Govt Decided to Establish RERA Pakistan ACT 2020

GOVT of Pakistan to establish the RERA Pakistan Real Estate Regulatory Authority (PASSED BY THE NATIONAL ASSEMBLY) RERA ACT 2020 for regulation and promotion of the real estate sector and for maters connected therewith WHEREAS it is expedient to establish the Real Estate Regulatory Authority (RERA) For regulation and promotion of the real estate sector and to protect the interest of buyer in the real estate sector by ensuring that the sale and purchase of plot, apartment or building, as the case may be, or sale of real estate project, to the buyer by a developer or owner ho!ding title by himself or through a company or an agent is by an efficient and transparent manner and to regulate mega Projects in the real estate sector by any developer and provide a mechanism for speedy dispute redressed by establishing an Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority (RERA) and the recommendations of the inquiry officer and For matters connected therewith or incidental thereto Follows:

This Act may be called the Islamabad Real Estate (Regulation and Development) Act, 2020.

GOVT to establish the Real Estate Regulatory Authority (Passed by national assembly) for regulation and promotion of the real estate sector and for maters

it  is  expedient  to  establish  the  Real  Estate  Regulatory  Authority for regulation and promotion of the real estate sector and to protect  the  interest  of Buyers in the real estate sector by ensuring that the sale and  purchase  of  plot, Apartment or building, as the case may  be,  or  sale  of  real  estate  project,  to  the  buyer by a developer or owner holding title by himself or  through  a  company  or  an agent is  by  an  efficient  and  transparent  manner  and  to  regulate  mega  projects  in the real estate sector by any  developer and  provide  a  mechanism  for  speed Y dispute redressed Ivy establishing an Appellate Tribunal to hear appeals from the decisions, directions or orders of the RERA (Real Estate Regulatory Authority) and the recommendations of the inquiry officer and for  matters  connected  therewith  or incidental thereto follows:

CHAPTER I

PRELIMINARY

1. Short Title, extent and commencement (1) This Act may be called the Islamabad Real Estate (Regulation and Development) Act,
   • It extends to the Islamabad Capital
   • It shall come into force at
2. – (1) In this Act, unless the context otherwise requires,—

• “Authority” means the Islamabad RERA (Real Estate Regulatory Authority) established under this
• “Appraisal or inquiry officer” means the inquiry officer  appointed  by the Authority or the Appellate Tribunal under this Act;
• “Advertisement” means any document by the developer or his authorized agent described or issued as advertisement through any medium a n6 includes any notice, circular or other documents or publicity in any form, informing persons  about a  real  estate property or real estate project, or offering for sale of a plot,  building or apartment or inviting persons to purchase in any manner such plot, building or apartment or make advances or deposits for such purposes;
• “allottee” in relation to a real estate project or a real estate holding , means the person to whom a plot, apartment or building, as the case may be, has been sold (whether  as  freehold  or  Leasehold  which  is  not less  than  thirty  three  years)   by  way  of    a  sale,  transfer  or  otherwise or transferred by the developer  leaving  safe  of real  estate rights. given to him by the owner of the real estate , and includes the person who subsequently acquires the said allotment but does not  include  a person to whom  such plot, apartment or building,  as  the case  may  be, is given on rent;
• “Agreement for sale” means an agreement entered into between the developer and the allottee to sell and to purchase the property respectively;
• “apartment” whether called block, chamber, dwelling unit, flat, office, showroom, shop, godown, premises, suit, tenement. unit or by any other name, means a separate and self-contained part of any immovable property, including one or more rooms or enclosed spaces, located on one or more floors or any part thereof,  in a building  or on a plot of land, used or intended to be used for any residential or commercial use such as residence, office, shop, showroom or godown or for carrying on any business, occupation, profession or trade, or for any other type of use ancillary to the purpose specified;

(g)         “Appellate Tribunal” means the Real Estate Appellate Tribunal  established under this Act;

(n)         “Government” means the Federal Government.

• “Architect” means a person registered as an architect under the provisions of the Pakistan Council of Architects and town Planners Act :1983;

(j)          “building” includes any structure or  erection  or  part  of  a  stricture  or erection which is  intended  to  be  used  for  residential,  commercial  or for  the  purpose  of  any  business,  occupation,  profession   or  trade,  or for any other related purposes;

• “carpet area” means the net usable floor area of an apartment, excluding the area covered by the External walls, areas under services shafts, exclusive balcony Y or verandah  area  and  exclusive  open terrace area, but Includes  the  area  covered  by  the  internal partition walls of the

Explanation.—For the purpose of this clause, the expression “exclusive balcony or verandah area” means the area  of the  balcony or verandah, as the case may be, which is appurtenant to the  net usable floor area of an apartment, meant for the exclusive use of the allottee; and “exclusive open terrace area” means the area of open terrace which is appurtenant to the net usable floor area of an apartment, meant for the exclusive use of the allottee;

• “Chairperson” means the Chairperson of the RERA (Real Estate Regulatory Authority) appointed under this Act;
• “commencement certificate” means the commencement certificate or the  building  permit  or  the  construction  permit,  by  whatever  name called issued by the an authority empowered by law or the owner if so permitted by  law  to  allow  or  permit  the  developer  to  begin development works on an immovable property, as  per  the  sanctioned plan approved and issued an authority empowered by law;
• “Common areas” mean—

(i)          the entire land for the real estate project  even  when  the  project is developed in phases and registration under this Act is sought for only a phase out of the entire land;

• the cases, lifts, fire escapes, and common entrances and exits of buildings;

• the common basements, terraces, parks, play areas; open parking areas and common storage spaces;
• the premises for the lodging of persons employed for the management of the property including accommodation for watch and ward staffs or for the lodging and offices of community service personnel;

(v)    Installations of central services such as electricity, gas, water and sanitation, air-conditioning, system for water conservation and renewable energy and incinerating;

(vi)        the water tanks, sumps, motors,  fans,  compressors,  ducts  and all apparatus connected with installations for common i se;

(vii}       all community and commercial facilities ns provided in the real

estate project;

(viii)          all other portion of the project necessary or convenient for its maintenance, safety, etc., and In common use ;

• “Company” means a company incorporated and registered «rider the Companies Act, 2017 to develop and construct real estate
• “corporation” means a corporation established   ty or  under any

Federal Act;

• “development authority” means any public authority  established  by the Government in this behalf under any law for the time being in force;

“completion certificate” means the completion certificate, or such other certificate, by whatever name called, issued by the an authority empowered by law certifying that the real estate project h a‹. been developed according to the sanctioned plan, layout plan and specifications, as approved by the an authority empowered by law under the local laws;

”day” means the working day, in the federal territory, notified by the Federal  Government  from time to time;

“Land owner ” means any local authority or the Capital Development Authority created or established under any law for the  time  being  in force by the Federal Government holding a Iand lawfully which can be sold to the public or a lawful owner of the land having authority over land under its jurisdiction to sell it,  and has powers ‹:o give permission for development of such immovable property to a developer;

“development” with its grammatical variations and  cognate expressions, means carrying out the development of immovable property, engineering or other operations in, on, over  or  under  the land or the making of any material change in any immovable  property or land and includes re-development;

• “development works” means the external development works and internal development works on Immovable property;

“engineer” means a person who is registered as an engineer with the Pakistan Engineering Council;

“estimated cost of real estate project” means the total cost involved

in developing the real estate project and includes the land cost, taxes, development and other charges;

• “external development works” includes roads and road systems landscaping, water supply, sewerage and drainage systems, electricity supply transformer, sub-station, solid waste  management  and  disposal or any other work which may have to be executed in the periphery of, or outside, a project for its benefit, as may be provided under the local laws;
• “family” includes husband,  wife, minor son and unmarried daughter, father or mother wholly dependent on a person;

“garage” means a place within a project having a roof and walls on  three sides for parking any vehicle, but does not  include  an  unenclosed or uncovered parking space such as open parking areas;

“immovable property” includes. land, buildings, rights of  ways,  lights  or any otner benefit arising out of land and things  attached  to  the earth or permanently fastened to anything which is attached to the earth, but not standing timber, standing crops or grass;

“interest” the rates of interest payable by the developer or the allottee, as the case may be;

Explanation.— For the purpose of this clause—

(i)          the rate  of  interest  chargeable  from  the  allottee  by  the developer, in case of default in the payment scheme agreed upon in the agreement, shall be equal to the rate of interest which the developer shall be  liable  to pay the allottee,  in case of default;

• the interest payable by the developer to the  allottee  shrill  be from the date the developer did  not  deliver the  possession of the premises / real  estate  project  as  per the  agreement  between the Seller developer and buyer allottee. ;

“Member” means the member of the RERA (Real Estate Regulatory Authority) appointed under this Act;”local authority” means the Municipal Corporation or Municipality or Capital Development Authority or Panchayats or any other Local Body constituted under any law for the time being n force for providing municipal services or basic services, as the case may be, in respect of areas under its jurisdiction;”internal development works” in  relation to real estate project means roads, footpaths, water supply, sewers, drains, parks, tree planting, street lighting, provision for community buildings and for treatment and disposal of sewage and silage ’water, and solid waste management and disposal, water conservation,  energy  management, fire protection and fire safety requirements,  social infrastructure such as educational, health and other  public  amenities  or any other work in  a project for its benefit, as per sanctioned plans;

“Ministry” means the Ministry of Interior, Government of Pakistan

“notification” .means a notification  published  in  the  Official  Gazette and the expression “notify shall be construed accordingIy;

“occupancy certificate” means the occupancy certificate, or such other certificate by whatever name called, issued by  the an .authority’ empowered by law permitting occupation of any building constructed reasonably within the approved plan or layout as provided under local laws, which has the civic infrastructure such as water, sanitation on and electricity available;

“Person”  includes, — ( i)      an individual;

( ii)        art undivided family; (iii}      d Comp an y,

• a firm   under   the Pakistani  Partnership Act, 1932 or the Companies Act, 2017, as the case may be;
• an authority established and empowered by law;
• an association of persons or a body of individuals whether incorporated or not;
• a co-operative society registered under any law relating to co- operative societies;
• any such  other  entity  as  the  Federal  Government by notification, specify in this behalf;

(zk). “planning area” means a planning area or a development area or  a local planning area or a regional development plan area, by whatever name called, or any other area specified as such by .the Federal Government or any authority having such power under the law and includes any area designated by the Federal Government or any authority or an owner to be a planning area for future planned development, under the law  relating  to Town  and Country  Planning for the time being in force and as revised from time to time;

“prescribed” means prescribed by the Rules made under this Act; “project” means the real estate project as defined under this Act; “developer” means,—

• a person who constructs or causes to be constructed an independent building or a building consisting of apartments, or converts an existing building or a part thereof into apartments, for the purpose of selling all or some of  the  apartments  to other persons himself or through his legally nominated and declared assignees; or
• a person who develops a land given to him by an land  owner for conversion of the land into a real estate project, whether or not such person also constructs structures on any of the plots, for the purpose of selling to other persons all or some of the plots in the said project; or
• any development authority or any other public body in respect of allottees of—

(a) buildings or  apartments,  as  the  case  may  be,  constructed by such authority or body on lands owned by them or placed at their disposal by the Government allotment or for selling out; or

(b). plots  owned  by  such  authority  or  body  or  placed  at  their disposal by the Government for the purpose of selling all or some of the apartments or plots  for allotment or for selling out; or

(i v). a co-operative housing Finance society and a prima -y co operative housing society which holds a land lawfuly and constructs apartments or buildings  for  its  Members  or  in respect of the allottees of such apartments or  building  owned by it; or

(v). any other person who acts himself as a builder,  coloniser, contractor, developer, estate  developer  or  by  any  other  name or claims  to  be  acting  as  the  holder  of  a  power  of  attorney from the  owner  of  the  land  on  which  the  building  or  apartment is constructed or plot is developed for sale or

(i). such other person who constructs any building  or apartment  for sale to the general public.

