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Government to Establish Real Estate Regulatory Authority

04/09/2019

Government to Establish Real Estate Regulatory Authority

Federal Government has decided to establish a Real Estate Regulatory Authority (RERA) to manage Pakistan real estate sector and to deal with the related issues.

The main purpose of this authority will be to settle the disputes of the concerned sector with an appellate tribunal. The real estate agents will have to register with the said authority for the sale of plots, houses and other property units. To make this plan successful, the government has already finalized the Real Estate Regulation and Development Bill 2019. Real Estate Regulation and Development Act is expected to be implemented later through a presidential ordinance.

Government will appoint a chairman to lead this authority and the authority will regulate the real estate sector to facilitate the sale of an apartment, plot, home or any other property unit. The disputed matters will be handled by the appellate tribunal and will not be handled by the civil courts.

As per the document, the Real Estate Regulation and Development Bill 2019 has been finalized, which will serve as a tool for effective management and promotion of real estate sector and according to which, RERA will be formed.

According to the bill, not just the real estate agents will have to register themselves with RERA but a prior approval will also be mandatory for the developers to start any project. The developer will have to submit the details of the previous projects along with a plan for the future of the project with the authority. And without approval, no promoter will be able to advertise the project and sell or purchase the plot or property unit.

In case of violation of any term, the authority will be authorised to revoke the license of promoter. The authority is being developed to protect and promote the rights of real estate agents. A central advisory council will also be formed for the promotion of the real estate sector and to protect the rights of the consumers.

It will have representatives from the ministries of interior, commerce, finance, law, Pakistan Housing Authority, and the National Housing Authority. And to further invite the potential investors in this sector, the authority will act as a consultant for the government for various development projects.

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