Legal Advice on Pakistan Real Estate, Landlord and Tenant Laws

Josh and Mak International, offers a comprehensive suite of legal services to address the various needs of both landlords and tenants.

• Legal Consultation and Advisory Services:
  • Offer expert legal advice to landlords and tenants on their rights, responsibilities, and obligations under the Islamabad Rent Restriction Ordinance, 2001.
  • Provide legal opinions on the validity of lease agreements, the applicability of the Ordinance, and procedural requirements for dispute resolution.
• Drafting and Reviewing Rental Agreements:
  • Prepare legally sound rental agreements that protect the interests of both landlords and tenants, ensuring clarity on terms, tenure, and eviction clauses.
  • Review and advise on existing rental contracts to ensure compliance with the latest legal provisions and case law precedents.
• Representation in Rent Disputes:
  • Represent clients in negotiations and disputes relating to rent amounts, payment defaults, and other tenancy issues.
  • Offer representation in rent controller courts and higher judicial forums for dispute resolution.
• Eviction Proceedings:
  • Guide landlords through the legal process of eviction, ensuring all procedural and notice requirements are met.
  • Defend tenants against unlawful or unjust eviction attempts, leveraging legal precedents to protect their tenancy rights.
• Recovery of Possession:
  • Assist landlords in the recovery of possession of their property from tenants, following the due legal process.
  • Help tenants in re-occupation claims if the landlord fails to use the premises for the stated bona fide need.
• Rent Increase and Security Deposit Issues:
  • Advise on the legal framework governing rent increases and the handling of security deposits.
  • Represent clients in legal proceedings concerning disputes over rent hikes and the return of security deposits.
• Legal Workshops and Seminars:
  • Conduct educational workshops and seminars for landlords and tenants to inform them of their legal rights and updates in the landlord-tenant laws.
• Drafting Legal Notices:
  • Draft and serve legal notices for eviction, rent payment, lease termination, and other tenancy-related matters in compliance with legal requirements.
• Renegotiation of Lease Terms:
  • Facilitate the renegotiation of lease terms to reflect changes in the law or the needs of the parties.
• Jurisdictional Challenges:
  • Advise and represent clients in jurisdictional challenges, ensuring the correct legal forum is approached for dispute resolution.
• Property Management Legal Services:
  • Provide legal support for property management companies in dealing with tenants, including drafting lease agreements, handling evictions, and ensuring regulatory compliance.

By offering these services, we  ensure that our clients, whether landlords or tenants, are well-represented and their interests are safeguarded within the framework of the law. Our commitment to effective client communication will be at the core of these services, ensuring that our clients are kept informed and involved at every stage of the legal process.

Our Client Information Article continues below:

What does the Pakistan Real Estate, Landlord, and Tenant Law Actually Consist Of? The answer to this question is neither simple nor easy to understand given the complex terminologies you will have to face if you do not own land in a modern housing society or the Federal Capital.The article below is aimed at helping our clients understand how the Pakistan Real Estate, Landlord, and Tenant Laws actually work! If you have a legal query, please get in touch at [email protected]

To access our Guide for Local and Overseas Pakistanis, as well as Foreigners wishing to invest/buy property in Pakistan click here

To access our Client Information Article on  Legal Remedies Sealing of Premises by Government Authorities click here 

We have updated this article to 2023 with Land and Tenant Laws for Islamabad specifically. An older version of this article continues down below:

Landlords and tenants in Islamabad often contest the grounds of eviction, particularly regarding the personal bona fide need of the landlord and the expiry of the lease agreement. It is crucial for landlords to clearly establish their grounds for eviction to successfully navigate the legal landscape as outlined by the Islamabad Rent Restriction Ordinance, 2001. Tenants must be aware of their rights and the circumstances under which they may be evicted, as well as the importance of maintaining rent payments and observing lease terms. It is advisable for both parties to seek legal counsel to ensure that their actions are in compliance with the statutory requirements.

Summary of Advice For Tenants:

• Statutory Tenancy Rights: Tenants have rights under the Islamabad Rent Restriction Ordinance, 2001, which turn into statutory tenancy upon the demise of the original tenant, as seen in the case of Javed Khan Abbasi vs. Zubair Aslam (2012 SCMR 248).
• Protection Against Unjust Eviction: Tenants are protected against eviction without proper legal grounds or procedure, as outlined in the Ordinance.
• Right to Re-Occupation: If a landlord evicts a tenant on the grounds of personal bona fide need and fails to use the premises for that need, tenants may have the right to be re-inducted into the premises (2012 CLC 1257).
• Challenge of Jurisdiction: Tenants can challenge the jurisdiction of the courts if the proper notification under the Ordinance has not been issued for their area, as seen in Jamil Ahmad vs. Additional District Judge, Islamabad (2003 YLR 1894).
• Notice Requirement: Tenants should be aware that landlords are required to serve notice as per Section 19 of the Ordinance before eviction for default in payment (2004 SCMR 1852).
• Pagri is Not Recognized: Advance payments or “Pagri” are not recognized under the Islamabad Rent Restriction Ordinance, 2001, and cannot be used to counter eviction proceedings (2005 YLR 295).
• Lease Agreement Terms: Tenants should be aware that the expiry of a lease agreement does not automatically entitle the landlord to eviction; the landlord must still follow the grounds specified in Section 17 of the Ordinance (2010 YLR 1521).

Summary of Advice For Landlords:

• Grounds for Eviction: Landlords can seek eviction based on personal bona fide need, default in payment, expiry of lease agreement, and other grounds specified in the Ordinance.
• Procedural Compliance: It is crucial for landlords to comply with procedural requirements, such as issuing proper notice, before initiating eviction proceedings (2004 SCMR 1852).
• Proof of Bona Fide Need: Landlords must provide sufficient proof of their bona fide need to evict a tenant, as mere assertions without evidence are not sufficient (2010 YLR 1521).
• Pagri and Eviction: Accepting “Pagri” does not bar landlords from initiating eviction proceedings, provided the need is genuine and proven (2005 MLD 1493).
• Multiple Grounds for Eviction: Landlords can cite multiple grounds for eviction, such as personal need and renovation or expiry of the lease, provided they are genuine and can be substantiated (2010 YLR 1490).
• No Exemption for Mutual Agreements: Any mutual agreements with tenants, such as Pagri or advance rent, do not exempt landlords from the legal process of eviction (2005 MLD 1493).
• Jurisdictional Challenges: Landlords must ensure they are approaching the correct legal forum for eviction proceedings, as jurisdictional challenges can nullify the eviction process (2003 YLR 1894).

