You take a flat on rent in Lahore. The owner hands you a one page paper and says, sign here. You sign without reading it. A year later he wants you out, and he points to a line you never noticed. That is how most tenancy fights in Pakistan start.
A rent agreement is the written contract between the owner and the tenant. The main law behind it is the Transfer of Property Act 1882. Section 105 says a lease is the transfer of the right to enjoy a property for a certain time, in return for a price. The owner keeps the ownership. You only get the right to live there on the agreed terms.
Do you need it in writing?
In Punjab, yes. Section 5 of the Punjab Rented Premises Act 2009 says a landlord shall not let out a premises except by a tenancy agreement. The agreement is presented before the Rent Registrar of the area. The Registrar enters the details in a register, seals the paper and returns the original to the landlord.
In other provinces a verbal tenancy is legally valid, but it is very hard to prove. If a dispute comes, the person claiming the terms has to prove them. A written agreement ends that problem.
What must the agreement say?
Section 6 of the Punjab Act lists what a tenancy agreement should contain:
- The full names and particulars of the landlord and the tenant, with CNIC numbers.
- A clear description of the premises, with the address and what is included.
- The period of the tenancy, with the start and end dates.
- The rent amount, the rate of increase, the due date and the mode of payment.
- The landlord's bank account details, if rent is paid through a bank.
- The purpose for which the premises is let out, such as residence or a shop.
- The amount of advance rent, security deposit or pagri, if any. Pagri is a lump sum some owners take at the start of a tenancy, on top of the rent and the deposit.
What if the agreement is silent on something?
The Act fills some gaps. Section 7 says that if no due date is written, the rent is due by the tenth day of the following month. If no mode is written, you pay by money order or by deposit in the owner's bank account.
Section 12 says the landlord cannot cut off electricity, gas or water without a proper reason, and cannot enter the property without giving you reasonable notice. Section 13 says you must keep the premises in the condition it was let out, apart from normal wear and tear, and you cannot make structural changes without written permission.
When must the agreement be registered?
Not every agreement. Under section 17 of the Registration Act 1908, a lease from year to year, or for a term exceeding one year, must be registered with the sub registrar. Section 107 of the Transfer of Property Act 1882 says the same thing in different words: a lease of more than one year can only be made by a registered document.
This is why the eleven month agreement is so common in Pakistan. Keep the term under one year and you get a fully enforceable document without registration. Then you renew it every year. If a long lease is not registered, the courts treat it as a tenancy from month to month, and the term you thought you had may not be protected.
What about the stamp paper?
Every rent agreement should be written on judicial stamp paper. The duty is set by the Stamp Act 1899 and the rate varies by province. In Punjab, the duty on a lease under twenty years is 3.25 percent of the average annual rent. An unstamped agreement cannot be used as evidence in court. The rates and the payment steps are in our guide on stamp duty on rent agreements in Pakistan.
Do you have to register the tenant with the police?
In Punjab, yes. Under the Punjab Information of Temporary Residents Act 2015, the owner, the tenant and the property dealer must register the tenant's information with the police. You can do it online on the official Tenant Registration System of Punjab Police, or at the nearest police station with the CNICs of both sides, photographs and a copy of the rent agreement.
How much can the rent go up?
Tenancy is a provincial subject, so the answer depends on where the property is.
Punjab does not fix a statutory cap. The increase is whatever both sides agree and write in the agreement. In practice, an increase of around 10 percent a year is the common market practice, but nothing in the law forces that figure.
Sindh has a cap. Section 6 of the Sindh Rented Premises Ordinance 1979 says an increase shall not exceed 10 percent per annum on the existing rent. Once a fair rent is fixed for a premises, it cannot be revisited for three years.
In Islamabad, the Rent Restriction Ordinance 2001, as amended in 2021, allows an automatic increase of 10 percent every year, unless both sides agree otherwise in writing.
What about the security deposit?
The deposit is a guarantee against damage. It is not the last month's rent. When you vacate, the owner should return it within a reasonable time, minus genuine deductions for unpaid rent or damage beyond normal wear and tear. In Punjab, agreements commonly say 30 days, and the owner should give you an itemised list of any deductions. If the deposit is kept without reason, you can apply to the Rent Tribunal for its return.
Can the landlord evict you without a court order?
No. In Punjab, only the Rent Tribunal can order eviction, and only on the grounds in section 15 of the Act: the term has expired, rent is unpaid for 30 days after it became due, the tenant broke a term of the agreement, used the premises for a different purpose, or sublet without written consent. Changing the locks or cutting the utilities is not allowed. Forcing a person out can be an offence under the Illegal Dispossession Act 2005.
If the landlord refuses to accept the rent, section 20 of the Punjab Act lets you deposit it in the Rent Tribunal instead. That way you cannot be accused of non payment. The Tribunal has to decide an application within four months, and either side can appeal to the District Judge within 30 days.
Steps to make a rent agreement in Pakistan
- Collect the property details and the CNICs of both sides.
- Buy the stamp paper from the official e stamping portal of your province.
- Write the agreement with the items listed above, in clear words.
- Both sides sign in front of two witnesses.
- In Punjab, present the agreement before the Rent Registrar.
- If the term is more than one year, register it at the sub registrar office.
- Register the tenant with the police through the Tenant Registration System.
Before you sign anything, it helps to know who really owns the place. Our guide on how to check a property before buying in Pakistan explains the records you can ask for. If the property is in Karachi, see our walkthrough on checking a property lease in Karachi.
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