Gift Deed (Hiba) vs Sale vs Will in Pakistan: Which to Use

By Bilal Saeed, Advocate (Punjab Bar Council), Lahore High Court and District Courts Lahore. Reviewed and last updated 28 June 2026.

This article is general information, not legal advice.

Choosing how to transfer property in Pakistan depends on whether you want to gift it during your lifetime, sell it for a price, or distribute it after death. A gift deed (hiba) requires three elements: the donor's declaration, the donee's acceptance, and delivery of possession; once complete, it is final. A sale deed requires a price and registration; it transfers ownership immediately. A will takes effect only after death and is limited to one-third of your estate under Islamic law, with the remaining two-thirds passing automatically to heirs. This guide compares all three, explains when to use each, and covers the legal requirements.

Key Facts at a Glance

Key Takeaways

• Hiba is a lifetime gift that becomes final once you deliver possession; a sale transfers ownership immediately for a price; a will takes effect only after you die and covers only up to one-third of your estate.
• Hiba requires three elements: your declaration, the recipient's acceptance, and your actual or symbolic delivery of the property.
• A will cannot dispose of more than one-third of your estate; the rest passes by Islamic law to your heirs.
• Hiba is irreversible; once all three requirements are met, you cannot take the property back.
• Choose hiba to gift to family during your lifetime; choose sale for a commercial transaction; choose a will to decide who receives your property after death.

What is a Gift Deed (Hiba)?

A gift deed is a legal document that transfers property from a donor to a donee without any payment or consideration. It is based on the Islamic concept of hiba, which is governed by Muslim personal law and the Transfer of Property Act 1882.

A gift is final once the three mandatory elements are present: the donor declares the gift, the donee accepts it, and the donor delivers possession. The person making the gift cannot revoke it once these steps are complete. Unlike a sale, there is no purchase price involved.

Hiba is common within families. A parent might gift property to a son, a husband to a wife, or a grandparent to a grandchild. The property passes during the donor's lifetime, avoiding disputes that might arise if ownership is unclear in a will.

The Three Requisites of Hiba

Hiba requires three mandatory elements under Islamic law. All three must be satisfied for a gift to be valid and irreversible.

1. Declaration (Ijab)

The donor must clearly express the intention to gift the property. The declaration can be oral or in writing. A written gift deed is the best form of evidence and is strongly recommended, especially for immovable property such as land or a house.

The donor's words must show genuine intent to transfer ownership at no cost. Vague statements do not count; the intention must be clear and unambiguous.

2. Acceptance (Qabul)

The donee must accept the gift. Acceptance can be express (the donee states acceptance directly) or implied (the donee takes possession or uses the property without objection). In many cases, acceptance is presumed unless the donee explicitly rejects the gift.

Acceptance can take place at the time the gift is offered or later, as long as the donor's declaration remains open. Once the donor closes the offer, delayed acceptance may not be valid.

3. Delivery of Possession (Qabd)

The donor must deliver possession of the property to the donee. This is the most critical element.

For immovable property (land, houses, flats), delivery of possession can be symbolic. Handing over the title deed, keys, or documents in the presence of witnesses counts as delivery. The donee does not necessarily have to live on the property immediately.

For movable property (vehicles, gold, furniture), delivery is typically actual physical handover.

The critical point: Once all three elements are complete (declaration, acceptance, and delivery of possession), the gift cannot be revoked. The property belongs to the donee.

Comparison: Hiba vs Sale vs Will

Key Difference: Hiba is No Price, Sale is a Price

The fundamental difference between hiba and sale is consideration.

A hiba is a transfer of property with no payment. The donee receives the property as a gift. No money or equivalent value changes hands. This is the defining feature of a gift.

A sale is a transfer of property for a price. The buyer pays money; the seller receives the price. The amount is a matter of negotiation between the parties.

Tax and stamp implications are set by the Stamp Authority and the Federal Board of Revenue. Hiba typically attracts lower stamp duty than a sale. However, in some cases, gifts to non-relations may be treated differently for tax purposes. The exact rate is determined by the authority and subject to change. Check the sub-registrar's office or consult a property lawyer to confirm current rates before you proceed.

Gift vs Will: The One-Third Limit

A will takes effect only after you die. A hiba takes effect during your lifetime.

Under Islamic law, a Muslim testator can dispose of at most one-third of the estate via will. The remaining two-thirds pass automatically to your legal heirs (spouse, children, parents) according to fixed Islamic shares (Sharia).

If you want to ensure a specific person receives property and you want it to happen during your lifetime, hiba is more certain. The gift is irreversible once delivered. There is no one-third limit.

If you want to defer the decision until after your death, a will allows you to specify the distribution within the one-third limit. However, a will is revocable until your death, so you can change it.

Important rule: If you make a bequest in your will to a legal heir (for example, leaving your entire estate to your eldest son), the other heirs must consent for the bequest to take effect. This consent rule does not apply to hiba gifts made during your lifetime.

When to Use Hiba

Use a gift deed (hiba) when:

• You want to transfer property to a family member or spouse during your lifetime.
• You want the transfer to be irreversible and final.
• You have no payment or consideration involved.
• You want to avoid disputes about ownership after your death by transferring during your lifetime.
• You want to skip the inheritance process and give the property directly.

When to Use Sale

Use a sale deed when:

• You are selling property to a buyer for a price.
• The buyer is paying money, and you are receiving the sale price.
• You want a clear registered record of the transaction.
• It is a commercial transaction, not a family gift.

A registered sale deed is the standard document for property transactions in Pakistan. It is governed by the Transfer of Property Act 1882 and must be registered with the sub-registrar.