Both tenants and landlords in Islamabad must navigate their disputes with a clear understanding of their legal rights and obligations under the Islamabad Rent Restriction Ordinance, 2001. It is advisable for both parties to seek legal advice when entering into or contesting an eviction to ensure compliance with the law and to protect their respective interests.

The Islamabad Rent Restriction Ordinance, 2001, is a legal instrument that governs the rental relationships between landlords and tenants in Islamabad. It provides a framework for addressing disputes, outlines the process for eviction, and establishes the responsibilities and rights of both parties. This ordinance is crucial for maintaining order in the rental housing market of Islamabad, ensuring protection for tenants and landlords alike.

At the heart of this Ordinance is the definition section which provides clarity on various terms used throughout the legislation. The term ‘building’ encompasses not only the physical structure but also includes any attached land or fixtures, while explicitly excluding places of religious worship. Residential and commercial buildings are differentiated, with the former being used for living purposes and the latter solely for business or trade. This distinction is crucial as it determines the applicability of certain provisions of the Ordinance.

The Ordinance applies to the urban areas of the Islamabad Capital Territory as specified by the Federal Government and dictates the appointment of Rent Controllers to oversee rent-related disputes. These Controllers play an instrumental role in ensuring fair practices in the rental market. They are empowered to determine ‘fair rent’ and to resolve disputes, acting as judicial figures to maintain order and fairness within the rental sector.

The Ordinance requires that all rental agreements be in writing and attested by the Controller, a Civil Judge, or a Magistrate of the first class. This provision ensures legal sanctity and traceability of the terms agreed upon by the landlord and tenant, providing a clear basis for any future disputes. Additionally, the Ordinance outlines the tenure of tenancy, making it clear that no tenancy can be valid beyond the mutually agreed period. This is particularly significant as it provides both parties with a clear understanding of the duration of the rental agreement and the conditions under which it can be terminated.

Regarding rent adjustments, the Ordinance prohibits landlords from charging more than the fair rent unless there have been improvements or alterations made with the tenant’s consent and in accordance with Authority by-laws. This serves to prevent unjustified rent increases and ensures that tenants are not unduly burdened financially. Furthermore, the Ordinance stipulates an automatic increase of 25% in rent every three years, reflecting the changes in market conditions while providing predictability for both landlords and tenants.

The protections for tenants are robust within the Ordinance. Landlords are prohibited from demanding premiums or other sums beyond the fair rent. If any such amounts are paid, the tenant has the right to recover these sums or deduct them from future rents, subject to approval by the Controller. Moreover, tenants are protected from the withdrawal of amenities by landlords, a practice that could otherwise be used coercively to evict tenants or to force them to accept new terms. The Ordinance empowers tenants to seek restoration of such amenities through the Controller.

When it comes to maintenance and repairs, the Ordinance ensures that landlords are responsible for keeping the property in a reasonable state of repair. Should the landlord fail to do so, tenants have the right to carry out necessary repairs and deduct the costs from their rent, within certain limits. This provision incentivizes landlords to maintain their properties and provides tenants with a recourse to ensure their living or working conditions are preserved.

The Ordinance also provides for the reimbursement of expenses incurred by tenants for repairs directed by the Authority, further reinforcing the tenant’s right to a well-maintained property. This creates a mechanism for tenants to ensure that essential repairs are carried out without undue financial burden.

In conclusion, the Islamabad Rent Restriction Ordinance, 2001 is a comprehensive piece of legislation that provides a legal framework to regulate the relationship between landlords and tenants. It ensures that tenants are protected from unfair rent practices and have access to essential amenities, while also providing a mechanism for landlords to receive fair compensation for their properties. The Ordinance’s clear definitions, structured processes, and the role of the Rent Controller contribute to a fair and orderly rental market in Islamabad. For both landlords and tenants, understanding and adhering to this Ordinance is crucial for maintaining a harmonious and lawful rental relationship.

Section 17 of the ordinance is pivotal as it outlines the circumstances under which a tenant can be evicted from the rented premises. It is crucial to note that eviction can only occur in accordance with the provisions detailed within this section. This section essentially serves as a protective measure for tenants against arbitrary evictions while also ensuring that landlords can reclaim their property when justified.

Under subsection (2), a landlord must apply to the Controller for eviction, providing the tenant a fair chance to present their case. The reasons for eviction range from non-payment of rent within the specified period, the tenant subletting or transferring the lease without consent, misuse of the property, causing nuisance to neighbors, or the landlord’s genuine need to reconstruct the building.

Notably, subsection (4) provides the landlord with the right to reclaim a residential building for personal occupation or that of a family member, under the condition that they are not currently occupying a suitable alternative residence in the same urban area. For commercial properties, the landlord must demonstrate a bona fide requirement for their own or a family member’s use.

Subsection (6) safeguards the tenant’s interests by allowing them to reclaim possession if the landlord, after eviction under subsection (5), does not occupy the premises within one month or relets it within six months.

In cases where a landlord seeks eviction for reconstruction or erection of a new building (subsection (7)), they are mandated to commence the work within four months; failure to do so can result in penalties.

Subsection (8) underscores the tenant’s obligation to pay rent during the eviction proceedings, specifying the consequences of non-payment, which include dismissal of the tenant’s defense or application.

Section 18 introduces additional provisions for eviction in circumstances where the landlord is a retired salaried employee, a widow, or a minor orphan. It enables such landlords or their family members to reclaim possession for personal use by providing a two-month notice. The protection offered to tenants includes a time-bound window for landlords to make an application for eviction, ensuring that this provision is not misused.

Section 19 addresses the transfer of property ownership and mandates the new owner to notify the tenant. It provides a safety net for tenants, ensuring they are not deemed defaulters for non-payment of rent if they are not appropriately informed of the ownership change.

Sections 20 to 22 detail the procedural aspects related to appeals and transfers of cases. These sections establish the mechanisms for challenging decisions and for the efficient management of cases, thereby ensuring that the adjudication process is fair and accessible.

Section 23 of the ordinance specifies the execution of orders similar to a civil court decree. This section ensures that orders made under sections 14, 17, and 18, as well as those passed in appeal under section 21, are executed with the same efficacy and enforceability as those of a civil court. The inclusion of Order XXI of the Code of Civil Procedure, 1908, indicates the adherence to established civil procedural norms, ensuring that the execution of orders is conducted with due diligence and within the legal framework.

