PTI govt to establish real estate regulatory body
The federal government has decided to establish a Real Estate Regulatory Authority (RERA) to manage the affairs of real estate with an appellate tribunal to settle the disputes of the concerned sector.
The real estate agents will have to register with the authority for the sale of plots, houses or buildings. For the purpose, the government has finalised the Real Estate Regulation and Development Bill 2019. Real Estate Regulation and Development Act is expected to be implemented later through a presidential ordinance.
According to a document available with The Express Tribune, 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, prior approval from RERA will be mandatory before starting work on any real estate project.
Without approval, no promoter will be able to sell or purchase any plot or publish an advertisement. The developer will have to submit details of his past projects and a present full plan for the future with the authority.
RERA will be authorised to revoke the licence of the promoter in case of any violation. The authority will look after the rights of the allottees and real estate agents.
RERA will promote investment in the sector and act as a consultant on development projects for the government. A central advisory council will also be formed for the promotion of the real estate sector and protection of rights of consumers.
It will have representation from the ministries of interior and finance, National Housing Authority, Naya Pakistan Housing Authority including an additional secretary-level officer from the ministry of law and justice.
The matters within the purview of the authority or appellate tribunal will not remain fall under the ambit of civil courts. The authority will be headed by a chairman who will be appointed by the government. It is expected that the Real Estate Regulation and Development Bill 2019 will be introduced through a presidential ordinance.