When to Use a Will

Use a will when:

• You want to decide who gets your property after you die.
• You want to dispose of up to one-third of your estate to a non-heir or to specify shares beyond what Islamic law prescribes.
• You are not ready to transfer the property during your lifetime.
• You want to retain control of the property until your death.

A will is revocable until you die, so you can change it if circumstances change. However, remember the one-third limit. If your estate is worth 3 million rupees, you can dispose of at most 1 million rupees via will. The remaining 2 million passes to your heirs by law.

For more on inheritance and the rights of heirs, see our guide on inheritance law in Pakistan.

Registration and Stamp Duty

Hiba (Gift)

Registration is not mandatory for a hiba to be valid, but it is highly recommended, especially for immovable property. A registered gift deed provides clear evidence of the transaction and prevents disputes later.

Stamp duty on a hiba is set by the Stamp Authority and is typically lower than on a sale. The exact rate depends on the property value and the relationship between the donor and donee (e.g., gift to a spouse may have a lower rate than gift to a non-relation). Check the current rate with the sub-registrar or a property lawyer before you register.

Sale

Registration of a sale deed is mandatory. You must register the sale deed with the sub-registrar within a specified time after the sale is complete. The Registration Act 1908 governs this process.

Stamp duty on a sale is set by the Stamp Authority and is typically higher than on a gift. Again, the exact rate is set by the authority and subject to change. You can check current rates on the revenue office's website or through a property lawyer.

Will

Registration of a will is recommended but not mandatory. An unregistered will is still valid, but a registered will provides clear evidence and helps the executor during probate. Stamp duty on a will is typically low or nil, depending on the Stamp Authority's rules.

For detailed guidance on how to transfer property in Punjab, see our property transfer guide.

Example (Illustrative)

Fatima, a widow in Lahore, owns a house worth 5 million rupees. She has two adult children, Hassan and Aisha. Fatima is 65 and in good health.

Option 1: Hiba to Hassan Fatima decides to gift the house to Hassan now. She writes a gift deed declaring her intent to gift the house. Hassan accepts the gift (qabul). Fatima hands over the title deed and keys to Hassan in the presence of witnesses (qabd, delivery of possession). All three elements are complete. Fatima registers the gift deed at the sub-registrar's office, paying a lower stamp duty rate. The house now belongs to Hassan. Fatima cannot revoke the gift.

Later, Aisha inherits other assets from Fatima's estate according to Islamic law. Hassan's gift from the hiba is separate.

Option 2: Will Alternatively, Fatima decides to keep the house and make a will. She writes a will stating that Hassan gets the house. The will is revocable; Fatima can change it at any time before her death. Upon Fatima's death, Hassan receives the house, but Aisha and any surviving spouse also have inheritance rights. If Fatima had left the entire house to Hassan via will, Aisha would have to consent (as Hassan is receiving more than his Islamic share).

Option 3: Sale If Hassan wants to buy the house at fair market value and Fatima agrees to sell, they execute a registered sale deed. Hassan pays 5 million rupees; Fatima receives the price. The sale is registered, and Hassan becomes the owner. This is a commercial transaction, not a gift.

The choice depends on Fatima's intent: if she wants to gift now and avoid disputes, hiba is best. If she wants to keep the house and decide after death, a will works. If Hassan is buying at market price, a sale deed is the right document.

Frequently Asked Questions

What is the difference between a gift deed and a will?

A gift deed (hiba) transfers property during your lifetime and is irreversible once all three elements are complete. A will takes effect only after your death and is revocable until you die. A will is also limited to one-third of your estate.

Can I revoke a gift after I have made it?

Once the three requisites of hiba are satisfied (declaration, acceptance, and delivery of possession), the gift cannot be revoked. The property belongs to the donee. This is the defining feature of hiba: it is final and irreversible.

Do I need to register a gift deed?

Registration is not mandatory for a gift deed to be valid, but it is highly recommended, especially for immovable property. A registered gift deed provides clear evidence and helps avoid disputes.

What is the stamp duty on a gift deed?

Stamp duty is set by the Stamp Authority and is typically lower than on a sale deed. The exact rate depends on the property value and the donor-donee relationship. Check the current rate with the sub-registrar or a property lawyer.

Can I gift property to someone who is not a family member?

Yes, you can gift property to anyone. There is no restriction on the donee's relationship to the donor under hiba law. However, tax treatment may differ for gifts to non-relations; consult the Federal Board of Revenue for current guidance.

What is the one-third limit for a will?

A Muslim testator can dispose of at most one-third of the estate via will. The remaining two-thirds pass automatically to the legal heirs (spouse, children, parents) according to Islamic law. This is a fixed limit.

If I make a will leaving property to my son, do the other heirs have to agree?

Yes. If you bequeath property to a legal heir (such as your son) via will, the other heirs generally must consent. This consent rule does not apply to gifts made during your lifetime via hiba.

Which method should I use: hiba, sale, or will?

Choose hiba if you want to gift property to a family member during your lifetime and ensure the transfer is irreversible. Choose sale if you are selling to a buyer for a price. Choose a will if you want to decide distribution after your death within the one-third limit.

Speak to a Property Lawyer in Lahore

Choosing between a hiba, a sale, and a will depends on your circumstances, your intent, and the people involved. Saeed Law Firm has practised in Lahore since 1975 and can guide you through the legal requirements of each method. We offer a free initial consultation to discuss your property transfer options.

Contact us or visit our property lawyer in Lahore page.

Saeed Law Firm, Y Block Main Market, Sector Y, DHA Phase 3, Lahore 54793. Phone: +92-319-4959420.