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, of any other person to him and receives remuneration or fees or any other charges for his services whether as commission Approximately 2%.

A
Bill
to establish the Real Estate Regulatory Authority for regulation and
promotion of the real estate sector and for matters connected therewith
WHEREAS it is expedient to establish the Real Estate Regulatory
Authority for regulation and promotion of the real estate sector and to ensure
sale of plot, apartment or building, as the case may be, or sale of real estate
project, in an efficient and transparent manner and to protect the interest of
consumers in the real estate sector and to establish an adjudicating mechanism
for speedy dispute redressal and also to establish the Appellate Tribunal to hear
appeals from the decisions, directions or orders of the Real Estate Regulatory
Authority and the adjudicating officer and for matters connected therewith or
incidental thereto;
It is hereby enacted as follows:-
CHAPTER I
PRELIMINA
RY
1. Short title, extent and commencement.- (1) This Act may be called
the Real Estate (Regulation and Development) Act, 2017.
(2) It extends to the whole of Pakistan.
(3) It shall come into force on such date as the Federal Government
may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of
this Act and any reference in any such provision to the commencement of this
Act shall be construed as a reference to the coming into force of that provision.
2. Definitions.- (1) In this Act, unless the context otherwise requires,—
(a) “adjudicating officer” means the adjudicating officer appointed
under sub-section (1) of section 71;
(b) “advertisement” means any document described or issued as
advertisement through any medium and includes any notice,
circular or other documents or publicity in any form, informing
persons about a 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 to make advances or
deposits for such purposes;
2
(c) “agreement for sale” means an agreement entered into between the
promoter and the allottee;
(d) “allottee” in relation to a real estate project, means the person to
whom a plot, apartment or building, as the case may be, has been
allotted, sold (whether as freehold or leasehold) or otherwise
transferred by the promoter, and includes the person who
subsequently acquires the said allotment through sale, transfer or
otherwise but does not include a person to whom such plot, apartment
or building, as the case may be, is given on rent;
(e) “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;
(f) “Appellate Tribunal” means the Real Estate Appellate Tribunal
established under section 43;
(g) “appropriate Government” means in respect of matters relating to,—
(i) Federal territory, the Federal Government;
(ii) the Province, the Provincial Government;
(h) “architect” means a person registered as an architect under the
provisions of the Pakistan Council of Architects and Town Planners
Act, 1983;
(i) “Authority” means the Real Estate Regulatory Authority established
under sub-section (1) of section 20;
3
(j) “building” includes any structure or erection or part of a structure 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;
(k) “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 or verandah area and exclusive open terrace
area, but includes the area covered by the internal partition walls of
the apartment;
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.
(l) “Chairperson” means the Chairperson of the Real Estate Regulatory
Authority appointed under section 21;
(m) “commencement certificate” means the commencement certificate or
the building permit or the construction permit, by whatever name
called issued by the competent authority to allow or permit the
promoter to begin development works on an immovable property, as
per the sanctioned plan;
(n) “common areas” mean,—
(i) the entire land for the real estate project or where the project is
developed in phases and registration under this Act is sought for
a phase, the entire land for that phase;
(ii) the stair cases, lifts, staircase and lift lobbies, fire escapes, and
common entrances and exits of buildings;
4
(iii) the common basements, terraces, parks, play areas, open
parking areas and common storage spaces;
(iv) 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 of community service
personnel;
(v) Installations of central services such as electricity, gas, water
and sanitation, air-conditioning and incinerating, system for
water conservation and renewable energy;
(vi) the water tanks, sumps, motors, fans, compressors, ducts and
all apparatus connected with installations for common use;
(vii) all community and commercial facilities as 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;
(o) “company” means a company incorporated and registered under the
Companies Ordinance, 1984 and includes,—
(i) a corporation established by or under any Federal Act or
Provincial Act;
(ii) a development authority or any public authority established by
the Government in this behalf under any law for the time being
in force;
(p) “competent authority” means the local authority or any authority
created or established under any law for the time being in force by the
appropriate Government which exercises authority over land under its
jurisdiction, and has powers to give permission for development of
such immovable property;
5
(q) “completion certificate” means the completion certificate, or such other
certificate, by whatever name called, issued by the competent
authority certifying that the real estate project has been developed
according to the sanctioned plan, layout plan and specifications, as
approved by the competent authority under the local laws;
(r) “day” means the working day, in the concerned Province or Federal
territory, as the case may be, notified by the appropriate Government
from time to time;
(s) “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;
(t) “development works” means the external development works and
internal development works on immovable property;
(u) “engineer” means a person who possesses a bachelor’s degree or
equivalent from an institution recognized by the Higher Education
Commission of Pakistan;
(v) “estimated cost of real estate project” means the total cost involved in
developing the real estate project and includes the land cost, taxes,
cess, development and other charges;
(w) “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;
(x) “family” includes husband, wife, minor son and unmarried daughter
wholly dependent on a person;
6
(y) “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;
(z) “immovable property” includes land, buildings, rights of ways, lights or
any other 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;
