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RENT LAW IN PAKISTAN

Pakistan Rent Law

Pakistan’s Landlord & Tenant law based upon justice and fair play. It appears to lean towards the tenant, but in reality, does not do so.There are four main laws dealing with rent restriction, which cover the following areas of Pakistan.

  • Islamabad Capital Territory
  • Punjab
  • Baluchistan
  • KpK
  • Sindh
  • Azad Kashmir
  • Fata
  • Gilit Balistan
  • other Cantonment areas
  Can landlord and tenant freely agree rents in Pakistan?

In Islamabad Capital Territory rents will be freely in agreement between property owner and tenant. The rental agreement should be registered with the Rent Controller inside per week of linguistic communication the agreement. The rent of a building is mechanically magnified at the top of each 3 years of the abidance by twenty fifth of the rent already being paid by the tenant, unless the owner ANd tenant conform to increase the rent by an agreement in writing.

In the 5 different areas of Islamic Republic of Pakistan coated by distinctive provincial legislation, the Rent Controller is sceptered to mend a good rent, on application by the tenant or landowner.

These other areas are:
  1. Punjab,
  2. Kpk,
  3. Baluchistan,
  4. Azad Kashmir,
  5. Gilit Balistan,
  6. Fata,
  7. Sindh ,
  8. Other Cantonment areas.

The following factors are considered in deciding on a fair rent:

  • The rent of an equivalent building or similar accommodation within the neck of the woods at the time, and through the twelve months before the application;
  • The rise in the cost of construction, repairing charges, and taxes;
  • The rental value of the building in the Property Tax Assessment Register of the Taxation Department (or the assessment list of the Cantonment Board) in the Cantonment areas.

In the Cantonment areas, and in Punjab/Kpk/Baluchistan/sindh/kashmir, if the fair rent exceeds the rent being paid by the tenant on the date of filing the application, the maximum rent increase is 25%.

In Sindh, where a fair rent has been fixed, no increase may be affected for three years. In any event, the increase in rent may not exceed 10% per annum on the existing rent.

In national capital Capital Territory and also the encampment areas, if the rent has been determined by agreement between the owner and tenant, no additional increase is permissible throughout the abidance if it's but 3 years, except wherever some addition alteration or improvement has been applied at the landlord’s expense and at the request of the tenant. The rent therefore magnified might not exceed the truthful rent owed for the same building or rented land within the same neck of the woods, and isn't indictable till the development or alteration has been completed.

What rights do landlords and tenants have in Pakistan, especially as to duration of contract, and eviction?

In Islamabad no occupancy shall be valid on the far side such amount because the landholder and tenant could fix, by mutual agreement, before or once the commencement of the occupancy. If no amount is fastened, the occupancy shall not be valid once six months from the date of receipt by the tenant from the owner of a notice in writing terminating the occupancy.

In Islamabad Capital Territory and the Punjab, Kpk and Baluchistan the tenancy may be brought to an end:

  • Where the landlord has died
  • Or may be a salaried worker and has retired or is thanks to retire or has proceeded or is thanks to proceed inactive preceding to retirement inside a amount of six months or the widow or minor of the deceased landholder, because the case could also be.
A tenancy may also be brought to an end in these areas:

Where the tenant has not paid rent within fifteen days of the time fixed in the contract, or in the absence of any agreement in the contract, within sixty days from the period for which rent is payabl

