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Property Law in Pakistan — Sale, Mortgage, Lease and Exchange

How the Transfer of Property Act 1882 defines a sale, a mortgage, a lease and an exchange of plots — answered from the Act itself, section by section.

  • Transfer of Property Act 1882
  • 2025 LHC 3173 — QAMAR UL ISLAM VS PROVINCE OF PUNJAB ETC (Mr. Justice Jawad Hassan)

Every answer below comes from the text of the statute named beside it — Transfer of Property Act 1882 — as held in the Irshad AI Employee law library, and links to the official document so you can read the provision yourself.

This is research assistance, not legal advice. Statutes are amended: open the official text before relying on anything here, and speak to an advocate about your own matter.

How does the Transfer of Property Act define a sale?

جائیداد کی بیع کی قانونی تعریف کیا ہے؟ Jaidad ki baiy (sale) ki qanooni tareef kya hai?

Under Section 54 of the Transfer of Property Act, 1882, a sale is “a transfer of ownership in exchange for a price paid or promised, or part-paid and part-promised.” A contract for the sale of immovable property only provides that a future sale will occur on agreed terms; by itself, it does not create any interest in or charge on the property.

Source: Transfer of Property Act 1882 — section 54, p. 8, 11 · read the official text

What is a mortgage under the Transfer of Property Act?

رہن قانون کے مطابق کیا ہوتا ہے؟ Rehan (mortgage) kya hota hai qanoon ke mutabiq?

Under section 58 of the Transfer of Property Act, 1882, a mortgage is the transfer of an interest in specific immovable property to secure: - money advanced or to be advanced as a loan or financing; - an existing or future debt; or - performance of an engagement that may create a monetary liability. Once validly created, the mortgagor’s interest transfers to the mortgagee to that specific extent, and the mortgage charge travels with the property.

Source: Transfer of Property Act 1882 — section 58, p. 1, 8, 30 · read the official text

How does the Transfer of Property Act define a lease?

اجارہ یعنی لیز کی قانونی تعریف کیا ہے؟ Ijara (lease) ki qanooni tareef kya hai?

Under section 105 of the Transfer of Property Act, 1882, a lease is the transfer of a right to enjoy immovable property for a certain period—express or implied—or in perpetuity. It is made in return for a price paid or promised, money, a share of crops, services, or another thing of value, rendered periodically or on specified occasions by the transferee to the transferor, on accepted terms.

Source: Transfer of Property Act 1882 — section 105, p. 8, 11 · read the official text

Can two owners simply swap their plots, and what is such a transaction called?

دو مالک اپنے پلاٹ آپس میں بدل سکتے ہیں، اسے کیا کہتے ہیں؟ Do maalik apne plot aapas mein badal saktay hain, is ko kya kehte hain?

Yes. Two owners may mutually transfer ownership of their plots; this transaction is called an “exchange” under section 118 of the Transfer of Property Act, 1882. The property transfers must be completed in the same legal manner required for a sale.

Source: Transfer of Property Act 1882 — section 118, p. 51 · read the official text

Is it safe to buy a property that is the subject of a pending court case?

کیا زیرِ سماعت مقدمے والی جائیداد خریدنا محفوظ ہے؟ Kya zer-e-samaat muqadme wali jaidad kharidna mehfooz hai?

No. Buying property that is already the subject of a pending court case carries significant legal risk. Under Section 52 of the Transfer of Property Act, 1882, the doctrine of lis pendens applies when rights in immovable property are directly and specifically disputed in a non-collusive proceeding. A purchaser during that litigation acquires the property subject to the court’s eventual decision; the sale cannot be used to defeat the ends of justice. The Lahore High Court has also recognized that pending litigation constitutes an encumbrance and may be noted in the property record to alert subsequent purchasers.

Source: 2025 LHC 3173 — QAMAR UL ISLAM VS PROVINCE OF PUNJAB ETC (Mr. Justice Jawad Hassan) · read the official text

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Research assistance, not legal advice. Statutes are amended — open the official text linked beside each answer before relying on it, and consult an advocate about your own matter.

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