Explanation.— For the purposes of this clause, where’ the person who constructs or converts a building into apartments develops a plot for sale and the persons who sells apartments or plots are different persons, both of thereon  shall  be deemed to be the developers and shall be jointly liable as such for the functions and responsibilities specified under- this Act or the Rules and regulations made thereunder;

(zo). “prospectus” means  any  document  described  o   issued  as a prospectus or  any notice, circular,  or other  document  offering  for  sale of any real estate project or inviting any person to make advances deposits for such purposes;

9

(zp)  “real estate agent” means any person, who negotiates  or  acts  on behalf of one person in a transaction  of transfer  of his plot, apartment or building, as the case may be, in a real estate  project,  by  way  of sale, with another person or transfer  of  plot,  apartment  or building,  as the case may be, of  any  other  person  to  him  and  receives  remuneration or fees or any other charges for his services whether as commission or otherwise and includes  a  person  who  Introduces,  through any medium, prospective buyers and sellers to each other for negotiation for sale or purchase of plot, apartment or building, as the case may be, and includes property dealers, brokers, middlemen by whatever name called;

 

(zq) “real estate project” means the development of a plot into a building or a building consisting of apartments, or converting  an existing building or a part thereof into apartments, or the development of land into plots for residential hoses and commercial plots for commercial use or apartments in an apartment building or in a portion of a building , as the case may be, for the purpose of selling all or some of the said apartments or plots or building, as the case may be, and includes the common areas, the development works, all improvements and structures thereon, and all easement, rights and appurtenances belonging thereto;

“regulations” means the regulations made by the Authority under this Act;

“rule” means the rules made under this Act; and

“sanctioned plan” means the site plan, building plan, service plan, parking and circulation plan, landscape plan, layout plan, zoning plan and such other plan and includes structural designs, if applicable, permissions such as environment permission and such other permissions, which are approved by the an authority empowered  by law prior to start of  a real estate project shall continue  at the pleasure  of the Authority under this Act.

(2) The words and expressions used herein but not defined in this Act and defined in any law for the II me being in force or In the municipal laws or such other relevant laws of the Federal Government shall  have  the  same  meanings respectively assigned to them in those laws.

CHAPTER II

REGISTRATION OF REAL ESTATE PROJECT AND REGISTRATION OF REAL ESTATE AGENTS

3. Prior Registration of real estate project with Real Estate Regulatory Authority (1) No developer shall advertise, market, book, sell or offer for sale, or invite persons to purchase in any manner any plot, apartment or building, as the case may be, in any real estate project or part of it, in any planning area, without registering the real estate project with the RERA (Real Estate Regulatory Authority) established under this Act:

Provided that projects that are ongoing en the date of commencement of this Act and for which  the  completion  certificate  has  not  been  issued,  the  developer shall make an application with  the  documents  required  to  the  Authority  for registration of the said project within a period of three months from the date of commencement of this Act:

Provided further that If the Authority thinks necessary, in the interest of allottees, for projects which are developed beyond the planning area but carry a permission of the local authority, it may, by order, direct the developer such project to register with the Authority so that the provisions of this Act or I he rules and regulations made thereunder become applicable to such projects.

(2) Notwithstanding anything contained in sub-section (1), no registration of the real estate project shall be  required  with  the  Authority  where  the  developer has received completion certificate  for  a  real estate  project  prior  to  commencement of this Act,

4. Application for registration of real estate  -(1)  Every  developer shall make an application  to  the  Authority  for registration  of  the  real estate project in such form, manner, within such time and accompanied by such fee as may be specified by the regulations made by the Authority.

(2) The developer shall enclose the following documents along with the application referred to In sub section (1), namely: —

(a)  Undisputed ownership documents of the land on which the real estate project is being built and sold.

(b) If the developer is other than the owner of the land, then a legal authorization for the developer to carry out the ”real estate project clearly specifying whether he will be developing commercial plots or buildings or residential plots or buildings or apartments and  the proposal as to how he will sell these properties  after  development along with a time frame.

• a brief details of his enterprise Including its name, registered address, type of enterprise proprietorship, societies, partnership, companies, an authorityy empowered in accordance with the Capital Development Authority law and regulations and the particulars of registration, and the names and photographs of the developer;
• a brief detail of the projects launched by him, in the past five years, whether already completed or being developed, as the case may be, including the current status of the said projects, any delay in its completion, details of cases pending, details of type of land and payments pending;
• an authenticated copy of the approvals and commencement certificate from the an authority empowered by law obtained in accordance with the laws as may be applicable for the real estate project mentioned in the application, and where the project is proposed to be developed in phases, an authenticated copy of the approvals and commencement certificate from the an authority empowered in accordance with the Capital Development Authority law and regulations for each of such pleases;

the sanctioned plan, layout plan and specifications of the proposed project or the phase thereof, and the whole project as sanctioned by the an authority empowered by law ;

• the plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof including firefighting facilities, drinking water facilities, emergency evacuation services, use of rrenewable energy;
• the location details of the project, with clear demarcation the land dedicated for the project along with its boundaries incIuding the latitude and longitude of the end points of the project;
• proforma of the allotment letter, agreement for sale, .apo the conveyance deed proposed to be signed with the allottees;
• the number, type and the carpet area  of  apartments  for  same  in  the project  along  which  the  area  of  the  exclusive  balcony or verandah areas and the exclusive open terrace areas apartment with the apartment the number and areas of  garage for sale in the project, if any
• the names and addresses of his real estate agents or  his advertiser and promoters, If any, for the proposed project;
• the names and addresses of the contractors, architect, structure engineer, If any and other persons concerned with the development of the proposed project;
• a declaration, supported by an affidavit and documents, which shall be signed by the developer or any person authorized by the developer, stating: —

that he has a legal  Title to the land on which the development is proposed along with legally valid documents with authentication of such title, if such land is owned by another person;

• that the land is free from all encumbrance*, or as the case may be details of the encumbrances on such land including any rights, title, Interest or name of any party in or over such land along with details;
• the time period within which he undertakes to complete the project or phase thereof, as the case may be;

(!V) that seventy per cent of the amounts realized for the real estate project from the allottees from time to  time  and  this shall be deposited in a separate account to be maintained In a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose:

Provided that the developer shall withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project:

Provided further that the amounts from the separate account shall be withdrawn by the developer after it is certified by an engineer, an architect and a chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project:

Provided also that the developer shall get his accounts audited within six months after the  end of  every  financial  year by a chartered accountant in practice, and shall produce a statement of accounts duly certified and signed by  such chartered accountant and it shall be verified during the audit that the amounts collected for a particular project have been utilized for the project and the withdrawal has  been  in  compliance with the proportion to  the percentage  of completion of the project.

• that he shall take all the pending approvals on time, from the authorities concerned;
• that he has furnished such other documents as may be prescribed by the rules or regulations made under  this  Act; and
• such other information and documents as may be required by the Authority from time to

(3) The Authority shall operationalize a web based  online  system  for submitting applications for registration of projects  within  a period of one year  from  the date of the First meeting of the Authority, however hardcopy  applications  can  also be submitted to the Authority.

5. Registration of the Developer with the Authority.-(1) on receipt of the application from the developer for grant of registration to it, the Authority shall within a period of thirty

• grant registration subject to the provisions of this Act  and the rules and regulations made thereunder, and provide a registration number, including  a Login Id and password to the applicant for accessing the  website  of  the Authority and with directions  the developer to create his web page and to fill therein the details of the proposed project and prominently mention the Registration Number issued by the Authority in all its correspondence and advertisements; or
• reject the application for reasons to be recorded in writing, if such application does not conform to the provisions of this Act or  the rules or regulations made thereunder:

Provided that no application shall be’ rejected unless the applicant has been given an opportunity of being heard in the rnatter.

• If the Authority fails to grant the registration or reject  the application, as the case may be, as provided under sub-section (1), the project shall be deemed to have been registered, and the Authority shall within a  period  of  seven  clays of the expiry of the said period of thirty days specified under  sub section  (1), provide  a registration number and a Login Id and password to the developer for the accessing of the Authority and to create his web page and to  fill  therein  the details of the proposed project. If the Authority wishes  not  to grant  registration  to the developer It can do so but only after a reasonable opportunity of
• The registration granted under this section  shaII be  valid for  a  period as requested by the developer in his application for  completion  of  the  project  or  phase thereof, as the case may

1. Extension of registration of the Developer.- The  registration   granted  under section 5 may be extended by the Authority on an application made by the: developer due to force majeure, in such form and on payment of such fee as may be specified by regulations made by the Authority:

Provided t fat the Authority may in reasonable circumstances, without default on the part of the developer, based on the facts of each case, anal for reasons to be recorded In writing, extend the registration granted to a project for such time as it considers necessary, which shall, in aggregate, not exceed a perIod of one year:

Provided further that no application for extension of registration shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

Explanation.— For the purpose of  this  section,  the  expression  “force majeure” shall mean a case of war, flood, drought, ’fire, cyclone, earthquake  or  any  other calamity caused by nature affecting the  regular  development  of  the  real estate project.

7. Revocation of registration of the Developer(1) The Authority may, on receipt of a complaint or suo motu in this behalf or on the recommendation of the an authority empowered by law , revoke the registration granted under section 5, after being satisfied that—
   • the developer makes default in doing anything required by or under this Act or the rules or the regulation ns made thereunder;
   • the developer violates any of the terms or conditions of the approval given by the an authority empowered by law;
   • the developer is involved in any kind of unfair practice  or irregularities.

Explanation.— For the purposes of  this  clause,  the  term “unfair practice means” a practice which, for the purpose of promoting the sale or development of any real estate project adopts any unfair method or unfair or deceptive practice including any of the following practices, namely: —

• the practice of making any statement, whether in writing or by visible representation which,—
  • falsely represents that the services are of a particular standard or grade;
  • represents that the developer has approval or affiliation which such developer does not have;
  • makes a false or misleading representation concerning the services;
• the developer permits the publication of any advertisement or prospectus whether in  any newspaper or otherwise of services that are not intended to be offered;
• the developer indulges in any fraudulent
• The registration granted to the developer under section S shall not be revoked unless the Authority has given to the developer not less than  thirty  days notice, in writing, stating the grounds on which  it  is  proposed  to  revoke  the registration, and has considered any  cause  shown  by  the  developer  within  the  period of that notice against the proposed
• The Authority may, instead of revoking the registration under sub-section ( 1), permit it to remain in force Subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any  such terms and conditions so imposed shall be binding upon the developed-.
• The Authority, upon the revocation of the registration,-

(a)         shall debar the developer from accessing Its website in relation to that project and specify his name in the list of defaulters and display his photograph on its website and also inform the public about such revocation or registration;

(b)  shall facilitate the remaining development works to be carried out in accordance with the approved proposal;

• shall direct all the banks holding the project bank account of the Developer, to immediately freezre the account, and thereafter provide an opportunity of hearing within seven working days and take such further necessary actions, including consequent de-freezing of the said account, towards facilitating the remaining development work’s.;
• may, to protect the Interest of allottees or in the public interest, issuesuch directions as It may deem necessary

8. Obligation of Authority consequent upon lapse of or on revocation of registration of a Developer.- Upon lapse of the registration or on revocation of the registration under this Act, the Authority, may consult: the Federal Government to take such action as it ma/ deem fit including the carrying out of the remaining development works by an authority empowered by law or by the association of aliottees or in any other manner, as may be determined by the Authority:

Provided that no direction,  decision  or  order  of  the  Authority  under  this section shall take effect until the expiry of the period of appeal provided uncier the provisions of this Act: Provided further that in case of revocation of registration of a project under this  A‹:I,  the  association  of  allottees  shall  have  the  first  right  of  refusal for carrying out of the remaining development works.