Provided that wherever the applying created by the owner in geographic area and Baluchistan on the higher than ground involving default of 1 month solely and also the tenant on the primary date of hearing admits his liability to pay the rent due from him the Controller shall, if he's happy that the tenant has not created any neglect any previous occasion, direct the tenant to deposit all the rent due from him on or before a date not olympian fifteen days to be mounted for the aim, Associate in Nursingd upon such deposit being created he shall build an order rejecting the applying. If such deposit isn't created he shall build Associate in Nursing order that the owner be place into possession of the property while not taking any longer proceedings within the case. Where the tenant has without the written consent of the landlord:
  • transferred his right under the lease or sublet the entire building or rented land or any portion thereof; or
  • used the building or rented land for purpose other than that for which it was leased or has infringed any conditions of the tenure on which the building or rented land is held by the landlord; or
  • The tenant has committed such acts as are likely to impair materially the value or utility of the building or rented land; or
  • The tenant indulged in activities as are causing nuisance to the neighbours; or
  • Where the building is situated in a place other than a hill station, the tenant has ceased to occupy the building for a continues period of four months without reasonable cause. (not applicable in Islamabad).
  • The building or rented land is reasonably and in good faith required by the landlord for the re-construction or erection of a building or the landlord has obtained the necessary sanction for the said re-construction or erection from the authority;
The controller may give the tenant reasonable time to put the landlord in possession of the building or rented land, and may extend such time, but not to exceed four months (three months in Islamabad Capital Territory) in the aggregate.

In Sindh, slightly different rules apply. Here the tenancy may be brought to an end:

  • If the landlord is a widow or a minor whose both parents are dead
  • or a salaried employee due to retire within the next six months, or has retired, or is a person who is due to attain the age of sixty years within the next six months or has attained 60
He may inform the tenant in writing that he or she needs the building for personal use and require him to deliver vacant possession of the building within such time as may be specified in the notice, not being earlier than two months from the receipt thereof;

This provision will not apply where:

  • the landlord has rented out the building after he has retired or has attained the age of sixty years or, as the case may be, has become a widow or orphan, or
  • where he is in occupation of a building owned by him in any locality.
A tenancy may be also brought to an end, by application to the Controller, if:
  1. the tenant has did not pay rent in respect of the premises in his possession at intervals fifteen days once the ending of the reciprocally united amount, or within the absence of such agreement, at intervals sixty days once the rent has become due (if the applying created by the owner is on the only ground mentioned during this clause and therefore the tenant on the primary day of hearing admits his liability to pay the rent claimed from him, the Controller should, if he's happy that the tenant has not created such fail any previous occasion and therefore the DE fault isn't prodigious six months, direct the tenant to pay all the rent claimed from him on or before the date to be fastened for the aim and upon such payment, he shall reject the application)
  2. the tenant has, without the written consent of the landlord:
    • handed over the possession of the premises to some other person;
    • used the premises for the purpose other than that for which it was let out;
    • infringed the conditions on which the premises was let out;
  3. the tenant has committed such acts are likely to impair the material value or utility of the premises;
  4. the tenant has indulged in such activities as are causing nuisance to the neighbours;
  5. the premises is needed by landholder|the owner} for reconstruction or erection of a brand new building at the positioning and landlord has obtained necessary sanction for such reconstruction or erection from the authority competent below any law for the nonce good to present such sanction (provided that wherever the owner fails to demolish the building among six months of the seizing possession of the premises or, because the case could also be, begin the erection of the new building among 2 years of the seizing the possession of the premises, the tenant are going to be entitled to be restore into possession).
  6. where the owner constructs the building as said the tenant UN agency was evicted from the recent building could, before the completion of recent building and its occupation by another person, apply to the Controller for AN order guiding that he be place in possession of such space within the new building as doesn't exceed {the space|the world|the realm} of the recent building of that he was in occupation and also the Controller shall build AN order consequently in respect of the realm applied for or such smaller area, as considering the situation and sort of the new building and also the desires of the tenant, he take for simply and on payment of rent to be determined by him on the idea of rent of comparable accommodation within the vicinity.
  7. the landlord requires the premises in good faith for his own occupation or use or for occupation or use for his spouse or any of his children.
  In Cantonment areas the situation is again slightly different. Here a notice in writing may generally be given:
  • Where the landlord has died,
  • or is a salaried employee and has retired or is due to retire within a period of six months.
A landlord who seeks to evict his tenant shall apply to the Controller for an order in that behalf, and the Controller may, after giving the tenant a reasonable opportunity of showing cause against the application, make an order directing the tenant to put the landlord in possession, if he is satisfied that:
  1. the tenant has not paid or tendered the rent to the landlord within fifteen days of the expiry of the time fixed in the agreement of tenancy for payment of rent, or in the absence of such agreement, within sixty days following the period for which the rent in due; or
  2. the tenant has, without the written consent of the landlord,
    1. transferred his right under the lease or sublet the building or any portion thereof, or
    2. used the building for a purpose other than that for which it was leased; or
  3. The tenant has committed such acts as are likely to materially impair the value, look or utility of the building; or
  4. The acts and conduct of the tenant have been a nuisance to the occupiers of buildings in the neighbourhood; or
  5. Where the building is situated in a place other than a hill station, the tenant has ceased to occupy the building for a continuous period of four months without reasonable cause; or
  6. The landlord intends to demolish the building for constructing a new building on the same site and as already obtained the necessary sanction for such construction from the Cantonment Board:
The Controller may give the tenant a reasonable time for putting the landlord in possession of the building, and may extend such time so as not to exceed three months in the aggregate.

