Benami Property in Pakistan: What Happens If You Hold Property in Someone Else's Name

The Benami Transactions (Prohibition) Act 2017 and the serious legal consequences of holding property in another person's name.

Holding property in another person's name (benami) is prohibited under the Benami Transactions (Prohibition) Act 2017. A benami transaction is one where property is purchased or transferred in the name of a person who is not the beneficial owner. If detected, the property is liable to confiscation by the government. The benamidar (name-lender) and the beneficial owner both face imprisonment up to 7 years and fine. Exceptions exist for property held in the name of spouse, children, or parents from known sources of income. FBR has the power to investigate and attach suspected benami properties.

Property law in Pakistan is complex because it sits at the intersection of multiple legal systems: the Registration Act 1908, the Transfer of Property Act 1882, provincial land revenue codes, local development authority regulations, and Islamic personal law for inheritance matters. Each province has its own stamp duty rates, registration fees, and procedural requirements. The situation is further complicated by the parallel existence of several record-keeping systems: the Sub-Registrar's registration record, the Patwari's revenue record (Fard), and the development authority's allotment record (for planned housing societies).

For overseas Pakistanis, property transactions carry additional risks because they must rely on agents or family members to manage the physical aspects of the transaction. Power of attorney fraud is a significant concern. LexForm advises overseas clients to use irrevocable special powers of attorney (limited to the specific transaction), conduct independent title verification before committing funds, and use secure banking channels for all payments.

How LexForm Can Help

LexForm provides comprehensive property law services including title verification, transaction documentation, mutation coordination, and litigation. We represent clients before civil courts, rent controllers, revenue courts, and the Board of Revenue. For overseas Pakistanis, we handle the entire process through power of attorney. Contact us at info@lex-form.com or WhatsApp +92-323-2999999 for a free consultation.