9. Registration of real estate agents.-(1) No real estate agent shall facilitate the sale or purchase of or act on behalf of any person to facilitate the sale or purchase of any plot, apartment or building, as the case maybe, in a real estate project or part of it, being the part of the real estate  project  registered  under  section 3, being sold by the developer in any planning area, without obtaining registration under this

• Every real estate agent shall make an application to the prescribed Authority for registration in  such  form,  manner,  within  such  time  and  accompanied by such fee and documents as may be prescribed by the Islamabad Real Estate Agents and Motor Vehicle Ordinance,
• The ”Authority shall, within such period, in such manner and upon satisfying itself of the fulfillment of such conditions, as may be prescribed—
• grant a single general registration to the real estate agent  for  two years which can be renewed after every two years; Or
• grant a single registration to the real estate agent for a particular project; Or
• reject the application for reasons to be recorded In writing, if such application does not conform to the provisions of the  Act or the rules  or regulations made thereunder:

Provided   that no application shall be rejected unless the applicant has been given an opportunity of being heard in the matter.

(4)     Whereon the completion of the period specified under sub-section {3),    if the applicant dues not receive any communication about the deficiencies in his application or the rejection of his application, he shall be deemed to have been registered.

• Every real estate agent who Is registered as per the provisions of this Act or the rules and regulations made thereunder, shall be granted a registration number by the Authority, which shall be quoted by the real estate agent  in  every sale facilitated by him under this
• Every registration shall be valid for such period as may  be prescribed, and shall be renewable for a perlod in such manner and on payment  of  such  fee as  may be
• Where any real estate agent who has been granted registration  under this Act commits breach of any of the conditions thereof or any other terms and conditions  specified  under  this Act  or any  rules  or regulations  made  ahereunder,  or  if there is any complaint against a  real  estate  agent  or  where  the  Authority  is satisfied that such registration has been secured by the real estate agent through misrepresentation or fraud, the Authority may,  without  prejudice  to  any other provisions       this Act, revoke the  registration  or  suspend  the  same  for   such period as it thinks fit: Provided  that no such revocation  or  suspension  shall  be  made by the Authority unless an opportunity of  being  heard  has  been  civen  to  the  real  estate

10. Functions of real estate agents.- Every real estate Agent registered under section 9 shall—
    • not facilitate  the  sale  or purchase  of  any  plot,  apartment  or building, as the case may be, in a real estate project or part of it,  being  sold by the developer in any planning area, which is not registered with the Authority;
    • maintain and preserve such books of account, records: and documents

as may lie prescribed;

• net involve himself in any unfair trade practices, namely: —

• the practice of making any statement, whet her orally or in writing or by visible representation which—
  • falsely represents that the services are of a particular

standard  or grade;

• represents any approval or affiliation which the agent  or the developer does not have;
• makes a false or misleading representation concerning the services;

(ii) permitting  the  publication  of   any  advertisement   whether   in any newspaper or otherwise of services I.hat nre not inI:ended to be offered.

• facilitate the possession of all the information and documents, as the allottee, is entitled to,  at the time of  booking  of  any plot, apartment  or building, as the case may be;
• discharge such other functions as may be

CHAPTER EII

FUNCTIONS AND DUTIES OF DEVELOPER

11. Functions and duties of developer– (1) The developer. shall,  upon receiving his Login Id and password under clause (a) of sub-section (1) or under sub-section (2) of section 5, as the case may be,  create  his  webpage  on  the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of section 4, in all the fields as provided, for public viewing, including—
    • details of the registration granted by the Authority;
    • quarterly up-to-date the list of number and types of apartments  or plots, as the case may be, booked;
    • quarterly up-to-date the list of number of garages booked;

• quarterly up-to-date the list of approvals taken and the approvals which are pending subsequent to commencement certificate;
• quarterly up-to-date status of the project; and

(f)          such other information and documents as may be specified by the regulations made by the Authority.

• The advertisement or prospectus issued or published by the developer shall mention prominently the website address of the  Authority,  wherein  all details of the registered project have been entered and include the registration number obtained from the Authority and such other matters incidental
• The developer at the time of the booking and issue of allotment letter shall be responsible to make available to the allottee, the following information, namely: —
• sanctioned plans, layout plans, along with specifications, approved by the an authority empowered by law, by display at the site or  such  other place as may be specified by the regulations made by the Authority;
• the stage wise time schedule of completion of the project, including the provisions for civic infrastructure like water, sanitation and electricity.
• The developer shall—

(a)          be responsible  for  all obligations,  responsibilities  and   function*.  under the provisions of this Act or the rules  and  regulations  made there under or to the aIlottees as per the agreement for sale, or to the association of allottees, as the case may be, till  the  conveyance  of  all the apartments, plots or buildings,  as  the  case  may  be,  to  the allottees, or the common areas  to  the  association  o-  allottees  or  the an authority empowered by law, as the case may be:

Provided that the responsibility of the developer, with respect: to the structural defect or any other defect for such period as is referred to in sub-section (3) of section 14, shall continue even after the conveyance deed of all the apartments, plots or building s, as the case may be, to the allottees are executed.

• be responsible to obtain the completion certificate ‹or the occupancy certificate, or both, as applicable, from the relevant an authority empowered by law as per local laws or other laws forr the time being in force and to make it available to the al lottees individually or to the’ assciciation of allottees, as the case may be;
• be .responsible to obtain the lease certificate, where the real estateproject is developed on a  leasehold  land,  specifying  the  period  of lease, and certifying that all dues and charges  in  regard to  the leasehold land has been paid, and  to  make  the  lease  ce1!ficate available to the association of allottees;
• be responsible for providing and  maintaining  the  essential  services, on reasonable charges, till the taking over of the maintenance of the project by the association of the allottees;
• enable the formation of an association or society  or  co-operative society, as the case may be, of the allottees,  nr  a  federatlor of  the same, under the laws applicable: Provided that in the absence of local laws, the association of allottees, by whatever name called, shall be formed within a period of  three  months  of  the’  ma; ority  of  allottees  having booked their plot or  apartment  or  building,  as  the case  may  he, in the project;
• execute a registered conveyance deed of the apartment, plot orbuilding, as the case may be, in favour of the allottee along with the undivided proportionate title in the common  areas  to  the  association of allottees or an authority empowered by law , as the case may be, as provided under this Act;
• pay all outgoings until he transfers the physical possession of the real estate project to the allottee or the associations of allottees,  as  the case may be, which he has collected from the allottees, for  the  payment of outgoings (including land cost, ground rent, municipal or other local taxes, charges for water  or  electricity,  maintenance charges, including mortgage loan and interest on mortgages or other encumbrances and such other liabilities payable to competent authorities, banks and financial institutions, which are related to the project):

Provided that where any developer falls to pay all or any of the outgoings collected by him from the allottees or any liability, mortgage loan and interest thereon before transferring the real estate project to such allottees, or the association of the allottees, as the case may be, the developer shall continue to be liable, even after the transfer of the property, to pay such outgoings and penal charges, if any, to the authority or person to whom they are payable and be liable for the cost of any legal proceedings which may be taken therefore by such authority or person;

• after he executes an agreement for sale for any apartment, plot or building, as the ca se may be, not  mortgage  or  create  a  charge  on such apartment, plot or building, as the case may be, and if any such mortgage or charge Is made or created then notwithstanding anything contained in any other law for the time being In  force,  it  shall  not affect the right and interest of the allottee who has taken or agreed to take such apartment, plot or building, as the case may be;

(S) The developer may cancel the allotment  only  in  terms  of  the agreement for sale:

Provided that the allottee may approach the Authority for relief, if he is aggrieved by such canceIIation and such cancellation is not in accordance with the terms of the agreement for sale, unilateral and without any sufficient cause.

(6)         The developer shall prepare and maintain all such other details  as may be specified as required from time to time by Authority.

12. Obligation of developer regarding veracity of the advertisement or – Where any person makes an advance or a deposit on the basis of the information contained in the notice advertisement or prospectus,  or  on the  basis  of any model apartment, plot or building, as the case may be, and sustains any loss or damage by reason of any Incorrect, false statement included the rein, he shall be compensated by the developer in the manner as provided under this Act:

Provided that If the person affected by such incorrect, false statement contained In the notice, advertisement or prospectus, or the mode I apartment, plot or building, as the case may be, intends to withdraw from the proposed project, he shall  be  returned  his entire  investment  along  with  interest  at. such  rate  as  may  be prescribed and the compensation in the manner provided under this Act.

13. No deposit or advance to be taken by developer without first entering into agreement for sale.- (1) A developer shall not accept  a sum  more  than  ten  per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment: or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any Iaw for the time being in

(2) The  agreement for sale referred to in sub-section (1) shall be in such form as may be prescribed and shall specify the particular  of development of the project including the construction of building and apartments,                 along with specifications and internal development works and external development works, the dates and the manner by which payments towards  the cost of the apartment,  plot or building, as the case may be, are to be made by the allottee and the date on which the possession of the apartment, plot or building is to be handed over,  the rates of interest payable by the developer to the allottee and the aIIottee to the developer in case of default, and such other particulars, as maby be prescribed.

14. Adherence to sanctioned plans and project specifications by the -(1} The proposed project shall be developed and competed by the developer in accordance with the sanctioned plans, layout plans and specifications as approved by the authorities approved by the Federal Government.

• Notwithstanding anything contained in any law, contract  or agreement, after the sanctioned plans, layout plans and specifications and  the nature of the fixtures, fittings, amenities and common areas, of the apartment, plot or building, as the case may be, as approved by the an authority empowered by law, are disclosed or furnished to the person who agree to take one or more of the said apartment, plot or building, as the case may be, the developer shall not make—

(i)    any  additions  and  alterations  in  the  sanctioned  plans,  layout  plans and specifications and the nature of fixtures, fittings and amenities described therein in respect of the apartment, plot or building, as the case may be,  which  are  agreed  to  be  taken,  without  the  previous consent of that person:

Provided that the developer may make such minor additions or alterations as may be required by the allottee,  or  such minor  changes or alterations as may be necessary due to architectural and structural reasons duly recommended and verified by an authorized Architect or Engineer after proper declaration and intimation to the allottee.

Explanation.— For the purpose of this section, “minor additions or alterations” excludes structural change including an addition to the area or change in height, or the removal of part of a building, or any change to the structure, such as the construction or removal or cutting into of any wall or a part of  a  wall, partition,  column, beam, joist, floor including a mezzanine  floor  or  other support, or a change to or closing of any required means of access ingress or egress or a change to the fixtures or equipment, etc.

any other alterations or additions in  the  sanctioned  plans,  layout  plans and specifications of the buildings or the common  areas  within the project without the previous  written consent  of  at least  two-thirds of the allottees, other than the developer, who have agreed to take apartments in such building.

Explanation.— For the purpose of this clause, the allottees, irrespective of the number of apartments  or plots,  as the case may  be, booked by  him or booked in the name of his family, or in the case  of other persons such as companies or firms or any association of individuals, etc., by whatever name called, booked in its name or booked in the name of its associated entities or related enterprises, shall be considered as one allottee only.

