should be a transaction value ceiling and an expiry date, and the Pakistani consulate/embassy in your country of residence.

You can also use the NADRA Online Power of Attorney Portal to verify or issue a POA from abroad. In such a case, you wouldn’t need to visit the embassy or consulate personally for verification. 

Skipping Title Verification Before Paying Bayana (Token Money)

Paying bayana (token money) before title verification is another mistake most overseas Pakistanis make. Bayana is necessary to enter the contractual position and to recover the money if title defects emerge when buying property. 

You should check for the following before buying the property and avoid the following factors:

  • The registry is in the name of a deceased person without inheritance documentation 
  • The seller is a partial owner without any authority to sell the plot 
  • The property is under a mortgage 
  • Court stay order or encumbrance 
  • The Khasra number on the Fard is false and does not match the physical plot.

What you should do if such things occur when buying a property is simple:

  • Obtain a fresh Fard Malkiat from PLRA; if it shows ‘Record Not Found,’ it is a forgery.
  • Cross-reference the intiqal (mutation) chain
  • For society plots, you must verify NDC status 
  • Check for stay orders or encumbrances (active litigation) 

Investing in Unapproved or Illegal Housing Schemes 

Most overseas Pakistanis do not check the Lahore Development Authority (LDA) approved public list of properties and invest in illegal schemes. Mainly, working professionals in the UK, UAE, or Saudi Arabia get trapped by early-bird files with attractive payment plans and promised investment gains. Hence, they invest in schemes that advertise legal approvals as in process or coming soon. 

If you invest in such false schemes, you are unable to obtain a registered sale deed and resell it legally. Therefore, before investing in the schemes, you must verify the following factors:

  • Check whether the society is listed on LDA’s approved housing schemes at lda.gop.pk 
  • Verify NOC numbers with LDA
  • Confirm the plot (possession ready) with the onsite infrastructure status 
  • Verify ownership through a local land record authority or professional real estate lawyer 

An England-based Pakistani, Muhammad Naseer, bought two plots in Lahore. Rather than going for renowned residential societies, he bought the plots from a newly developing residential complex. The plots were sold through forged documents, and he didn’t know how to check their authenticity. 

In the end, he did not receive possession of the two plots or justice. If he had known about the OPC intervention, this could have been resolved. 

Using Cash or Informal Payment Channels Instead of Banking

Another mistake overseas Pakistanis make when buying property in Lahore is using informal transactions, which leave no records. Most of the people prefer hundi or hawala transfers, and exchanges by family members, to avoid tax documentation. 

Without documentary proof, there is no guarantee of the sale, and the seller can claim non-payment. Additionally, the new laws stress that: 

  • Payments above PKR 5,000,000  require banking channels under Section 75A of the Income Tax Ordinance to prevent fraud. 

In addition, you can use a Roshan Digital Account (RDA) for property-related transactions, even from outside Pakistan. Moreover, the bayana, installments, and final settlements should leave a record for any possible activity. You should also have TT receipts, bank transfer confirmations, and SWIFT document records. 

Ignoring Tax Obligations and Filer Status Before Buying 

Most overseas investors and buyers overlook the tax stack. Sections 236K and Section 7E have important notices for non-filers ‘ costs while buying. Your property faces multiple federal taxes, including:

  • Section 236C (seller)
  • Section 236K (buyer)
  • Section 37(1A) CGT within five years 
  • Stamp duty
  • CVT
  • PLRA registration fees

Section 236 K mentions the advance withholding tax collected from the buyer during the transfer of the plot or house. Filers pay 3%, whereas non-filers pay around 10.5% tax. For instance, if you bought a property of about PKR 3 crore, you will have to pay approximately PKR 9 lakh as a filer. As a non-filer, you will have to pay PKR 31.5 lakh, which will be PKR 22.5 lakh more tax than a filer. 

Therefore, you should file the Pakistani income tax return and get registered for the Active Taxpayers List (ALT). As an overseas Pakistani, you should not have a Pakistani source of income while registering for ALT. 

Conclusion 

There are various common mistakes overseas Pakistanis make when buying property in Lahore. However, the most common ones are trusting a relative in buying land, non-compliance with LDA, and executing a power of attorney. Even if something goes wrong, you need not worry, as the laws for overseas Pakistanis have materially improved over the last decade. 

You have protection under the Punjab Establishment of Special Courts (Overseas Pakistanis Property) Act 2025 as well. This has created special courts across the province and will route all cases related to overseas Pakistanis. 

Read More: How to Price Your Property Correctly Before Selling in Lahore: Step-by-Step 2026 Guide

To avoid the stress and complexities of property ownership in Pakistan as an overseas Pakistani, you can trust and consult Habibi Holdings for real estate concerns. For more information on investment opportunities and booking details, contact our sales team, visit the office, or subscribe to our YouTube channel.

Phone: 0300-10-50-100

Visit us at: Jasmine Block Commercial, Sector C, Bahria Town, Lahore

Frequently Asked Questions (FAQs)

Can overseas Pakistanis buy property in Lahore without visiting Pakistan? 

Yes, you can buy property in Pakistan without physically coming here through the execution of a special power of attorney. 

Is it safe to buy a plot file in a new society in Lahore from abroad?

Yes, you can buy an open plot file of a new society from abroad, but verify its LDA and NOC before the purchase.

If I am defrauded, what recourse do I have in 2026? 

If you are defrauded, make a complaint to OPC Punjab. After filing the complaint, you should pursue the matter through the Punjab Special Courts for Overseas Pakistanis (2025 Act).

How does the Punjab Special Courts Act define overseas Pakistanis?

According to the PSC Act, you should have a valid passport, CNIC, NICOP, POC, or OPF membership card as an overseas Pakistani. Moreover, you have a foreign stay of more than 182 days in a tax year. 

For more information, visit Habibiholdings.com