Agriculture is considered the backbone of the economy of Pakistan, which relies on its major crops. Interestingly, agriculture accounts for about 18.9% of Pakistan’s GDP, making it significant. The prime province in Pakistan is Punjab for agriculture, where cotton and wheat are the most grown. Moreover, mango orchards are found in Punjab and Sindh provinces, making it the world’s fourth largest producer of mangoes. Due to the growing demand for agricultural land, it can be an excellent choice for investment. In this blog, we will discuss how you can buy agricultural land in Pakistan.
Is it a Good idea To Invest in Agricultural Land?
Pakistan is an agricultural country, and a majority of its population earns in the agriculture sector due to weak infrastructure. The growth in the agricultural sector is due to better yields, subsidies on fertilisers, effective policies, and other commodities.
Many years ago, agricultural farmlands were considered gold mines because of the income and profit they created. At that time, selling such fertilised lands was a big toll. However, destruction by floods and inflation has made the farmers more rigid and worn out.
Due to the potential for profit and income in agricultural land, buying agricultural land in Pakistan is a great choice. If you are looking to start a farming business, embrace a rural lifestyle or secure a long-term asset. Now let’s discuss more about the zoning and legal aspects of agricultural land in Pakistan.
Identifying Suitable Land
If you are thinking of buying agricultural land, then you must consider the purpose of buying agricultural land. You should understand the purpose of buying land, like if you are planning to cultivate crops or invest in land appreciation.
Once you identify your objective, you will start researching the ideal location and size of your need. Moreover, research about soil fertility and various areas, accessibility, and water supply. It is very important to know the availability of water because, in many regions, it is difficult to get access to water. At this stage, you must know why and where you are going to buy your land because, after this, you will start the buying procedure. You can also get assistance from the best real estate developers to proceed smoothly.
Check for Land Ownership and Title Deeds
Once you decide which land you want in Pakistan, you must start looking for more details. One of the most crucial steps in buying land in Pakistan is to verify the ownership.
Here are a few tips for you to know if the seller has legal rights to the property:
You must ask for the Fard, which is the Record of Rights. This document is quite important for you to verify the ownership, and you can get it from the Land Revenue Department to confirm ownership details.
Now, check the title deeds and ensure that the seller possesses a clear title in his name. This will ensure that the land is free from any complications or disputes.
You must confirm that the legal heirs have given their consent to sell the property. Moreover, you must confirm that the land is not pledged as collateral or mortgaged.
Understand the Land Use Regulations and Zoning Laws
Pakistan has some zoning regulations that estimate how land can be used. Before you buy any land, you must ensure that it falls under an agriculture zone and is not for residential or industrial use.
Each province has its own zoning and land use regulations, so check the provincial law where you are buying your land. If you think about converting your agricultural land in the future, you must check for conversion restrictions.
Check for environmental compliance because some areas might have restrictions on the type of farming activities.
Get Necessary Approvals and Documentation
If you want a tension-free purchase, then you will need to complete all the formalities.
First, draft a sale agreement between the seller and buyer detailing the terms of the transaction. You will have to pay the required government taxes for registration.
After that, you must apply for the mutation of land records at the local revenue office to officially transfer ownership.
In some cases, it is possible that you might require a No Objection Certificate (NOC) from the district administration.
Verify Water and Irrigation Rights
As you are buying agricultural land, water access is crucial for all the activities. Ensure the land has legal water rights from tube wells, canal irrigation, or any other sources. Check with the local irrigation department to ensure that there are no restrictions on water usage.
Get Legal Assistance
Buying agricultural land is not as simple as it looks. Because of the complexities of land transactions in Pakistan, it is a good idea to consult a legal expert. A legal expert can help you navigate the process of buying land smoothly. A real estate attorney can also help you review and verify the legal documentation before finalising the deal.
Final Thoughts
Buying agricultural land in Pakistan needs patience, due diligence, and legal awareness. First of all, you must know why you are buying agricultural land in Pakistan. Once you understand the purpose of buying land, then you can proceed properly in one direction and know which things you must check. Before buying land, always verify the land ownership, have proper documentation, and understand zoning laws. Invest wisely and get proper information about the land before taking any further steps.
