Islamabad: The federal government has decided to set up a Real Estate Regulatory Authority (RERA) to manage the affairs of the real estate sector, a news source reported. As per officials, RERA will include an appellate tribunal for settling property disputes, and will be headed by a government-appointed chairperson.
According to details, for selling plots, houses, and other types of properties, the real estate agents will have to register with RERA. To facilitate the authority’s establishment, the executive recently approved the Real Estate Regulation & Development Bill 2019; which it seeks to implement via a presidential ordinance.
The government plans to use the bill as a tool for the management and promotion of the real estate sector in the country. The bill will make it compulsory for developers to have RERA’s approval before initiating work on any real estate project. Without the approval, no developer or marketer will be allowed to sell property or publish an advertisement pertaining to the project.
When seeking RERA’s approval, the developers will submit details of their past projects, along with the full plan for the prospective project to the regulatory body.
As per reports, RERA will be authorised to:
Revoke the license of a developer/promoter in case of violations
Protect the rights of the real estate agents and property allottees
Promote investments in the property sector
Act as a consultant on government-sponsored development schemes
Moreover, the government will also establish a central advisory council for property sector’s development and protection of consumer rights. The council will consist of representatives from the ministries of interior and finance, the Naya Pakistan Housing Authority (NPHA), the National Housing Authority (NHA). It will also include an additional secretary-level officer from the Ministry of Law & Justice as its member.
Following the authority’s establishment, the civil courts will not handle the real estate matters falling under the scope of RERA or the appellate tribunal.