Section 24 lays out the procedures and powers of the Controller. This section is significant as it dictates that no order under the specified sections can be made without an inquiry and an opportunity for the parties to be heard, thus upholding the principles of natural justice. The Controller is vested with the powers equivalent to a civil court when conducting an inquiry or executing orders, which includes summoning witnesses, compelling the production of documents, and issuing commissions for witness examinations. This comprehensive power ensures that the Controller has the necessary authority to conduct thorough and fair proceedings.

Section 25 discusses the service of summons and the production of witnesses. It emphasizes that once a summons is served, it is sufficient for the entirety of the proceedings. The responsibility to produce witnesses lies with the parties involved, and the Controller may only summon a witness in certain circumstances. Additionally, the Controller is expected to dispose of applications within four months of the first hearing, demonstrating the ordinance’s commitment to resolving disputes promptly.

Section 26 introduces penalties for frivolous or vexatious applications. If a party is found guilty of making false claims or unnecessarily prolonging proceedings, compensation will be awarded to the aggrieved party. This acts as a deterrent against the misuse of the legal process and encourages parties to engage in litigation responsibly.

Section 27 requires landlords and tenants to furnish necessary particulars about the rented property to the Controller, ensuring transparency and record-keeping. This requirement aids in dispute resolution and ensures that the Controller has access to all relevant information.

Section 28 establishes penalties for non-compliance with the ordinance or rules made thereunder, with fines extending up to five thousand rupees. This section underscores the importance of adherence to the ordinance and establishes a mechanism for legal recourse in case of contravention.

Section 31 empowers the Federal Government to make rules to fulfill the purposes of the ordinance, allowing for adaptability and updates to the legal framework as needed.

Finally, Section 32 signifies the repeal of the West Pakistan Urban Rent Restriction Ordinance, 1959, within the Islamabad Capital Territory, indicating that the Islamabad Rent Restriction Ordinance, 2001, is the prevailing law governing rent restrictions in Islamabad.

In essence, the ordinance is designed to foster a fair and equitable rental market in Islamabad. By delineating clear processes for dispute resolution, eviction, and the execution of orders, and by establishing the Controller’s role and authority, the ordinance works to protect the rights of both landlords and tenants. This legal framework contributes to the stability of the housing market by providing predictable and structured mechanisms for addressing conflicts, thereby ensuring a balanced approach to rental agreements and the peaceful enjoyment of rented premises in Islamabad.

The key takeaways from the Islamabad Rent Restriction Ordinance, 2001, which shape landlord and tenant laws in Islamabad, are as follows:

• Eviction Process: Tenants cannot be evicted without due process. Landlords seeking to evict tenants must apply to the Controller and can only do so under specific circumstances such as non-payment of rent, subletting without consent, misuse of the property, or when the property is required for personal use or reconstruction.
• Protection against Unlawful Eviction: The ordinance provides tenants with protection against unlawful eviction by requiring the landlord to approach the Controller and follow a legal procedure, ensuring tenants have the opportunity to show cause against eviction.
• Landlord’s Right to Recover Property: Landlords can recover possession of their property for personal occupation or if they need to reconstruct the building, provided they have obtained the necessary permissions.
• Tenant’s Obligations: Tenants must pay rent on time, use the property only for its intended purpose, and maintain the property without diminishing its value or utility.
• Summary Ejectment: In specific cases, such as when a landlord is a widow or a retired salaried employee, the landlord can give notice for eviction and seek summary ejectment of a tenant who fails to comply.
• Protection for Landlords: Landlords are protected against tenants who do not pay rent on time or misuse the property. If a tenant fails to deposit rent as directed by the Controller, the defence can be struck off, leading to eviction.
• Fair Hearings: Orders affecting eviction or rent are not issued without an inquiry and a chance for both parties to be heard, ensuring fairness and due process.
• Execution of Orders: Orders made by the Controller are executed as if they were decrees from a civil court, giving them a high degree of enforceability.
• Appeals: There is a provision for appeals against the Controller’s orders to the District Judge, ensuring an additional layer of scrutiny and justice.
• Procedure and Powers: The Controller has the same powers as a civil court in respect of summoning and examining witnesses, document production, and the commissioning of witness examinations.
• Prompt Resolution: The ordinance emphasizes the expeditious resolution of disputes, aiming to conclude matters within four months of the first hearing.
• Penalties for Abuse: The ordinance discourages frivolous litigation by imposing fines for frivolous applications or defences.
• Information Disclosure: Landlords and tenants are required to provide necessary particulars to the Controller, fostering transparency in the rental relationship.
• Transfer of Ownership: Ten tenants must be informed of changes in ownership, and they have a grace period for rent payment following such notification.
• Rules and Amendments: The Federal Government is empowered to make rules for carrying out the ordinance’s purposes, allowing for legislative flexibility and responsiveness to changing needs.
• Repeal of Previous Law: The ordinance repeals previous rent restriction laws within the Islamabad Capital Territory, making it the primary legal framework for rental matters.

A review of legal decisions 

Landlord and tenant disputes  in Islamabad, the federal capital territory of Pakistan, often revolve around the application and interpretation of the Islamabad Rent Restriction Ordinance, 2001, and its subsequent amendments. The cases cited below reflect a variety of disputes commonly litigated in this domain, shedding light on the intricacies of legal practice within the region.