• In case any structural defect or any other defect n workmanship, quality or provision of services or any other obligations of the developer as. per the agreement for sale relating to such development is brought to the notice  of  the developer within a period of five years by the allottee from the date of hancing over possession, it shall be the duty  of  the  developer  to  rectify  such  defects  without further charge, within thirty days, and  in  the  event  of  developer’s  failure  to  rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act .

15. Obligation of developer in  case  of  transfer  of  a  real  e!•tate  pro ject  to a Third –(1) The developer shall not transfer or assign his majority rights and liabilities In respect of a real estate project to a third party without obtainirg prior written consent from two third allottees, except the developer, and without the prior written approval of the Authority: Provided that such transfer or assignment shall not affect the allotment or sale of the apartments, plots or buildings was tne case may be, in the real estate project made by the erstwhile developer.

Explanation.— For the purpose of this sub-section, the allottee, irrespective of the number a apartments  or  plots,  as  the  case  may  be,  booked  by  him  or booked in the name of his family, or in the case of other persons such as companies or firms or any associationn of individuals, by whatever  name  called,  booked  in  its name or booked in the name of its associated entities or related enterprise, shaft be considered as one allottee only.

(2) on  the transfer  or assignment  being  permitted by  the aIIottees  and  the Authority under sub-section (1), the intending developed- snail be required to independently comply with all the pending obligations under the provisions  ‹›f this  Act or the rules and regulations made thereunder, and the pending obligdt icons a’s per the agreement for sale entered into dy  the  erstwhile  de developer  with  the allottees:

Provided that any transfer or assignment permitted under provisions of this section shall not result in extension of  time  to  the  intending  deve oper  to  complete the real estate project and he shall be required to comply with  all  the  pending obligations of the erstwhile developer,  and  in  case  of  default,  such  intending developer shall be liable to the consequences of  breach  of delay,  as  the case may be, as provided under this Act or the rules and regulations made thereunder.

16. Obligation of developer   regarding   insurance   of   real  estate   – ( 1) The developer shall obtain all such insurances as may be notified by the Authority, including but not limited to insurance in respect of —

• title of the land and building as a part of the real estate project; and
• construction of the real estat’e project
• The developer shall be liable to pay the premium and charges in respect of the insurance specified in sub-section (1) and shall pay the same before transferring the insurance to the association of the
• The .insurance as specified under sub-section (1) shall stand transferred to the benefit of the allottee or the association of allottees, as the case may be, at the time of developer entering into an agreement for sale with  the allottee.
• On formation of the association of the allottees, all  documents relating to the insurance specified under sub-section (1 ) shall be handed over to the association of the

17. Transfer of titles.-(1) The developer shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees or the an authority empowered by law, as the case may be, and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees  and the common  areas  to the association of the allottees or tne an authority empowered by law, as the case maybe, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local

Provided that, in the absence of any local law, conveyance deed in favour of the allottee or the association  of the allottees  or the an authority  empowered  by law, as the case may be, under this sc’ction shall be carried out by the developer within three months from date of issue of occupancy certificate.

• After obtaining the occupancy certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the developer to handover the necessary documents and plans, including common areas, to the association of the allottees or the an authority empowered by law, as the case may be, as per the local laws:

Provided that, in the absence of any local  law,  the developer  shall  handover the necessary documents and plans, including common  areas, to  the  association  o – the  allottees  or  the  competent  authority,  as  the  case  may   be,   within  thirty  daye: after obtaining the occupancy certificate.

18. return of the amount and compensation.-(1) If” the develop – fails to complete or is unable to give possession of an apartment, plot or building ,—-

in accordance with the terms of the agreement for «ale or, e s the case may be, duly completed by the date specified there n; or

(b)      due to discontinuance of his business as a developer on account of suspension or revocation of the registration under this Act or for any other reason, he shall be liable on demand to the allottees in case the allottee wishes to withdraw from the project, without prejudice to any other remedy available, to return the amount received by him in respect of that apartment, plot, building, as the .ase ma y be, with interest at such rate as may be prescribed in this behalf including compensation in the manner as provided under this Act:

Provided that where an allottee does not  intend  to  withdraw  from the project, he shall be paid, by the developer , interest for everry month of delay, till the handing over of the  possession,  at  such  rate as may be mutually agreed in writing between the Developer – and the allottee otherwise the case shall be decided by the Authority.

(2)         The  developer  shall  compensate  the  allottees  in  case  of  any   loss caused  to him due to defective title  of  the  land,  on  which  the  project  is  being developed  or has  been  developed,  in  the  manner  as  provided   under  this ACT.  and the claim for compensation under this subsection  shall  not  be  barred  by  irritation provided under any law for the time being in force.

• If the developer fails to discharge any  other  obligations  imposed  on him under this Act or  the  rules  or  regulations  made  thereunder  or  in  accordance with the terms and conditions of the agreement for  sale,  he  shall  be  liable  to  pay such compensation to the allottees or face penalties imposed upon  hirn  by  the Authority after giving him an opportunity of

CHAPTER IV

REGHTS AND DUTIES OF ALLTTEES

19. Rights and duties of allottees.- (1) The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the an authority empowered by law and such other information as provided in this Act or the rules and regulations made thereunder orthe agreement for sale signed with the

• The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water,  sanitation,  electricity and other amenities and services as agreed to between the .developer and the allottee in accordance with the terms and conditions of the agreement for
• The allottee shall be entitled to claim the  possession  of  apartment, plot or building, as the case may be, and the association  of  allottees  shall  be  entitled to claim the possession of the common  areas,  as per the declaration  given by the developer under this
• The allottee shall be entitled to claim the refund of amount paid along with interest at such rate as may be prescribed and compensation in the manner as provided under this Act, from the developer, if the developer fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or revocation of his registration under the provisions of this Act or the rules or regulations made
• The Allottee shall be entitled to have the necessary documents and plans, including that of common  areas, after handing over  the  physical possession of the apartment or plot or building as the case may be, by the
• Every allottee, wno has entered into an agreement for sale to take an apartment, plot or building as the case may be, under th1S Act, shall be responsible to make necessary payments in the manner and within the time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if arty,

(7)           The allottee shall be liable to pay interest, at such rate as m‹zy be prescribed, for any delay in payment towards any amount or charges to be paid under as undertaking under this Act.

(8) The obligations of the allottee as undertaken under  this Act  and the  liability towards interest under as undertaken under this Act way be reduce J when mutually agreed to between the developer and such allottee,

(9) Every  allottee  of  the  apartment,  plot or building  as the case may  be. shall participate towards the formation of an association or society or  cooperative  society of the allottees,. or a federation of the same.

(10) Every allottee shall take physical possession of the apartment, pIot or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be.

(11) Every allottee  shall participate  towards  registration  of  the conveyance deed of the apartment, plot or building, as the  case may  be,  as  provided under this Act.

CHAPTER V

THE REAL ESTATE .REGULATORY AUTHORITY

20. Establishment and incorporation   of   Real   Estate   Regulatory – 1) The Federal Government shall, within a period of one year from the date of coming into force of this Act, by notification, establish a n Authority  to  be known as the RERA (Real Estate Regulatory Authority) to exercise the powers conferred on it and to perform the functions assigned to it under this Act:

Provided that until the establishment of the Authority under this section, the Ministry shall, by order in the transitory period, designate any other Authority to function as the Authority for the purposes under this Act.

Provided also that after the establishment of the Regulatory Authority, all applications, complaints or cases pending with the Regulator Authority designated, shall stand transferred to the Regulatory Authority so established  and  Shall  be heard from the stage such applications, complaints or cases are transferred

(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal, with the power, subject to the provision  of this Act, to hold and dispose of property, both movable and immovable, and to contract, and shall, by the said name, sue or be sued.

(3) On  coming  into force of this Act ,  the Ministry  shall  appoint  a person, after due process of advertisement , as a senior  administrative  officer  of  the Authority who shall do all the file work for establishment  of  the  Authority  and  he shall have the responsibility to take any or all steps to get released the seed money from the Government and shall have the authority to  spend  from  the seed money and shall get allocated suitable premises for the office of the Authority and for  this purpose he shall have the authority  to  use  the  powers  of  the  authority  and  tne Ministry of Interior Government of Pakistan  shall  extend  all  possible  help  to  him  as and when required by him. The senior administrative officer shall continue to be an employee of the Authority after the Chairperson of the Authority assumes charge.

21. Composition of the  -(1)  The  Authority  shall  consist  of  six Members which shall be notified by the Ministry in the  official  Gazette.  The  members shall be, –
    • One member to be nominated by the Chairperson of the Pakistan Engineering Council from amongst the members of the Pakistan Engirieering Council,

• One member to be nominated by the Chairperson of the Pakistan Council of Architects and Town Planners from amongst  the members of the Pakistan Council of Architects and Town

(c)                  One member to be nominated by the speaker of the National Assembly from amongst the members of the National Assembly

• One member to be nominated by the Chairman Senate from amongst the members of the Senate,
• Two members to be selected by a Selection Committee consisting of the Mayor of Islamabad and Chairman CDA and Joint Secretary Administration of Ministry of Interior. The selection of members of the Authority shall be made from amongst the applicants having post graduate qualification in any field and who are residents of Islamabad for at least Forty. years and have at  least  twenty  five  years’ experience of Government

(2) All the persons shall be nominated and selected as member!, o’’ the Authority by the concerned and shall be notified by the Ministry within sixty cays of  coming into force of this ACT without fail.

(3)  As s‹›on as the members  have been notified, the Ministry  shall ca I the  first meeting where the members of the Authority shall elect a Chairperson of the authority from .amongst themselves for a term of five years  or  till expiry of his term as a member of the authority whichever is longer.

Provided the members are unable to elect  a  Chairman  of the  authority,  then the Ministry of Interior  shall  nominate  one  member  of  the authority   the Chairman of the Authority for a term of five years or till. expiry of his  term  as  a member of the Authority whichever is longer.

(4)  The  Quorum  of  the  First  meeting  and  subsequent  meetings  shaII  be four members of the Authority present and voting.

(5)         The Chairperson of the Authority shall be notified  by  the  Ministry in the official Gazette for a term of five years or till expiry of his term as a member of the authority whichever is longer.

• The Chairperson and the members  shall  dedicate  maximum  time  to the work of the Authority and preferably work on fulltime
• If there falls a vacancy of a member, such vacancy shall  be filmed  by the relevant Authorities within thirty days without
• The Authority can co-opt any number of technical  experts  of a field  in a meeting of the Authority as it may deem fit and pay them a reasonable honorarium for their services.

Z2. Age limit of the Chairperson and Members of the Authority on appointment and age of superannuation. -The Chairperson and other members of the Authority shall be below the age of sixty five years on the date of appointment and shall cease to be The Chairperson and other Members elf the Authority upon attaining the age of sixty five years.

13. Terms of office of Chairperson and Members of the Authority.-(1)The Chairperson and Members shall not office for a term not exceeding five years from the date on which they enter upon their office, or until they attain the age of  sixty five years, whichever is earlier and shall not be eligible for re-appointment.

(2) Before appointing  any  person  as  a  Chairperson  or  Member,  the Ministry shall satisfy itself that the person does not have any such financial or other interest as is likely to affect prejudicially his functions as such Member.

25. Salary and allowances payable to Chairperson and Members of the – The salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other Members shall be such as prescribed by the Federal Government and shall not be varied to their disadvantage during their tenure.
26. Resignation and removal of the Chairperson and Members of – {1) Notwithstanding anything contained in sub-sections (1)  of  section 23, the Chairperson or a Member, as the case may be, may,—

• relinquish his office by giving in writing, to the Federal Government, notice of not less than three months; or
• be removed from his office in accordance with the  provisions  of section 27 of this

2) Any vacancy caused to the office of  the  Chairperson  or  any  other Member shall be filled-up within a period of  three  months  from  the  date  on  which such vacancy occurs.

