Government to Establish Real Estate Regulatory Authority in Pakistan
The government of Pakistan has reportedly decided to establish a regulatory body for effective management and exclusive oversight of the real estate sector in the country. According to a report published by a local English daily, the federal authorities have finalized Real Estate Regulation and Development Bill 2019, under which the Real Estate Regulatory Authority (RERA) will be formed.
As per the news report, the RERA will manage matters related to the real estate sector with an appellate tribunal. In addition to regulation and development, the authority will also promote investment in Pakistan property market, protect consumer rights and act as a consultant for the federal government on development projects.
The move comes after years of demands for the establishment of a regulatory body. In fact, most real estate experts believed it to be the next step in Pakistan’s real estate evolution.
Before we discuss what we know about the expected Real Estate Regulatory Authority rules and laws, so far, let’s take a look at the reasons why developers and marketers have been calling for the creation of such authority for so long.
WHY DOES PAKISTAN NEED A REAL ESTATE REGULATORY AUTHORITY?
The real estate sector in Pakistan is facing a number of serious issues, almost all of which can be resolved or at least addressed by the establishment of the Real Estate Regulatory Authority.
For instance, most property-related conflicts in Pakistan take years to get resolved, sometimes even spanning over decades. These legal disputes freeze people’s capital, pushes away potential investors, destabilize the market and even lower the public’s confidence in the real estate sector.
Moreover, an exclusive body was needed to regulate local development authorities and resolve complaints registered against them. The Real Estate Regulatory Authority was also needed to resolve any jurisdiction-related conflicts between local bodies by maintaining consistent policies.
One of the biggest benefits of the Real Estate Regulatory Authority in Pakistan is that it will protect the rights of both the buyer and the broker. Also, development-related disputes would be addressed in a professional and timely manner, saving people from losing any money and drawing more investors.
“If you talk about legal issues related to real estate, there is no regulatory authority here. A regulatory authority should be created,” EMPG CEO Imran Ali Khan explained during a recent interview, emphasizing the need for the creation of Real Estate Regulatory Authority in Pakistan.
WHAT WE KNOW ABOUT THE NEW REAL ESTATE REGULATORY AUTHORITY
So far, here’s what we know about the Real Estate Regulatory Authority and how it will reportedly affect the real sector in Pakistan.
- According to the report, the federal government will appoint the chairman of the regulatory body.
- Registration with the RERA will be mandatory for real estate agents for selling any type of property in Pakistan. This includes selling plots, houses and buildings as well.
- It will be mandatory for developers to seek approval from the RERA before starting any sort of work on a development project.
- To get approval from the regulatory body, developers will be required to submit all details pertaining to their current and past real estate projects along with any future plans.
- Promoters will need approval from the RERA to promote and advertise any type of real estate projects in Pakistan.
- In case of a violation, the regulatory body will have the power to cancel the license of any promoter/marketer.
- The Real Estate Regulatory Authority will also protect the rights of both real estate agents and the individuals whom the property is allotted to.
- Civil Courts will not take on the cases related to real estate disputes that fall within the purview of the RERA or appellate tribunal.
The federal authorities will also reportedly form a Central Advisory Council, which will have representation from the National Housing Authority and Naya Pakistan Housing Authority along with the Ministry of Interior and the Ministry of Finance. The council will also include an additional officer from the Ministry of Law and Justice.
Please note that we will continue to update the blog with the latest news about the establishment of the RERA as more information is released. If you have any queries regarding real estate investment in Pakistan, head over to Blog, the leading property blog in Pakistan.
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