1. The case of Miss Memoona Zainab Kazmi v. Additional District Judge (MCAC) Islamabad West, as reported in 2023 CLC 207 Islamabad, underscores the significance of the mandatory nature of alternative dispute resolution, as mandated by the newly inserted Section 16A of the Islamabad Rent Restriction Ordinance, 2001. The provision’s legislative intent is clear: to refer every case to the Mediation Council in line with Article 38(A) of the Constitution of Pakistan, which aims for equitable adjustment of rights between landlords and tenants. This reflects a trend towards encouraging mediation over litigation to resolve such disputes.
2. The interpretation of terms like “goodwill” and “pagri” has been a subject of contention. In the same case citation, the courts have clarified that while goodwill — a business’s reputation that enhances its value — is recognized, the concept of “pagri”, which is a non-legal recognition of goodwill often involved in rental transactions, is not acknowledged by law and cannot affect the maintainability of eviction proceedings.
3. The matter of eviction upon expiry of the lease agreement, as illustrated in the case of Muhammad Iqbal Qureshi v. Rent Controller, Islamabad-West (2022 YLR 1972 Islamabad), emphasizes the importance of mutual understanding in lease renewals and compliance with procedural requirements, such as the provision of notice. This showcases that a tenant’s lack of adherence to lease terms or procedural protocols can lead to eviction.
4. In Muhammad Azhar v. Additional District Judge-VII, West, Islamabad (2020 YLR 932 Islamabad), the court’s interpretation of a periodic tenancy and the recognition of a landlord’s bona fide need further affirm the basis for eviction under the ordinance.
5. The issue of denial of the landlord-tenant relationship, as seen in Yasin Khan v. Additional District Judge No.VII, District Judge West, Islamabad (2019 YLR 2894 Islamabad), illustrates the Rent Controller’s jurisdiction in determining the existence of such a relationship, a common dispute point in these cases.
6. The case of Asad Amin v. Noor Hussain (2019 YLR 902 Islamabad) deals with the tenant’s unilateral actions regarding property repairs and rent adjustments, delineating the procedures under Section 15 of the ordinance for such situations.
7. In Shuja Ahmed v. Additional District Judge (West), Islamabad (2019 MLD 590 Islamabad), the violation of lease agreements, particularly concerning the use of premises, is addressed, highlighting the Rent Controller’s role in eviction proceedings and the enforcement of zoning regulations.
8. The Supreme Court ruling in Waqar Zafar Bakhtawari v. Haji Mazhar Hussain Shah (2018 PLD 81 Supreme-Court) further clarifies the grounds for eviction post-expiry of the tenancy period, indicating that tenants holding over without explicit consent are liable for eviction.
9. Ch. Naseer Ahmed v. Rent Controller (2018 YLR 29 Islamabad) points out the limitations of arbitration clauses in tenancy agreements regarding eviction matters, asserting the precedence of the Rent Controller’s jurisdiction over arbitration proceedings.
10. The case Panther Developers through Ghulam Jillani v. Additional District Judge (ADJ), West, Islamabad (2018 MLD 1595 Islamabad) discusses the implications of non-compliance with interim rent orders and the conditions under which a tenant’s defense may be struck off, emphasizing the importance of timely rent payment and compliance with procedural orders.
11.  In the 2017 YLR 681 Islamabad case, the court set aside lower court orders for the eviction of a tenant who had failed to deposit rent due to a change in property ownership, which the tenant was not aware of. The court highlighted that such matters should be resolved with due evidence and not through penal measures like striking off the tenant’s defence.
12. Similarly, in the 2017 MLD 1432 Islamabad case, the eviction was sought on the basis of personal bona fide need by the legal heirs of the original landlord. The courts upheld the eviction, noting that landlords have a choice regarding the use of their properties, and this discretion is not typically assailable unless bad faith is evident.
13. Another recurring issue is the strict adherence to the procedure for eviction as stipulated in the Islamabad Rent Restriction Ordinance, 2001. For example, in the 2017 MLD 53 Islamabad case, the High Court provided guidelines for Rent Controllers, emphasizing the need to conclude eviction proceedings within the statutory period of four months.
14. The 2017 CLC 1242 Islamabad case addressed the interpretation of the term ‘monthly rent which subsequently becomes due’ and the tenant’s obligations under a tentative rent order. The court clarified that tenants must comply with the Rent Controller’s order regarding the payment of rent, and failure to do so can have penal consequences.
15. Cases such as 2017 CLC 1043 Islamabad and 2016 YLR 405 Islamabad highlighted the requirement for a written lease agreement and compliance with the provisions of the Rent Restriction Ordinance, reinforcing the need for clear documentation and adherence to legal procedures.
16. The case 2015 YLR 2405 Islamabad case illustrated the consequences of defaulting on rent payments, even if the delay is slight, and the 2015 MLD 1740 Islamabad case delved into the grounds for eviction for reconstruction purposes, which is an independent ground from personal bona fide need.
17. Statutory Tenancy and Ejectment Petitions: In the case of Javed Khan Abbasi vs. Zubair Aslam (2012 SCMR 248), it was highlighted that the legal heirs occupying the premises after the death of a tenant can become statutory tenants under Section 2-J(ii) of the Ordinance. This case underlines the importance of recognizing the continuation of tenancy through legal heirs, which is a significant factor in Islamabad’s landlord and tenant disputes.
18. Filing of Multiple Ejectment Petitions: Saeed Ahmad vs. Mrs. Rehana Zahid (2012 MLD 1072) clarified that a second ejectment petition is permissible under certain circumstances, even without permission from the Rent Controller, especially if the first petition was withdrawn and not decided upon, thus not falling under the restrictions of Section 20.
19. Personal Bona Fide Need: The case of Nadeem Asghar vs. Dr. Sheikh Siraj-ul-Haque (2012 CLC 1257) reinforces the landlord’s right to evict a tenant for personal bona fide need, provided the need is not successfully negated by the tenant. This is backed by Section 17, which details the grounds on which a landlord can seek eviction.
20. Expiry of Lease Agreement: In Major (Rtd.) Nadeem Uddin Khalid vs. Bushra Begum (2011 YLR 765), the court held that after the expiry of a lease agreement, the tenant loses the right to occupy the premises, thus affirming the landlord’s right to seek eviction on these grounds.
21. Default in Payment of Rent: Liaquat Ali’s case (2011 PLD 14) highlights the consequences of non-payment of rent, which can lead to the eviction of the tenant under Section 17(9) of the Ordinance.
22. Grounds of Ejectment: The cases of Zulfiqar Ahmad (2010 YLR 1521) and Zafar Mehmood (2010 YLR 1490) illustrate the various grounds on which a landlord can seek eviction, including bona fide personal need, reconstruction needs, and the expiry of lease agreements. These cases assert the multiplicity of grounds that can be relied upon for eviction, as per Section 17.
23. Ejectment on Expiry of Lease Term: In Qaiser Javed Malik vs. Pervaiz Hameed (2009 SCMR 846), it was explained that the expiry of a lease term does not automatically lead to eviction unless the grounds mentioned in Section 17 are also met.
24. Pagrri System: The case Irshad Ahmed Khokhar vs. Amir Akbar Khan (2005 YLR 295) dealt with the concept of “Pagrri”, an advance payment, which is not recognized under the Islamabad Rent Restriction Ordinance, 2001, highlighting a disconnect between traditional practices and statutory provisions.
25. Expiry of Lease Period and Ejectment: Mst. Munawar Sultana’s case (2005 CLC 1119) emphasized that a tenant cannot be evicted merely on the basis of lease expiry and must be evicted on grounds as stipulated in Section 17 of the Ordinance.
26. Pagri and Eviction Proceedings: In the case involving Amir Akbar Khan and Irshad Ahmed Khokhar (2005 MLD 1493), the contention regarding “Pagri” was addressed. Despite the tenant’s claim of having paid “Pagri”, the court repelled the plea that the landlord, having received such an amount, was debarred from seeking eviction based on bona fide personal need. This highlights that mutual arrangements external to the Ordinance cannot be utilized to circumvent statutory eviction procedures.
27. Bona Fide Personal Need: The same citation (2005 MLD 1493) also discussed the scope of the landlord’s bona fide personal need, emphasizing that the landlord’s right to evict a tenant for personal use is preserved, and the protection given to tenants under Section 17(6) allows them to seek re-occupation if the landlord fails to use the premises for the stated need.
28. Requirement of Notice: In Sher Jang vs. District Judge, Islamabad (2004 SCMR 1852), the Supreme Court granted leave to appeal on the issue of whether a tenant can be evicted for default of rent without the landlord issuing a notice as required by Section 19 of the Ordinance. This case signifies the importance of procedural compliance and the court’s intention to resolve inconsistencies regarding notice requirements.
29. Jurisdiction and Notification Requirements: Jamil Ahmad vs. Additional District Judge, Islamabad (2003 YLR 1894) raised an issue about the jurisdiction of the Rent Controller and the Appellate Court, questioning the validity of proceedings in the absence of an official notification declaring an area as “urban” under the Ordinance. The court concluded that the landlord’s failure to approach the correct forum cannot be offset by the tenant’s failure to object to the jurisdiction, indicating that procedural missteps can be critical.
30. Bona Fide Personal Need in Different Territories: Mushtaq Ahmed Panhwar vs. Mrs. S.B. Agha (1997 MLD 829) refers to the Sindh Rented Premises Ordinance, 1979, and, while not directly applicable to Islamabad, it provides context on how personal bona fide need is established and proven in related jurisdictions.