27. Administrative powers of the -The Chairperson shall bc thc Chief Executive and the Principal accounting Officer of the authority and shall have powers of general superintendence and directions in the conduct of the affairs of Authority and he shall, in addition to presiding over the meetings of the Authority, exercise and discharge such administrative powers and functions of the Authority as may be prescribed.
28. Removal of Chairperson and Members from office in certain – (I) The Federal Government may, in accordance with the procedure notified, remove from office the Chairperson or other Members, if the Chairperson or such other Member, as the case may be,—

• has been adjudged as an insolvent; or

(b)         has been convicted of an offence, involving moral turpitude; or

• has become physically or mentally incapable of acting as a member;
• has acquired such financial or other interest as is likely to affect. prejudiciaIIy his functions; or
• any complaint of administrative or financial irregularity and  illegality by misuse of his authority as the Chairman of the

(2)      The Chairperson of  the  Authority  shall  be  removed  from  Office  a•. member  and  as Chairperson  by the Federal  Government     on .e  charge!•  against: him are adjudged by the appellate tribunal after inquiry. An inquiry  ,about  and‘ allegation   administrative or financial irregularity and illegality by misuse of his authority as the  Chairperson  of  the  authority  or  any  other   charge   in subsection No ( 1) above shall be done by an inquiry officer appointed by  the  appellate tribunal. The Chairperson of  the Authority  so  under  trial  shall be  informed of the charges against him and given a reasonable opportunity of being heard in respect of the se charges and only then the appellate tribunal shall pass a decision on the charges whether the continuance  in office  of  the chairperson is prejudicial  to the public interest or otherwise.

(3)    A member of the Authority  shall be removed  from  office  as member   by the Federal Government only once charges against him are adjudged by the appellate tribunal after inquiry. An inquiry about any allegation administrative or financial irregularity and illegality by misuse of his authority as the member of the authority or any other charge in subsection No (1) above shall be done by  an inquiry officer appointed by the appellate tribunal. The member of the Authority so under trial shall be informed of the charges against him and given a reasonable opportunity cal being heard in respect of those charges and only then the appellate tribunal shall pass a decision on the charges whether the continuance in office of the chairperson is prejudicial to the public interest or otherwise.

28. Restriction on  Chairperson  or  Members  on  employment   after cessation of office.-( 1) The Chairperson or a Member, ceasing to hold office as such, shall not—

• accept any employment in, or connected with, the management or administration of, any person or organization which has been associated with any work under this Act, from the date on which he ceases to hold office: Provided that nothing contained in this section shall apply to any employment under the Federal Government  or a local authority or in any statutory authority or any corporation established by or under any Federal Act or a Government Company, whose majority shares are held by the Federal or Provincial Government, which is not a developer  as per  the provisions  of  this Act;
• act, for or on behalf of any person or organization in connection with any specific proceeding or transaction or negotiation or  a  case  to which the Authority is a party and with respect to  which  the Chairperson or such Member had, before cessation of office, acted for or provided advice to, the Authority;

(C)        give advice to any person using information which was obtained in his capacity as the Chairperson or a Member and being unavailable to or not being able to be made available to the public;

(d)         enter into a contract  of  service  with, or  accept  an  appointment  to a board of directors of, or accept an offer of employment with, an entity with which he had direct and significant official  dealings  during  his term of office as such.

The Chairperson  and  Members  shall  not  communicate  or  reveal  to  any person  any matter which has been brought under his consideration or known  to  him while acting as such.

29. Officers and other employees of Authority.-(1) The Authority shall appoint such officers and employees, on regular basis or contract basis and appointinquiry officer or consultants un case to case basis on remunerations decided by the Authority as it considers necessary for the efficient discharge of functions of the Authority and such employees would discharge their functions under the general superintendence of the

(2) The salary and allowances payable to, and  the  other  terms  and conditions of service of, the officers  and  of the employees  of  the Authority shall be that as decided by the Authority at the time of appointment of the employee. The Authority shall make rules governing the service Of the regular employees of the Authority and  the  Federal  Government  shall  publish  these  rule°  in  the  official gazette as statutory rules.

30. Meetings of Authority.- (1) The Authority shall meet at such places and times, and shall follow such rules of procedure in regard to the transaction of its business, as may be specified by the regulations made by the

• If the Chairperson for any reason, is unable to attend a meting of the Authority, and other Member chosen fry the Members present amongst themselves at the meeting, shall preside at the
• All questions which come up before any  meeting  of  the  Authority  shall  be decided by a majority of votes by the  members  present  and  voting,  and  in  the event of an equality of votes,  the  Chairperson  or  in  his  absence, the  person presiding shall have a second or casting
• The questions which come up before the Authority shall be dealt with as expeditiously as possible and the Authority shall dispose of the same within a period of sixty days from the date of receipt of the application:

Provided that where any such application could not be disposed of within the said period of sixty days, the Authority shall record its reasons in writing for not disposing of the application within that period.

31. Vacancies etc. not to invalidate proceeding of Authority.-No act oi

Proceeding of the Authority shall be invalid merely by reason of —

• any vacancy in, or any  defect in  the constitution  of, the Authority; or

(b)                any defect in the appointment of a person acting as a Member of the Authority; or

(c)                any irregularity in the procedure of the Authority not affecting  the merits of the case.

32. Filing of complaints with the Authority  .-  (1)Any  aggrieved  person may file a complaint with the Authority, for any violation  or  contravention  of  the provisions of this Act or the rules and regulations made thereunder against any other Authority , Department , developer, allottee or real estate ’agent, as the case may

Explanation.— For the purpose of this sub-section “person” shall include the association of allottees or any voluntary consumer association registered under any law for the time being in force.

(2)         The form, manner and fees for filing complaint under sub-section (1) shall be such as may be specified by regulations.

33. Functions of Authority for Promotion of  real  estate  –  The  Authority shall in order to facilitate the growth and promotion of a healthy,  transparent, efficient and competitive real estate sector make recommendations to the Federal Government of the an authority  empowered  by law , as the case may  be, on,—

• Protection of interest of the allottees, developer and real estate agent;
• creation of a single window system for ensuring time bound project approvals and clearances for timely completion of the project;
• creation of a transparent and robust grievance redressal mechanism against acts of commission and commission of competent authorities and their officials;
• measures to encourage investment in the real estate sector including measures to increase financial assistance to affordable housing segment;
• measures to encourage construction of environmentally  sustainable and affordable housing, promoting standardization and use of appropriate construction materials, fixtures, fittings and construction techniques;
• measures to encourage grading of projects on various parameters of development including grading of developers;
• measures to facilitate amicable conciliation of disputes between the developers and the allottees through dispute settlement forums set up by the consumer or developer associations;

(h)         measures to facilitate digitization of hand records and system towards conclusive property titles with title guarantee;

(i)          to render advice to the Federal Government in matters relating to the development of real estate sector;

(j)          any   owner  issue   that  the  Authority   may think  necessary    for the promotion of the real estate sector.

 Advocacy and awareness measures.- (1) The Federal government may, while formulating a policy on real estate sector (including review of laws related to real estate sector or any other matter, make a reference to the Authority for its opinion on possible effect, of such policy or law on real estate sector and on the receipt of such a reference, the Authority shall within a period of sixty days of making such reference, give its opinion to the Federal Government which may thereafter take further action as it deems

(2)         ”the‘ opinion given by the Authority under sub-section (1) shall not be binding upon the Federal Government in formulating such policy of laws.

(3) the Authority shall take suitable measures for,the promotion of advocacy, creating awareness and imparting  training  about  laws  relating to real estate sector .and policies.

35. Functions of Authority.-The functions of the Authority shall include-—

• to register and regulate real estate projects and: r eat estate! agents registered under this Act;
• to publish and maintain a website of records, for public  viewing, of  all real estate projects for which registration has been given,  with  such details as may be prescribed, including information provide 4 in the application for which registration has been granted;
• to maintain a database, on its website, for public viewing, and enter  the names and photographs of developers as defaulters including the project details, registration for which has been revoked or have been penalized under this Act, with reasons therefor, for access to the general public;
• to maintain a database, on its website,

public Viewing, and enter the names and photographs of real estate agents ,who have applied

and registered under this Act, with such details as may be prescribed, including those whose registration has been rejected or revoked;

• to fix through regulations for each areas under its jurisdiction the standard fees to be levied on the allottees or the developer or the real estate agent, as the case may be;
• to ensure compliance of the obligations cast upon the developers, the allottees and the real estate agents under this Act and the rules andregulations made thereunder;
• to ensure compliance of its regulations or orders or directions made in exercise of its powers under this Act;
• to perform such other functions as may be entrusted to the Authority by the Federal Government as may be necessary to carry out the provisions of this

 Power  of  Authority  to  delegate  any  of  its  functions  to  another Authority or Department The Authority, may temporarily delegate  any  of  its function to another authority or  Department  on its  own or upon  an application  to  the Authority by another authority or Department.

37. Powers of Authority to call for information and conduct  inquiry  and make assessments.-(1) Where the Authority considers it expedient to do so, on a complaint or suo motu, relating to this Act or the rules or regulations made there under, it may, by order in writing and recording reasons .therefor call upon any developer or allottee or real estate agent, as the case may  be,  at  any  time  to furnish in writing such information or explanation relating to its affairs as  the  Authority may require and appoint one or more persons to make an  inquiry  in  relation to the affairs of any developer or allottee or  the real estate agent,  as the  case may

(2)  Notwithstanding  anything  contained  in  any   other   law   for   the  time being in force,  while  exercising  the  powers  under  sub-section  (1),  the  Authority shall have the same powers as are vested in a civil court under the Code of Civil Procedure, 1909 while trying a suit, in respect of the following matters, name y: —

(i)          the discovery and production  of  books  of  account  and  ‹other documents, at such place and at such time as may be specified by the Authority;

( ii)

Summoning and enforcing the attendance of person › and examining them on oath;

• issuing commissions for the examination of witnesses or documents;
• any ‹other matter which may be

38. Powers of Authority.-(1) The Authority shall have powers to impose penalty or interest, in regard to any contravention of obligations cast upon the developers, the allottees and the real estate agents, under this Act or the rules and the regulations made

• The Authority shall be guided by the principles of natural justice and, subject to. the other provisions of this Act and the rules made thereunder, the Authority shall ha e powers to regulate its own
• where an issue is raised relating to agreement, action, omission,

practice or procedure that—

(a)         has an  appreciable  prevention,  restriction  or  distortion  of  competition in connection with the development of a real estate project; or

(b)         has effect of market power of  monopoly  situation  being  abused for affecting interest of allottees adversely,  then  the  Authority, may take suo motu, make reference in respect of such issue to the Competition Commission of Pakistan or the appellate tribunal under this Act .

