Lahore: To deal with the complaints of allottees, real estate builders are to be brought under legal jurisdiction through the Real Estate Companies Act 2016, states a news report. The bill will be sent to the parliament for approval.
It is a common practice in the real estate sector that builders and developers are very keen to receive timely payments of the property a buyer booked from them but they hardly ever deliver the project by the promised deadline. To fix this issue, Security and Exchange Commission has proposed this bill.
The bill suggests that the real estate builders be barred from using the funds collected from one project in another one. Per this bill, the builders will be bound to open separate bank accounts for each of their projects.
The bill also proposes that an independent committee operating under Security and Exchange Commission will approve how and when the developer will use the money he has received from his real estate clients.