Conclusions and Takeaways 

(1) From these cases, the takeaways for clients would be the importance of:

• Ensuring clear and written tenancy agreements.
• Understanding the rights and obligations under the tenancy agreement and the Islamabad Rent Restriction Ordinance, 2001.
• Recognizing the landlord’s right to evict a tenant on valid grounds, such as non-payment of rent and personal bona fide need, while also ensuring that tenants’ rights are not unfairly compromised.
• Adhering strictly to the procedures and timelines set forth by the Rent Controller for eviction proceedings.
• Understanding that any disputes regarding rent payments or property ownership should be resolved through proper legal channels with adequate evidence.

(2) From these cases, our clients can draw the understanding that the Islamabad Rent Restriction Ordinance, 2001, serves as the primary legislative framework governing landlord and tenant disputes in Islamabad. Clients must recognize that eviction proceedings are subject to strict procedural and substantive requirements, including the need for notices, the existence of personal bona fide requirements, and the adherence to statutory definitions of tenancy. Additionally, any arrangements or payments outside of the statutory framework, such as “Pagri”, do not exempt landlords from the legal process nor provide tenants with immunity from eviction.

(3) Furthermore ,these cases underscore the need for both landlords and tenants to be well-versed with their rights and obligations under the Islamabad Rent Restriction Ordinance, 2001, and to ensure that all procedures are duly followed. For landlords, establishing a clear and legally recognized ground for eviction is paramount, while for tenants, an understanding of their rights and the legal protections afforded to them is essential for safeguarding their tenancy.

(4) It is also evident from reported cases that the most litigated aspects of landlord and tenant law in Islamabad involve eviction proceedings, particularly relating to the expiry of lease agreements, personal bona fide need of the landlord, and the tenants’ default in payment or violation of lease terms. The Islamabad Rent Restriction Ordinance, 2001, and its amendments are frequently cited, indicating their central role in regulating landlord-tenant relationships in Islamabad. Landlords and tenants alike must be well-versed in these laws to navigate their rights and obligations effectively.

(5) Takeaways for clients involve the imperative to understand the mandatory nature of alternative dispute resolution under Section 16A, the significance of adhering to lease terms, and the importance of compliance with procedural requirements to avoid disputes and potential eviction. The cases underscore the need for clear communication and mutual understanding between landlords and tenants, and the benefits of seeking legal advice to ensure that their interests are protected under the prevailing legal framework. 

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Below is an older version of this article

On paper at least, Pakistan’s Real Estate Landlord and Tenant law should be one of the most straightforward but anyone will know that as far as the law is concerned, nothing is what is seems from the outset. Here is a brief guide to this law for both landlords, tenants and property owners.

The Pakistani Real, Estate Landlord & Tenant Law has a firm basis aimed towards both fair play and justice. While it may seem initially to favor the tenant this simply isn’t the case as you will see further on. In terms of rent restrictions there are 4 main laws which deal with this and who cover the areas of Islamabad Capital Territory, The Punjab, Sindh, Baluchistan and the NWFP or North West Frontier Province.

Landlords and Tenants Are Free to Negotiate Their Own Rents!

Yes, this is true, in the Islamabad Capital Territory at least! Landlords and tenants are entitled by law to agree on the rent between them. Once they have done this they must register this rental agreement with the local controller of rents within 7 days of them signing it. The current law states that rent increases are imposed automatically after every 3 years of tenancy and the increase will be 25% of what the tenant is already paying. This rule only doesn’t apply if the tenant and the landlord have already agreed their own increase and have a written agreement stating this.

There are 5 other areas in Pakistan which are covered by a singular provincial legislation;

• The Punjab
• Cantonment areas
• Sindh
• Baluchistan
• NWFP

In these areas the rent controller has the power, after receiving an application from the tenant or the landlord, to set a fair rent. When it comes to deciding on what is a fair rent, there are several factors which are taken into consideration;

• The current rent of that building or of a similar building in the immediate locality at either that time or during the year previous to the application being made
• The current cost of repairs, construction and taxes
• The buildings rental value as per the Property Tax Assessment Register of the Taxation Department. The assessment list of the Cantonment Board is used for those properties in designated Cantonment areas.

In the Cantonment areas, as well as in NWFP, The Punjab and Baluchistan, should the affixed fair rent exceed the rent that the tenant is already paying as of the date the application was filed, the maximum the rent can increase by is 25%.When a fixed, fair rent is in place in Sindh, there can be no increase in rent for at least 3 years an even then no rent increase can exceed 10% of the current rent the tenant is paying.