• All proceedings before the Authority shall be deemed to be judicial proceedings within the meaning of Se4ion 193 and 226 of the Pakistan Penal Code (Act XLV of 1860) and the Authority shall be deemed to be court for the purposes of Section 480 and 482 of the Code of criminal Procedure 1898 (Act V of 1898 ). No court other than Authority shall have or exercise any jurisdiction with respect to any matter to which the jurisdiction of Authority extends under this
• A person against whom a complaint has been made or any contravention of this Act has come to the knowledge of the Authority by any means shall be proceeded against by the Authority. A complainant or a person against whom a complaint has been made or who has purportedly committed any contravention of this Act can be represented by his duly appointed counsel or representative. The Authority can  summon   the  applicant   or  appellant  or complainant or thy  person  against  whom  the  complaint  has beefy directed to  appear in person before the

39. Powers to issue interim orders.- Where during an inquiry, the Authority is satisfied that an act in contravention of this Act, or the rules and regulations made thereunder, has been committed and continues to be committed or that such act is about to be committed, the Authority  may,  by  order,  restrain  any  developer, allottee or real estate agent from carrying on such act until the conclusion of such inquiry or until further orders, without giving notice to  such  party,  where  the  Authority deems it
40. Powers of Authority to issue directions.- The Authority may, for  the purpose of discharging its functions under the provisions of this Act or rules or regulations made thereunder, issue such directions from time to time, to the developers or allottees or real estate agents, as the case may be,  as  it  may  consider

(2) All directions of the Authority shall be binding on all Law enforcement agencies in Islamabad and the ”District Administration which  shall act in assistance  of the Authority.

41. Orders of recovery of interest or penalty or compensation and enforcement of Order – (1) If a developer or an allottee  or  a  real  estate agent, as the case may be, fails to pay any interest or penalty or compensation imposed on him, by the inquiry officer or the Regulatory Authority or the Appellate Authority, as the case may be, under this Act or the rules and regulations made thereunder, it shall be recoverable from such developer or alIottee or real estate agent, in such manner as may be prescribed as an arrears of land revenue.

• If any inquiry officer or the Regulatory Authority or the Appellate Tribunal, as the case may be, issues any order or directs any person to do any act, or refrain from doing any act, which it is empowered to do under  this  Act  or the  rules or regulations made thereunder, then in case of failure by any person to comply with such order or direction, the same shall be enforced, through the Law enforcement agencies in Islamabad  and  the District  Administration  which shall act in assistance of the
• f any inquiry officer or the Regulatory Authority or the Appellate Tribunal passes a penalty

42. Rectification and review of orders,-The Authority may,  at  any time  within a period of two years from the date of the order made under this Act, with a view rectifying any mistake apparent from the record, amend any order passed by I, and shall make such amendment, if the mistake is brought to its notice by  the parties:

Provided that no such amendment shall be made in respect of any order against which an appeal has been preferred under this Act:

CHAPTER VI

OFFENCES, PENALTIES AND ADJUDICATION

 Punishment for  non-registration  by  a  Developer  ,-  ( L)  If   any  developer is working without having valid registration with the  Authority  or  Allen  his registration has been revoked by the Authority, his  such  working  shall  be considered an offence punishable with a penalty which may extend up to ten percent of the estimated cost of the real estate project as determined by the Authority and the Authority may sentence such developer to six months irre

• If any developer does not comply with his duties ‹and undertakings to the alIottee and the authority and does not comply with the orders, decisions or directions issued by the Authority, he shall be punishable with imprisonment for a term which may extend up to three years or with fine which may extend up to a further ten percent of the estimated cost of the real estate project, or with both andshall not remain eligible for registration as a developer or work as  developer  within the Jurisdiction of Islamabad Capital territory,

44. Penalty for providing false information.-If any developer provides false information or contravenes the provisions of section 4, he shall be Iiable to a penalty which may extend up to five percent of the estimated cost of the rest estate project, as determined by the

45. Punishment  for  non-registration  by  a  Real  Estate  Agent  ,-  (1)  If  any Real Estate Agent is working without having valid registration with the Authority or when his registration has been revoked by the Authority , his such working shall be considered an offence punishable with a penalty as may be determined and imposed by the Authority and the Authority may sentence such Real Estate Agent to six months imprisonment and he shall not remain eligible  for  registration  as  a Real Estate Agent or work as Real Estate Agent within the Jurisdiction of Islamabad Capital territory.

48. Penalty for failure to comply with orders  of  Authority  by -If any developer, who fails to comply with, or contravenes any of the orders  or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of the real estate project as determined by the Authority.
49. Penalty for failure to  comply  with  orders  of  Authority  by  allottee.-  If any allottee, who  fails  to comply  with, or contravenes  any of the orders,  decisions or directions of the Authority he shall be liable to a penalty for  the period  during  which such default continues, which may cumulatively extend up to five percent  of  the plot, apartment or building cost, as the case may be, as determined by the
50. Penalties of violation of provisions of this Act by a Developer or any Office Bearers of any other Authority or  Department  or  Company  or Developer,    by  Developers  and  Companies.-  (1)   Where  any  contravention of this Act or any offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, or was responsible to the company for the conduct of the business of the company, as well  as the company,  shall be deemed to be guilty  of the offence and shall be liable to   be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section, shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge or that he had exercised all  due  diligence  to prevent the commission of such offence.

• Notwithstanding anything  contained  in  sub-section  (1),  ‘where   an offence under this Act has been committed by a company and it is proved that the offence  has been committed  with the consent  or connivance  of, ‹›r  is attributable to any negligence on the part of any director or  employee  of  the  company,  such director or employee shall also be deemed to be guilty of that offence and shall but Iiable to be proceeded against and punished

Explanation.— For the purpose of this section,—

• “company” means any body corporate and includes a firm, or other association of individuals; and
• “‹Director” in relation to a firm, means a partner in the
  • Where any contravention of this Act has been committed  by  a Developer, a local authority , a local Government  or  a  body  corporate  or  institution and it appears from the relevant documents that such offence has been committed with the consent or connivance of or Is attributed to any negligence on the part of any director, partner, manager, secretary or other officer of the body corporate for institution such director, partner, manager, secretary or other officer If the body corporate or institution, shall be deemed guilty of such contravention  along  with  the body corporate  or institution  and  shall be an  offence  punishable  by  the Authority by  sentence of imprisonment for a term which may  extend  to one year but shall not be less than six months , or with fine which may extend to Five Hundred thousand Rupees,

Provided that in the case of a company as defined under the Companies Act, 2017 (XIX of 2017), only its Chief Executive shall be liable under this sect icon.

Explanation.- for the  purposes  of  this  section,  ’body  corporate  or institution” includes a firm, association of persons and a society registered under the Societies Registration Act, 1860 (XXI of 1860) or under the  co-operative  Societies Act, 1925 (VII of 1925).

Where any contravention of this Act: has been ‘committed by any Government Agency, any local authority or local Council and it appears from the relevant documents that such contravention  has been  committed  with I he consent or connivance of or is attributable to any negligence on the part of the Head or any other officer of the Government Agency, local authority oi local Council such Head

or other officer it shall be an offence punishable by the Authority by a ,sentence of imprisonment for a term which  may  extend  to  one  year  but  shall  not  be  less  than six months , or with fine which may extend to Five Hundred Thousand Rupees.

compounding  of  Offences.-Notwithstanding  anything  contained  in  the Code of Criminal Procedure, if any person Is punished‘ with  imprisonment  under  this Act,  the punishment  may, either before or after  the institution of  the  prosecution, be compounded by the court on such terms and conditions and on payment of such sums as may be prescribed:

Provided that the sum prescribed shall not, in any  case,  exceed  the  maximum amount of the fine which may be imposed  for  the  offence  so  compounded.

CHAPTER VII

TLIE REAL ESTATE APPELLATE TRIBUNAL

 Establishment of the Real Estate Appellate Tribunal.-(1) The Federal Government shall, within a period of three months from the  date of coming  into force of this Act, by notification, establish an Appellate Tribunal to be known as the

— Federal Real Estate Appellate Tribunal.

2) The Federal Government may, if it deems necessary, establish one or more benches of the Appellate Tribunal, for various jurisdictions, as the case may be;

Provided that, until the establishment of an Appellate Tribunal under this section, the Federal Government shall designate, by order, any Appellate Tribunal Functioning under any law  for  the time being  in force,  to be the Appellate  Tribunal to hear appeals under the Act.

52. Composition of Appellate Tribunal.-The each bench: of the Appellate Tribunal shall consist of three
53. Appointment and Qualification of Chairperson and members  of Appellate Tribunal.- (1) A person shall not be qualified for appointment as the Chairperson unless he is or has been a Judge of a High Court and  shall  be appointed by the Ministry of Law, Government of Pakistan;

• in the case of other members, a person shall not be qualified for appointment if he has not held the post of Joint Secretary to the Government of Pakistan or an equivalent post in the Federal Government or an equivalent post in  the Provincial Government or a statutory autonomous
• he Chairperson or a Member of the Tribunal, as the case* may be, shall not be beIow the age of sixty
• The Chairperson of the Appellate Tribunal shall in appointed by the Ministry of” Law,  Government  of  Pakistan  in  consultation  with  the  Mayor  of Islamabad  which shall not be binding  on  the  Ministry  of  Law,  Government  of Pakistan in this
• The other members of the Appellate Tribunal shall be appointed by  the Ministry of Interior, Government of Pakistan on the  recommendations  of  a  Selection Committee consisting of the Mayor of Islamabad, the Chairman  CDA  and Joint Secretary of the Ministry of Interior and Joint Secretary of the Ministry of
• The Chairperson and the members of the Appellate Tribunal shall be notified in the official Gazette by the Ministry of Interior, Government of P

53.             Term of Office of Chairperson and Members.- (1) The Chairperson of the Appellate Tribunal or a Member of the Appellate Tribunal shall hold office, as such for a term not exceeding five years from the date on which be enters Upon his office, but shall not be eligible for re-appointment:

Provided   that  the  Chairperson   or  member  of  the. Tribunal, he  shall not hold

office after be teas attained the age of sixty-five years:

• Before notifying any person as Chairperson or Member, the! Ministry of Interior, Government of Pakistan shall satisfy itself that the person does not have any such financial or other interest, as is likely  to affect  prejudicially his functions  as such

55. Salary and allowances payable to Chairperson and Members of the Appellate Tribunal.- The salary and allowances payable to, and the other terms and conditions of service of, the Chairperson and other  Members  shall be such .as may be prescribed by the Federal Government and shall not be varied to their disadvantage during their tenure.
56. Resignation and Removal of Chairperson and  Members  of  the Appellate Tribunal.-  Notwithstanding  anything  contained  in  .section  52  and  53  , the Chairperson or a Member, as the case may be, may: —

(a}                relinquish his office by giving in writing to the Federal Government a notice of not less than three months;

{b)        be removed from his office in accordance with  the  provisions  of section 57.

56. Filling of vacancies.- A vacancy caused to the office of the  Chairperson  or  any other Member, as the case may be, shall be filled-up by the relevant authorities and the process within a period of one month from the date on which such vacancy occurs.
57. Removal of Chairperson and Members from office in certain circumstances.- ( 1) The Federal Government may, in consultation with the Mayor of Islamabad, remove from office of the Chairperson or  any  member  of  the  Appellate Tribunal, who—

• has been adjudged as an insolvent; or
• has been convicted of an offence which, in the opinion of the Federal Government involves moral turpitude; or
• has become physicaIIy or mentally incapable; or
• has acquired such financial or other interest as” is likely to affect prejudicially his functions; or
• has so abused his position as to render his continuance in office prejudicial to the public
• The Chairperson or any Member shall not be removed from his office except by an order made by the Federal Government after an inquiry made by the Mayor of Islamabad in which such Chairperson or Judicial member or Technical ur Administrative Member has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those
• The Federal Government may suspend from the office of the Chairperson or h1ember in respect of whom a reference of conducting an inquiry has been made to the Mayor of Islamabad under sub-section (2), untiI the Federal Government passes an order on receipt of the report of inquiry made by the Mayor of Islamabad on such
• The Federal Government may, by rules, regulate the procedure for – inquiry referred to in sub-section (2).