A landlord may also apply to the Controller for an eviction order of a tenant if he requires the premises in good faith for his own occupation or for his family members.

Where the tenancy is for a specified period agreed between the landlord and the tenant, the landlord shall not be entitled to apply before the expiry of such period for eviction of tenant to the Controller on the above grounds.

Deposits

Any amount of security deposit and rental deposit is legal, in all provinces and areas of Pakistan.

Legislation

The chief official document is that the Constitution of 1973. It establishes the connection between the Federation and therefore the four provinces. Legislative powers area unit distributed between the Federation and provinces by means that of legislative lists. The Constitution contains the Federal Legislative List likewise because the cooccurring Legislative List. Matters enclosed within the cooccurring List area unit lined by Federal likewise and Provincial Legislation. Matters not enclosed in either of the 2 lists area unit among the exclusive domain of the provinces. However, no Provincial Statute is also written that is in conflict with a Federal Statute. The cooccurring List specifies property connected matters and different civil claims as being among the legislative scope of provincial assembly.

There are four main laws dealing with rent restrictions. They are as follows:

  1. The Islamabad Rent Restriction Ordinance, 2001 (for the Federal Capital).
  2. The Punjab/Kpk/Baluchistan Rent Restriction Ordinance, 1959 (regulates tenancies in these three provinces)
  3. Sindh Rented Premises Ordinance, 1979 (regulates tenancies in this province)
  4. Cantonments Rent Restriction Act, 1963 (regulates tenancies in these areas, which are declared as cantonment areas by the Federal Government through notification in the official gazette and in which any part of the armed forces of Pakistan is quartered or where Defence installation or Defence production units are located or which, being in the vicinity of any such place or places, are required for the service of such forces)

Although the provisions of all these laws are for the most part similar, there are certain crucial differences. The legal system generally, and in relation to rent matters particularly, is very effective, if a little slow. The rights of the parties are strictly enforced and the rules are fairly consistently interpreted and applied.

Any rent agreement executed on yearly basis or for any term exceeding one year or reserving a yearly rent are registerable under section 17 of the Registration Act 1908. Failure to register invalidates the agreement.

Brief history: Recent changes in Pakistani landlord and tenant law

No new legislation, or amendment to the existing legislation, is anticipated in the near future nor has there been any recent radical de-regulation or re-regulation in this area.

Although the law could seem pro-tenant, and so though the preambles to those varied legislations state:it is expedient within the public interest prohibit to limit the rise of rent of bound premises inside (the specified) limits and also the eviction of tenants there from in reality the courts have control that these laws don't seem to be solely confined to their preamble object (to restrict increase of rent and also the eviction of tenants), however also are geared toward protective and control the interests of each tenants and landlords.



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