If the amount of the rental charge has already been agreed between, and is down in writing, the landlord and the tenant, in the Islamabad Capital Territory and in the Cantonment areas no further increases are allowed if the length of the tenancy is for duration not exceeding 3 years. An exception to this is where additional alterations or improvements have taken place that either the landlord has paid for or the tenant has requested. Any rent increase cannot, however, exceed fixed fair rents that are being paid on comparable rented land or buildings in that location, and it cannot be charged under all the alterations and/or improvements are fully completed.

The Rights of Landlords and Tenants in Pakistan Relating to Contract Duration and Evictions

No tenancy is valid in Islamabad beyond the period of time that a landlord and his tenant have agreed on during the time preceding or following the date on which the tenancy actually began. If there was no fixed period, the tenancy is not valid after 6 months of the tenant receiving, in writing, a termination from the landlord.

There are several reasons why, in NWFP, the Punjab, Islamabad Capital Territory and Baluchistan, tenancies can be ended including;

• The death of the landlord

• If the landlord is now the widow or one of the children of the diseased landlord

• When the landlord has retired

• When the landlord is in salaried employment and is will soon be retiring

• When the landlord has began a period of leave, or is preparing to take leave, that will result in retirement

• Other reasons for a tenancy being ended include;

• The agreed rent not being paid within 15 days of that agreed date

• Should there be no agreed date tenancies can be ended if no rent has been received within 60 days from the last payment that was made

There is a proviso for this in the Punjab and in Baluchistan where by if the landlord makes an application on the aforementioned grounds but the default only amounts to one agreed monthly rent payment. If the tenant, at the first hearing, admits that he is liable for the payment of the rent owing the controller will, as long as he’s satisfied the tenant hasn’t defaulted previously, direct that tenant to pay in full the rent he owes by, a the latest, a date that doesn’t exceed 15 days from that date, and upon the receipt of the rent he’ll make the order rejecting that the tenancy be ended. Should the deposit not be made by the assigned date he will then make the order for the landlord to repossess his property and there will be no more proceedings.

There are certain things that the tenant is not allowed to do without landlords written permission that can also bring about the ending of a tenancy. There is a very long list of these and it includes the following;

• When the tenant has transferred his rights covered in the lease and/ or sublet any portion of the rented land and/or building,

• When the tenant has been using any part of the building and/or the rented land for any purposes other than those that it was leased for,

• When the tenant has infringed any of his tenancy conditions which the rented land or building that the landlord holds

• When the tenant has participated in the kind of acts that will likely cause impairment to either the material value of the rented land or building or its utility,

• When the tenant has taken part in such activities that will cause nuisance to neighbors

• When the building is located anywhere but a hill station and the tenant’s stopped occupying the property for a continuous period of at least 4 months without giving any kind of reasonable cause (this doesn’t apply in Islamabad).

• The rented land or property is reasonably needed by the landlord in order for him to carry out reconstruction or to erect a building as long as the landlord is in possession of the necessary sanctions for the aforementioned construction or reconstruction to go ahead

• The controller will usually afford the tenant a reasonable time span in which to hand the rented land or property back to the landlord and while he may extend this time span at his discretion it will not exceed 4 months from the date the decision was made, or 3 months if in Islamabad

The rules are a bit different when it comes to ending a tenancy in Sindh. The following can all be bone fide reasons for a tenancy being ended;

• The landlord is either a widow or an orphaned minor

• Retired or an employee in a salaried job who will be retiring in the next 6 months

• The landlord is aged 60 or is having his 60^th birthday within the ensuing 6 months

• The landlord can give his tenant/s written notice that he needs to take over the property for his own personal usage and needs them to vacate the premises by the date stated in that notice which cannot be less that 2 months from which date he receives the notice

This provision doesn’t apply however if;

The landlord was already aged 60 or had already retired before he leased out his property or has become an orphan or a widow or if he is residing in another property he owns in any area.

Applications can also be sent to the rent controller to end the tenancy if;

• The tenant fails to pay the rent for the premises he is living or working in within 15 days after the mutually agreed time frame has expired. If, however, there is no agreement in place, the tenant defaults by not paying the rent within 60 days after it was due. However, if this is the sole reason for the landlord making the application for the tenancy to be ended, and at the hearing the tenant admits full liability for non-payment the controller has to then, if totally satisfied that this tenant has never defaulted in this way before and the period of the default doesn’t exceed 6 months, order the tenant to remit the full amount of the rent he owes on of before a date set for this purpose and once this payment is receives the application will be rejected.

• Without the landlords written permission, the tenant has given the land or premises to a third party,

• Used these premises for purposes other than what they leased them for,

• Infringed on the conditions laid out in the tenancy agreement

• The tenant took part in the kind of acts that could very well cause impairment to the utility or material value of the property

• The tenant has been causing a nuisance to neighbors due to his or her activities

• The landlord requires possession of the premises in order to carry out reconstruction work or to erect a new construction on that site and has obtained the necessary sanctions for this work to be carried out from the authorities with the power to sanction. This carries the proviso that should the landlord not demolish that building within 6 months of taking over the possession or have started erecting the new building within 2 years of that stated date the tenant is entitled to regain possession of that property.

• When the tenant has been evicted in order for the landlord to construct a new building he could, before the new one is completed and occupied by somebody else, make an application to the controller for the order that directs him to be given possession of an area of the new build that doesn’t exceed the size he occupied in the old one. The controller will usually grant such an order for the tenant to take over the same sized space or a smaller one after considering the tenants needs as well as the type of this new build and its location. He can also decide on the amount of rent and the date it must be paid on the basis of the current rent on similar properties in the locale

• If the landlord wants, in good faith, the premises to be occupied by himself or to use as occupation for either his wife or any or all of his children.