58. Restriction on Chairperson or Members of the Appellate Tribunal on employment (1} The Chairperson or Member, ceasing to hold Office as such shall not: —

(a)   Accept any employment in, or connected with, It e management or administration of, any person or” organization which has  been associated with any work under this Act, from the date oi which he

ceases to hold office:

Provided that nothing contained  in  this  clause  shall  apply  to any employment under  the  Federal  Government or a local  authority or in any  statutory authority or any corporation established  by  or under any Federal or provincial Act or a Government Company, whose majority shares are held by the Federal or provincial Government., which is not a developer as per the provisions of this Act;

• act, for or on behalf of any person or organization in connection with any specific proceeding or transaction or negotiation or a case to which the Authority is a party and with respect to which the Chairperson or Judicial Member or Technical or  Administrative Member had, before cessation of office, acted for or provided advice to, the Authority;
• give advice to any person using information which was obt.zin‹•d in h iscapacity as the Chairperson or Member  and  being  unavailable  to  or not being able to be made available to the public;
• enter into a contract of service with, or accept an appointment to a board of directors of, or accept an offer of employment with, an entity with which he had direct and significant official dealings during  his term of office as

(2)      The Chairperson or Judicial Member or Technical or Administrate Member shall not communicate or reveal to any person any matter which has been brought under his consideration or known to him while acting as such.

59. Transfer of Appeals.- (1) All cases regarding real estate  sector pending in any court of law, shall be transferred to the AppeII6te Tribunal designated to hear appeals and shall be heard the stage such appeal is transferred.

• Any person aggrieved by any direction or decision. or order made by the Authority under this Act may prefer an appeal before the Appellate Tribunal having jurisdiction Over the               ‘
• Where a developer files an appeal with the Appellate Tribunal against a case which had been decided in favour of an allottee by any forum or the Authority, it shall not be entertained, without the developer first having deposited with the Appellate Tribunal at least thirty per cent. of the penalty, or such higher percentage as may be determined by the Appellate Tribunal, or the total amount to be paid to the allottee including interest and compensation imposed  on him, if any,  or with both, as the case may be, before the said appeal is heard.

Explanation.— For the purpose of this sub-section ”person” shall Include the association of allottees or any voluntary consumer association registered under any law for the time being in force.

60. Application for settlement of disputes and appeals to appellate Tribunal.-(I) The Federal Government or an authority empowered by law or any person aggrieved by any direction or order or decision of the Authority or the inquiry officer may prefer an appeal to the Appellate

• Every appeal made under sub-section ( 1)  shall  be  preferred  within  a period of sixty days  from  the  date  on  which  a  copy  of  the  direction  or  order  or  decision made by the Authority or the Inquiry officer is received by the Federal Government or the an authority empowered by law or the aggrieved person and it  shall be in such form and accompanied by such fee, as may be prescribed:

Provided   that   the   Appellate   Tribunal   may   entertain   any   appeal after the

Expiry of sixty days if it is satisfied that there was sufficient cause for not filling it Within that period.

• On receipt of  an appeal  under  sub-section  (1), the Appellate Tribunal
•  , may after giving the parties anopportunity of being heard, pass such orders,

including interim orders, as it thinks fit.

• The Appellate Tribunal shall send a copy of every order made by it to the parties and to the Authority or the inquiry officer, as the case may be

(5)    The appeal preferred under sub-section (1), shall be dealt with by it as expeditiously as possible and endeavor shall be made by it to dispose of the appeal within a period of sixty days from the date of receipt of appeal:

Provided that where any such appeal could not be dispose d of within the said period of sixty days, the Appellate Tribunal shall record its reason in writing for not disposing of the appeal within that period.

(6)      The Appellate  Tribunal  may,  for  the  purpose  of examining  the legality or propriety or correctness of any order or decision of the Authority  or the  inquiry officer, on its own motion or otherwise, call for the  records  relevant  to  deposing  of such appeal and make such orders as it thinks fit.

61. Appraisal and  Inquiry  Officer  of  the  Appellate  Tribunal  or   the Authority.- (1) for the  purpose  of  assessing  compensation  and  to  conduct  an inquiry and  to  submit  recommendations  to  it,  the  Appellate  Tribunal  or  the Authority, as the case may be , shall appoint a person on case to case basis  where such person has been a Judge in any  court of law  in Pakistan.  The Inquiry Officer shall give any person charged or concerned with the matter a reasonable opportunity of being heard. The Inquiry officer shall have the responsibility  and exclusive jurisdiction to,-

• to conduct an inquiry and to submit recommendations to it , the Appellate Tribunal or the Authority on any charge against any person referred to it by  the  Appellate Tribunal  or the Authority  us the case may be.
• Make an assessment on any matter of compensation or any  evaluation  of worth of a real estate or any  claim  in  any  matter  of  a  real  Estate and submit recommendations to it , the Appellate  Tribunal  or  the Authority, as the case may he after hearing

(c)       to conduct an investigation on  any  allegation  of  financial  or administrative irregularities against the chairperson or any member or any officer or official of the Authority and present his recommendations to his appointing authority the Appellate Tribunal or the Authority as the case may be.

(2)         The inquiry officer shall be bound by the procedure laid down by the Code of Civil Procedure, 1908 and by the rules of evidence contained in the Qanoon-e-Shahadat, 1984.

(3)         The inquiry officer shall have, for the purpose of discharging his functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—

• summoning and    enforcing     the     attendance      of    any    person     and examining him on oath;
• requiring the discovery and production of documents;
• receiving evidence on affidavits;
• issuing commissions for the examinations of witnesses or documents;
• reviewing its decisions;
• dismissing an application for default or directing it ex parte; and
• any other matter which may be

(4)         The inquiry officer shall be assisted by the local law enforcement agencies in the discharge of his duties.

• The application  tor  adjudging  compensation under sub-section        1), shall be dealt with by the inquiry officer as expeditiously as possible and dispose of the same within a period of sixty days from the date of receipt of the application: Provided that where any such application could not be disposed of within the said period of sixty days, the inquiry officer shall record his reasons in writing for not disposing of the application within that

 While holding an inquiry the inquiry officer shall have  power  to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence  or to produce  any  document  which  in the opinion of the inquiry officer, may be  useful  for  or  relevant  to  the  subject  matter of the inquiry and if, on such inquiry, he  is  satisfied  that  the  person  has failed to comply  with  the  provisions  of  any  of  the  sections  specified  in sub-section (1), he may direct to pay such compensation  or interest,  as  the case  may be, as he thinks fit in accordance with the provisions of any of those

62. Factors to be taken into account by  inquiry  –  While  adjudging the quantum oi’ compensation or interest, as the case may be, under section  61 , the inquiry officer shall have due regard to the following factors, namely: —

• the amount of disproportionate gain or unfair ac vantage, wherever quantifiable, made as a result of the default;

(h)         the amount of loss caused as a result of the default;

• the repetitive nature of the default;
• such other factors which the inquiry officer considers necessity to the case in furtherance of

63. Officers and other employees of Appellate Tribunal.-(1) The Federal Government shall provide the Appellate Tribunal with such officers and employs as it may deem
    • The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of its chairporsion of the Appellate

• The salary and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Appellate Tribunal shall be such as may be

64. Powers of Tribunal,-(1) The Appellate Tribunal shall be  bound  by  IN e procedure laid 4own by the Code of Civil Procedure, 1908.

• The Appellate Tribunal shall also be bound fry the rules of evidence contained in the Qanoon-e-Shahadat,
• The Appellate Tribunal shall have, for the purpose of discharging its functions under this Act, the same powers as are vested in  a  civil  court  under  the Code of Civil Procedure, 1908 in respect of the following matters, namely : —
• summoning and    enforcing     the     attendance      of    any    person     arid examining him on oath;
• requiring the discovery and production of documents;
• receiving evidence on affidavits;
• issuing commissions for the examination s of witnesses or documents;
• reviewing its decisions;

(I}          dismissing an application for default or directing it ex parte; and

(g)         any other matter which may be prescribed.

(4} Act proceedings before the Appellate Tribunal shall be deemed to  be  judicial proceedings within the meaning of Section 193 and  228  of  the  Pakistan Penal Code ( Act XLV of 1860 ) and the Appellate Tribunal shall be deemed to be a court for  the  purposes  of  Section  480  and  482  of  the  Code  of  criminal Procedure 1898 (Act  V of 1898). No court other than Appellate Tribunal shall have   or exercise any jurisdiction with respect to any matter to which the jurisdiction of Appellate Tribunal extends under this Act.

65. Administrative Powers of the Chairman of Appellate Tribunal.-The Chairperson shall have powers of general superintendence and direction in the conduct of the affairs of Appellate Tribunal and he shall in  addition  to presiding over the meetings of the Appellate Tribunal exercise and discharge such administrativee powers and functions of the Appellate Tribunal as may be
66. Vacancies etc. not to invalidate proceeding of Appellate -No

Act or proceeding of the Appellate Tribunal shall be invalid merely by reason of—

• any vacancy in, or any defect in the constitution of, the Appellate Tribunal, or
• any defect in the appointment of a person acting as a Member of the Appellate Tribunal; or
• any  irregularity       in  the  procedure       of  the    Appellate  Tribunal       not affecting the merits of the

68. Right to legal  -The  applicant  or  appellant  or  complainant may either appear in person or authorize one or more chartered accountants or company secretaries or cost  accountants  or legal practitioners  or any of its officers to present his or its case before  the Appellate Tribunal  or  the Regulatory  Authority or the inquiry officer, as the case may be. The Appellate Tribunal .can summons the applicant or appellant or complainant or the person against whom the complaint has been directed to appear in person before the Appellate Tribunal or the Regulatory Authority or the inquiry officer, as the case may be.
69. Orders passed by the Appellate Tribunal  to  be  executable  as  a – (1) livery order made by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of civil court, and for this purpose, the AppelIate  tribunal shall have all the powers of a civil court.

(2) Notwithstanding anything contained in sub-section (1),  the’  Appellate Tribunal may transmit any order made by it  to a civil court having local  jurisdiction and such civil court shall execute the order as if it were a  decree me de by  the  court.

69. Penalty for failure to comply with orders of  Appellate  tribunal  by Developer.-If any developer, who fails to comply with, or contravene a by of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to three years or  with fine  for every day during which such default continues, which may cumulatively exten‹1 up to ten percent of I:he estimated cost of the real estate project, or with
70. Penalty for  failure  to   comply   with   orders   of   Appellate   Tribunal   by Real Estate Agent.- If any real estate agent, who fails to combat y with,  or contravenes any of the orders or directions of the Authority, he shall be liable to a penalty for every day during which such default continues, which may cumulatively extend up to five per cent., of the estimated cost of plot, apartment  or  building,  as the case may be, of the real estate project, for which the sale or purchase has been facilitated and as determined by the
71. Penalty for  failure  to  comply   with  orders  of   Appellate Tribunal by Real Estate Agent.- If any real estate agent, who fails  to  comply  with,  or contravenes any of the orders, decisions or directions of the Appellate Tribunal, he shall be punishable with imprisonment for a term which may extend up to one year  or with fine for every day during which such default continues, ’which may cumulatively extend up to ten percent of the estimated cost of plot, apartment or building, as the case may be, of the real estate project, for which the   sale  or purchase has been facilitated, or with
72. Penalty for failure to comply with orders of AppellateTribunal by -If any allottee, who fails to comply with, or contrives any of the orders or directions  of the  Appellate  Tribunal,  as the  case  may  be,  he  shall be punishable with imprisonment for a term which may extend up to one year or with fine for  every day during which such default continues, which may cumulatively extend up

to ten percent  of  the plot, apartment  or building  cost,  as the  case  ma y be, or with

both.