• The situations differ again when it comes to the Cantonment areas and notices in writing is typically given in the following circumstances;

• When the landlord’s deceased

• When the landlord is either a salaried employee, is a retiree or is due to retire in the next 6 months

Any landlord who is seeking to evict his or her tenant/s must send an application to the controller asking for an order to be made and the controller could, after giving the said tenant/s a reasonable opportunity to object to the appeal make such an order that directs the tenant to hand over possession of the property. The criteria needed to satisfy this includes;

• The tenant hasn’t paid or tendered any rent to the landlord within 15 days from the fixed date or time frame that is stated within the tenancy agreement for the payment of rent

• If no such agreement exists this must be done within 60 days of that date on which the rent was due or an application can be made

If the tenant, without getting the prior, written consent from their landlord has;

• Transferred their rights or sublet the premises or any are thereof
• Used any part of the building for a purpose or purposes other than those for which they leased it

• The tenant has taken part in, or committed, acts that carry the likelihood of materially impairing the appearance, value or utility of that building

• The conduct or acts of the tenant have caused a nuisance to neighboring occupants

• If the building is located in any situation than a hill station, the tenant has left the building and hasn’t been there for a continual period of 4 months without any reasonable cause

• The landlord intends to demolish that building to make way for the construction of a new one on the same site and is already in possession of the necessary sanctions from the Cantonment Board to undertake such construction

The Controller may well allow the tenant a reasonable time frame for handing over the property to the landlord and while he may extend this it will not exceed 3 months. The landlord can also submit an application to the controller asking for an eviction order if he, in good faith, needs the premises for either his own occupation or that of the members of this family.

When a specified length of time has been agreed for a tenancy between a landlord and his tenant/s the landlord cannot use the grounds above for applying for an eviction and it must run its course.

Deposits or Bonds

Security and rental deposits, or bonds, are legal in every area and province of Pakistan.

Legislation

The main legal instrument is the 1973 constitution of 1973 which establishes the relationship that exists between the federation and the other 4 provinces. The legislative powers are thus shared between the federation and these provinces by use of the legislative lists. Within the Constitution we find both the Federal Legislative List and the Concurrent Legislative List. The matters covered by the Concurrent List are are covered by both provincial and federal legislation. Those matters which aren’t included in either list are classed as being within the provinces exclusive domain. No provincial statute, however, can be drafted that conflicts with any federal statute. Specifically, the Concurrent List deals with not only property related matters but other civil claims that are classed as existing within the scope of provincial legislation.

Rent Restrictions

There are currently 4 chief laws that deal with rent restrictions within Pakistan and these are as follows;

1. For the federal capital; The Islamabad Rent Restriction Ordinance 2001
2. For the 3 provinces as named; The Punjab/NWFP/Baluchistan Rent Restriction Ordinance 1959
3. For the province of Sindh; The Sindh Rented Premises Ordinance
4. For the Cantonment areas; The Cantonments Rent Restriction Act 1963 regulates all tenancies within these areas that have been designated as Cantonments by the federal government via a notification published within the official gazette and covers all those areas where members of the Pakistan armed forces have their quarters, where there’s a defense installation, where defense production units are situated or which are areas that are in the vicinity of any of the above and are required for use by the forces

Whilst these provisions are for, in the most part anyway, very similar there are still certain, and crucial, differences.

Evictions for the non-payment of rent

• The duration of the process up until completion; 60 days
• The duration of the trial; up to 60 days
• The duration of the enforcement period; 245 days
• Total days in which a tenant must be evicted by; 365
  

Just how effective is the legal system in Pakistan?

In general, the legal system in relation to matters involving rent is very effective, albeit rather slow. The rights of all parties are strictly enforce whilst the rules are applied and interpreted pretty consistently.

Any rental agreement that is executed on an annual basis, or on a term that exceeds 1 year or which reserves an annual rent must be registered under the Registration Act 1908, section 17. Failure to register these agreements tenders them to be null and void.

A brief overview of the landlord and tenant law in Pakistan as it now stands

There is no new legislation, or amendments to the existing one, that have taken place recently in regards to the landlord and tenant law, nor are any expected on the near future. Neither has there been any major changes in this area relating to de-regulating or re-regulating.

Whilst his law may seem to be on the side of the tenant, and even with the preambles for the various legislature stating that;

“it is expedient in the public interest to restrict the increase of rent of certain premises within (the specified) limits and the eviction of tenants there from,” the courts have long held that these laws aren’t confined to the objects of the preamble, ie; in the restriction of rent increases and tenants being evicted, and in fact are focused on the protection and the regulation of both the tenants and the landlords interests.

Frequently Asked Questions Relating to Pakistan’s Landlord and Tenant Law

Q; Can you tell me what Aks-Shaijra is?

A: Aks-Shaijra is the image of any specific area or land or specific khasra number from a map or plan of any estate or village for the purpose of defining its boundaries

What does the term Fard Malkiat? Fard Malkiat is also known as the Record of Rights/ Jama Bandi/Misal Haquiat/ Register Haqdaran-e-Zameen) and is maintained for the determination/record of the various types of rights pertaining to immovable properties

What is Mutation or Intiqal? Mutation is essentially a document that contains an order made by a revenue officer who must, at least, be an Assistant Collector at grade III, which makes note of any entry in the record of rights that is to be changed, mutated or altered in the revenue record.

What does Tattima Registry mean ? Tattima simply means “supplementary” and thus the Tattima Registry means a supplementary sale deed within a specified area.

What does Khasra mean?A Khasra is merely a piece of land with both specific measurements and (a) specific number.

What is meant by Khasra Garrdwari?

The Kharsa Gardwari is a register that is maintained for the record of possession and/or cultivation.

What is meant by a Survey?

A drawing or or a map that displays the precise legal boundaries of a property, easements, the location/s of improvements, encroachments, rights of way, and of the property’s other physical features.

Is a mutation a title document?

No it isn’t.

What’s the document called that creates title on an immovable property?

The document that creates the title on an immovable property is known as the Register Sale Deed or Registry /Baye-Nama.

What is a Sale or Conveyance Deed?

A sale or conveyance deed is the official document used to transfer the title of a property to the buyer from the seller. This deed helps buyers to ascertain as to whether the property they are buying in on land that belong to any builder, development society or authority.

Q: Where do I get the title deeds/house documents from for my property?

A: Your title deeds or house documents can be easily obtained from the department/office which dealt with the conferring or transferring of the property.

Q: What are the laws that deal with Pakistani real estate?

A: Among the many laws that deal with Pakistani real estate are the;

• Transfer of Property Act, 1882
• Land Revenue Act, 1967
• Stamp Act 1899
• Registration Act 1908

Q: Are there any specific precaution I should be taking before I buy any real estate or property in Pakistan?

A: As with any country you should fully investigate any property you are thinking of buying in Pakistan, particularly when it comes to the title deeds which tell you that the seller actually has the right to sell that property. In this regard, it is usual to do your homework into both the seller and the previous owner/s, if there are any. You need to obtain the original document that is in favor of the person selling it, a fresh ‘fard’, the aks-shajra and the certificate of non-encumbrance or no-objection. Should the vendor be selling property as the owner’s attorney you need to make sure that this power of attorney has been properly registered with the appropriate sub-registrar. Anyone found to be in possession of a fake or forged power of attorney cannot transfer any valid title deeds of any immovable property to another person.

Q: If the property I’m looking at registered in the name of a company should I investigate this further?

A: Before buying any property that is registered in the name of a company you ned to verify that the property isn’t mortgaged and isn’t standing as security for any kind of loan as if it is it cannot be considered to be freehold property. This is done by contacting the Securities & Exchange Commission of Pakistan, in particular the Registrar of Companies. You should also check the memorandum of association to ensure that whoever has been authorized to act on the company’s behalf in regards to selling the land, building etc has been verified. The last thing you shoud do in inspect the original title document/s which the company selling the property will be in possession of.

Can any corporate bodies make use of residential properties by turning them into office space?

It’s illegal in Pakistan to use any residential property for commercial use. Those industries which are service based, however, are entitled to operate to put residential properties to commercial use. However, service-based industries are allowed to operate in a residential area.

Q; Does Pakistani law allow foreigners to buy land or property in the country?

A: Foreigners are indeed allowed to buy Pakistani property once they have completed the legal formalities

Q: Does Pakistan have any inheritance laws?

A: There are inheritance laws in the country but these are very much dependent on religion. For example, Muslims have their own personal laws which cover inheritance, as do the other religions present in Pakistan.

Q: Do you need to register the transfer of all immovable properties in Pakistan?

A: A sales deed must be registered for the transfer of any immovable property valued at Rs 100/- or more.

Q: I’m a Pakistani living overseas, can I buy a property without visiting the country?

A:Pakistanis living overseas are indeed allowed to buy property in the country without coming to the country.

Q: What documents do I need in order to legally have ownership of a house?

A: The documents needed include the official deed, such as a sales deed, that verify the transfer into your ownership, a sales certificate or an allotment letter. .

Q: How do become the owner of a house in Pakistan?

A: There are several ways in which you can become the owner of a Pakistani property. You can buy it from from a private builder or person, you can gain the property by allotment or you can purchase it from one of the public authorities such as any of the following development authorities; MDA, FDA, CDA, LDA etc. Another way is by becoming a member of any of the co-operative housing societies.

Q: What actually is a power of attorney?

A: If a seller authorizes a third party or agent to sell a property on their behalf they are giving them the power of attorney. It doesn’t stop at house sales, property purchases, maintenance, etc either as power of attorney can be given by one person to another for a host of situations such as court appearances and tribunal. The most common is known as the general power of attorney, and this has to be registered, but when the power is handed over to deal with a particular act that pertains to just one transaction it’s called the special power of attorney.

Q: Can a person who holds the power of attorney transfer that property into his or her name?

A: That person who holds the power of attorney cannot transfer any property in their name as they have a fiduciary duty that they will be acting in your best interests and effectively do for you what you would be doing for yourself if you could. Any third party will presume that this person is acting as your representative and deal with them as they would with you.

Q: Can my power of attorney be revoked?

A: Yes it can.

Q: Under what circumstances would any Power of Attorney get canceled?

A: A power of attorney is automatically canceled if the executor dies or if he decides to cancel it.

Q: Does my power of attorney carry on after my death?

A: No, as all power of attorney’s end when you die.

Q: I’m looking at purchasing an apartment that is still being built, what paperwork should I be checking?

A: First off you need to check the approved plans for the building as well as how many floors it will have and make sure that the plans for the floor you are purchasing have been approved. You should also check that the land which the builder is constructing the building on has an agreement in place with the landlord, therefore, check who owns the land. Also have a look at any applicable by laws that exist in that location, thus ensuring that this building isn’t violating any regulations in terms of height, front or side setbacks etc. Also investigate the specs that are in the sales agreement are the same as in the sales brochure to ensure you are buying what you think you are. Should the builder be one of the companies that are part of the Securities and Exchange Commission of Pakistan you will be able to make sure that the company has the authority to sell real estate.

Q: Can I sell an immovable property while it’s still mortgaged?

A: No immovable properties are allowed to be sold while still mortgaged.

Q: Are there any important documents I should check out before purchasing a property?

A: There certainly are. The approved layout and building plans are a must, as are the current ownership documents and make sure that you examine all the deeds, check on all previous loans and encumbrances and ascertain the number of the survey. If it’s applicable you can request that the seller obtains the sanction, permission and no-objection certificates from the various authorities along with bills, tax receipts, accurate measurement of the land etc etc.

Q: What actually is stamp duty? And is it the buyer or the seller that is liable to pay it?

A: Stamp duty’s a tax or fee that is government levied on the transfer of any property and has to be paid on time and in full. Once stamped this paper becomes a legal and official document. It is the buyer who’s liable to pay stamp duty unless any commitments to the contrary are in existence.

Q: How easy is to get an approved building plan/s and is it necessary?

A: Raising a construction before you have had the building plans approved from the correct authority is a violation of those rules laid down by the relevant building control authority can ultimately lead to the construction being demolished, irrespective of how much has been constructed. For all purposes, and not just practicality, approval must be obtained before a single brick is laid.

Q: Who maintains the Pakistan land record?

A: Land records in Pakistan are maintained by the respective district administration and revenue departments who decide both the ownership and the boundaries of all property and land.

Q: I own a share of a property, am I able to sell that property?

A: You are allowed to sell your share of the property but no more and if there are no specific boundaries in place these must be agreed in advance with your other co-owners.

Q: Are sales deeds that are drafted by Nawees/Wasiqa/Arzi Nawees reliable?

A: No they are not. Only a lawyer who possesses the knowledge in all the respective laws can draft a sales deed which deals with the transfer of ownership of a property.

Q: What essential components make up a gift?

A: There are 3 essential components; the offer made by the owner/donor, the acceptance of the gift by the other party and the actual delivery of the gift.

Q: Can you revoke a gift?

A: Most definitely. Gifts can be revoked with the exception of those that have been made in the favor of somebody who falls into a certain category, ie someone with whom no contact can be made.

Q: What distinguishes a gift from those items bequeathed in a will?

A:Gifts can be made at any time and have immediate effect whereas those items in a will only come into effect once the maker of the will has deceased. Another distinguishing feature is how a property owner is entitled to gift his entire estate during his lifetime but then can’t make a will stating that the aforementioned estate goes to another legal heir after his death. He or she is able to make a will covering a third of their holdings in favor of anyone who isn’t a legal heir and if this favors one legal heir the consent/agreement is needed from any other legal heirs.