73. Appeal to High Court.- (1) Any  person  aggrieved  by  any  decision  or  order of the Appellate Tribunal, may, file an appeal to the Islamabad High Court, within a period of sixty days from the date of communication of the decision or order of the Appellate Tribunal, to him, on any one or more of the grounds specified  in section  100 of the Code of Civil Procedure, 1908:

Provided that the Islamabad High Court may entertain the appeal after the expiry of the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

CHAPTER VIII

FINANCE, ACCOUNYS, AUDITS AND REPORTS

75. Grants and Loans by Federal Government.-The Federal  Government may, after due appropriation made by the Parliament in this behalf, make to the Authority any grants and loans of such sums of money as seed money that Government may consider necessary and release it to the senior Administration Officer of the Authority to spend it on  establishment  of the  office of the  Authority with the assistance of the Ministry of Interior, Government of Pakistan. The Authority, in time, shall generate its own sources of funding for its function as
76. Constitution of Fund.-(1) The Federal Government shall constitute a fund to be called the ’Real Estate Regulatory Fund’ and there shall be credited thereto,—

• all Government grants received by the Authority;
• the fees received under this Act;
• the interest: accrued on the amounts referred to in clauses (a) to (b).
• The Fund shall be spent on —
• the salaries and allowances payable to the Chairperson and other Members, the  inquiry  officer  and  the  administrative  expenses  including the salaries and allowances payable to the officers and other employees of the Authority and the Appellate Tribunal;
• the other expenses of the Authority in connection with its establishment and the discharge of its functions and for the purposes of this
• The Fund shall be administered by a committee of such Members of the Authority as may be determined by the Chairperson and before appointment of any Members of the Authority or Its Chairperson, by the Administration  officer of  the
• The committee appointed ”under sub-section (3) Shall  spend  monies out of the  Fur a  for  carrying  out  the  objects  for  which  the  Fund  has  been constitute

77. Crediting sums realized by way of penalties to  the  Fund.–  All  sums  realized by way of penalties  imposed  by  the  Appellate  Tribunal  or  the  Authority shall be credited to the Federal treasury.
78. Budget, accounts and  -(1}  The  Authority  shall  prepare  e  budget, maintain proper accounts and other relevant  records  and  prepare  an  annual statement of accounts in such  form  as  may  be  prescribed  by  the  Federal Government in consultation with the Auditor General of Pakistan.

• The accounts of the Authority shall be audited by the Audito general of Pakistan at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the a Auditor General of
• The Auditor-General and any person appointed by him in connection wit the audit elf the accounts of the Authority under this Act  shall have same rights and privileges and authority in connection with such audit as the Auditor General generally has in connection with the audit of Government accounts and, in particular shall have the right to demand and production of’ books, account, connected vouchers and other documents and papers, and to inspect any of the offices of the
• The accounts of the Authority, as certified by the Auditor  General  cal Pakistan or any other  person  appointed  by  him  in  this  behalf,  together  with  the  audit report thereon shall be forwarded annually to the Federal Government by the Authority and the Federal Government shall cause the audit report to be laid, as  soon as may be after it is received, before each House of Parliament (the Federal Legislature).

78.     Annual report.- (1) The Authority shall prepare once in every year, in such form and at such time as may be prescribed by the Federal Government,—

• a description of all the activities of the  Authority  for  the  previous  year;
• the Annual  accounts  for the previous year; and
• the programmes of work for the coming

(2)        A copy of the report received under sub-section (1) shall be laid, as soon as may be after It is received, before the Parliament.

CHAPTER IX

MISCELLANEOUS

80. Bar of  -No  civil  court  shall  have  jurisdiction  to  entertain  any suit or proceeding in respect of any matter which  the Authority  or the Inquiry officer  or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.
81. -The Authority may, by generalor  special  order  in  writing, delegate to any  other  Authority  or Department  or any member  of Authority,  officer of the Authority or any other person subject to such conditions, if any, as may De specified in  the  order,  such  of  its  powers  and  functions  under  this  Act  (except  the power to make regulations under this Act, as it may deem necessary.

B1.      Power    to    supersede     Authority.-(1)       If,     at    any    time,     the    Federal Government Ts of the opinion, —

• that, on account of circumstances beyond  the control of the Authority, it is unable to discharge the functions or perform  the duties imposed  on it by or under the provisions of this Act; or

(b)     that the Authority has persistently defaulted in complying with any direction given by the Federal Government under this Act or in the discharge of the functions or performance of the duties Imposed on it by or under the provisions of this Act .and as a result of such default the financial position of the Authority or the administration of the Authority has suffered; or

• that circumstances exist which render it necessary in  the  ,public interest so to do, the Federal Government may, by notification, supersede the Authority for such period, not exceeding six months as, as may be specified in the notification and appoint a person Inc  may direct him to exercise powers and discharge function!: under this Act:

Provided that before issuing any such notification, the Federal Government shall give a reasonable opportunity to the Authority to the make representations against the proposed supersession and shall consider the representations,if any of the Authority.

• Upon the publication of a notification under sub-section (1) superseding the Authority,

{a)       the   Chairperson   and   other  Members   shall,   as   from  the

date of supersession, vacate their offices as such ;

• all the powers, functions and duties which may, by Or under the provisions of this Act, be exercised or discharged L y or on be a all of the Authority shall, until the Authority is reconstitution under sub-section (3), be exercised and discharged by the under on or persons referred to in sub-section (1); and
• all properties owned or controlled by the Authority shall until the Authority is reconstituted under sub-section (3), vast in the  federal
• On or before the expiration of the period of supersession specified in the notification issued under sub-section (1), the Federal Government. Shall reconstitute the Authority by a fresh appointment of its chairperson .and other members and in such case any person who had vacated his office render clause (a) of sub-section {2} shall not be deemed to be disqualified for re-appointment.

{4) The Federal Government shall cause a copy of the notification  issued under sub-section (1) and a Cult report of any action taken under this section the circumstances leading to such action to be laid before each House of  Parliament.

82. Power to issue Directions to Authority and obtain  reports  and -(1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of its powers and in performance of its functions under this Act, be bound by such directions on questions of policy, as the Federal Government  may  give in writing to it from time to time;

Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub- section.

{2) If any dispute arises between the Ministry and the Authority as to whether a question is or is not a question of policy, the decision of the Federal Government thereon shall be final.

(3) The Authority shah furnish to the Ministry such returns or other informationon with respect to its activities as the Ministry may, from time to  time, require.

83. Powers to make rules.-(1) The Federal Government, within a period of six months of the commencement of this Act, by  notification,  make  rules  for carrying out the provisions of this Act in particular, and without prejudice te  the generality  of the foregoing power and publish them in the official  Gazette,  such  rules  may  provide for all or any of the following matters, namely: —

• standard fees to be levied on the developer, the allottees or the real estate agent for registration and renewal of registration with the Authority under this Act;
• the maintenance and preservation of books of account, records and documents of the Authority;

the administrative powers of the Chairperson of the Authority and the salaries and allowances payable to, and the other terms and conditions of the Chairperson and members of the ”Authority

• the manner of inquiry by the Inquiry Officer , authority and appellate

Authority;

• the additional functions which may be performed by the Authority;

(f)     the manner of implementation of the order, direction  or decisions of the inquiry officer, the Authority or the Appellate Tribunal under this Act,:

1. g) the salaries and allowances payable to, and the other terms and

conditions of service of, the Chairperson and other Member of the Authority and Appellate Tribunal;

• the procedure for inquiry of the charges of administrative or financial irregularities against the Chairperson or Member of the Tribunal
• the powers of the Chairperson of the Appellate Tribunal;
• the form to be specified in which the Authority shall prepare a budget, maintain proper accounts and other .relevant records and prepare an annual statement of accounts under sub-section (1) of section 77;
• the form in which and time at which the Authority shall prepare  an annual report under sub-section (1) of section -78;
• any other matter which is to be, or may be, prescribed; and
• any other powers of the Authority or the Appellate

(2)   The Authority,  within a  period of six  months  of  the  commencement of  this Act, by notification, make rules for carrying out the provisions of this Act  in particular, and  without  prejudice  to  the  generality  of  the  forgoing  power  and publish them in the official Gazette  by its  own authority,  such  rules may provide for all or any of the following matters, namely:—

(a)         Application form and manner of making application  and fee  and information and documents with the application by the Developer to Authority for his registration;

(b)         the  discharge  of  other  functions  fry  the  real  estate  agent  under clause (e) of section 10;

• the rate of interest payable under any provision of this Act;
• the administrative powers of the officers and other employees of the Authority and the salaries and allowances payable thereto, and the other terms and conditions of their service;
• the administrative powers of the officers and other employees of the Appellate Tribunal and the salaries and allowances payable thereto, and the other terms and conditions of service of, the officers and employees of the Appellate Tribunal;
• the details to be published on the website by the Authority and the developer;
• the manner of recovery of interest, penalty and compensation  from  the developer; and
• any other matter which Is to be, or may be,

B4. Powers to make regulations  of. the  authority.-(1)  The  Authority  shall, within a period of three months of its establishment, by notification, make regulations, consistent with this Act and the rules made thereunder to carry out the purposes of this Act

(2) In particular, and without prejudice  to the generality  of the  foregoing power, such regulations may provide for  all  or any  of  the  following  matters, name\y: —

• the form and manner of making application and fee payable herewith under sub-section (1) of section 4;
• the form of application and the fees  for  extension  of  registration under section 6;
• such other information and documents required under clause (f) of sub-section (1) of section 11;
• Display of sanctioned plans, layout plans along with specifications, approved by the an authority empowered by law, for display under clause (a) of sub-section (3) of section 11;
• preparation and maintenance of other details under sub-section;6) of section 11;
• time, places and the procedure In regard to transaction of business at. toe meetings of the Authority under sub-Section (1) C f section 30;
• the form, manner and fees for filing a complaint under sub-section (2) of section 32;
• any other matter which is required to be, or may be, specified by regulation or  in  respect      of                     which                    provision     is                 to be made by

1. Members etc. to be public servants.-The Chairperson, members and other officers and employees of the Authority, and the Appellate Tribunal and the inquiry officer shall be deemed to be public servants within the meaning of section 21 of the Pakistan Penal Code.
2. Act to have overriding effect.-The provisions of this Act shall have an overriding effect, notwithstanding anything inconsistent therewith containing in any other law for the time being In force.
3. Protection of actions taken” in good faith.-  No suit, prosecution  or other legal proceedings shall lie against the Federal Government of the Authorize or any officer of the Federal Government or any member, officer or other employ’s of the Authority for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder as determined by the Appellate Tribunal under this Act.
4. Power to remove difficulties.-(1) If any  difficulty  arises  in giving  effect  to the provisions of this Act, the Federal Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions  of this  Act as may appear to be necessary for removing the difficulty.

Provider:1 that no order shall be made under this  section  after  the expiry  of  two years front the date of the commencement of this Act.

(2)         I very order made under this section shall be laid, as soon as may be, before each House of the Parliament.

STATEMENT OF OBJECTIVE AND REASON

Keeping in view the consistent  varying  trends  and  fluctuations  in  the  real estate market, there  is  a  dire  need  to  establish  a  Real  Estate  Regulatory  Authority in order to regulate and promote the real  estate  sector.  It  who  also  protect  the interest of consumers and ensure smooth sale of plots and real estate projects in an efficient and transparent manner In addition, it will give the consumers a speedy dispute redressal of   their  complaints  through   establishing  an  adjudication mechanism  through the  Authority  and  provide  an  Appellate  Tribunal  for   hearing appeals against the orders or directions of RERA (Real Estate Regulatory Authority).

Zahid Bin Sadiq

0300-8402220