(za) “interest” means the rates of interest payable by the promoter 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 promoter, in
case of default, shall be equal to the rate of interest which the
promoter shall be liable to pay the allottee, in case of default;
(ii) the interest payable by the promoter to the allottee shall be from the
date the promoter received the amount or any part thereof till the date
the amount or part thereof and interest thereon is refunded, and the
interest payable by the allottee to the promoter shall be from the date
the allottee defaults in payment to the promoter till the date it is paid;
(zb) “internal development works” means roads, footpaths, water supply,
sewers, drains, parks, tree planting, street lighting, provision for
community buildings and for treatment and disposal of sewage and
sullage water, 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;
(zc) “local authority” means the Municipal Corporation or Municipality or
any other Local Body constituted under any law for the time being in
force for providing municipal services or basic services, as the case
may be, in respect of areas under its jurisdiction;
7
(zd) “Member” means the member of the Real Estate Regulatory Authority
appointed under section 21 and includes the Chairperson;
(ze) “notification” means a notification published in the Official Gazette and
the expression “notify” shall be construed accordingly;
(zf) “occupancy certificate” means the occupancy certificate, or such other
certificate by whatever name called, issued by the competent authority
permitting occupation of any building, as provided under local laws,
which has provision for civic infrastructure such as water, sanitation
and electricity;
(zg) “Person” includes,—
(i) an individual;
(ii) an undivided family;
(iii) a company;
(iv) a firm under the Pakistani Partnership Act, 1932 or the
Companies Ordinance, 1984, as the case may be;
(v) a competent authority;
(vi) an association of persons or a body of individuals whether
incorporated or not;
(vii) a co-operative society registered under any law relating to cooperative
societies;
(viii) any such other entity as the appropriate Government may, by
notification, specify in this behalf;
(zh) “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 appropriate
Government or any competent authority and includes any area
designated by the appropriate Government or the competent authority
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;
8
(zi) “prescribed” means prescribed by rules made under this Act;
(zj) “project” means the real estate project as defined in cluase (zn);
(zk) “promoter” means,—
(i) 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 and includes his assignees; or
(ii) a person who develops land into a project, whether or not the
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, whether with or without structures
thereon; or
(iii) 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; 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;
(iv) an apex level co-operative housing finance society and a
primary co-operative housing society which constructs
apartments or buildings for its Members or in respect of the
allottees of such apartments or buildings; or
9
(v) any other person who acts himself as a builder, colonizer,
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
(vi) 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 or develops a plot for
sale and the persons who sells apartments or plots are different
persons, both of them shall be deemed to be the promoters and shall
be jointly liable as such for the functions and responsibilities specified,
under this Act or the rules and regulations made thereunder;
(zl) “prospectus” means any document described or issued as a prospectus
or any notice, circular, or other document offering for sale or any real
estate project or inviting any person to make advances or deposits for
such purposes;
(zm) “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;
10
(zn) “real estate project” means the development of 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 or
apartment, 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;
(zo) “regulations” means the regulations made by the Authority under this
Act;
(zp) “rule” means the rules made under this Act by the appropriate
Government; and
(zq) “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 competent authority prior to
start of a real estate project.
(2) The words and expressions used herein and not defined in this Act but
defined in any law for the time being in force or in the municipal laws or such other
relevant laws of the appropriate Government shall have the same meanings
respectively assigned to them in those laws.
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CHAPTERII
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 promoter 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 Real Estate Regulatory Authority
established under this Act:
Provided that projects that are ongoing on the date of commencement of this
Act and for which the completion certificate has not been issued, the promoter shall
make an application 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 with the
requisite permission of the local authority, it may, by order, direct the promoter of
such project to register with the Authority, and the provisions of this Act or the
rules and regulations made thereunder, shall apply to such projects from that stage
of registration.
(2) Notwithstanding anything contained in sub-section (1), no registration
of the real estate project shall be required,—
(a) where the area of land proposed to be developed does not exceed five
hundred square meters or the number of apartments proposed to be
developed does not exceed eight inclusive of all phases:
Provided that, if the appropriate Government considers it necessary, it
may, reduce the threshold below five hundred square meters or eight
apartments, as the case may be, inclusive of all phases, for exemption from
registration under this Act;
(b) where the promoter has received completion certificate for a real
estate project prior to commencement of this Act; and
12
(c) for the purpose of renovation or repair or re-development which does
not involve marketing, advertising selling or new allotment of any
apartment, plot or building, as the case may be, under the real estate
project.
Explanation.— For the purpose of this section, where the real estate project
is to be developed in phases, every such phase shall be considered a standalone
real estate project, and the promoter shall obtain registration under
this Act for each phase separately.
4. Application for registration of real estate project.— (1) Every promoter
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 promoter shall enclose the following documents along with the
application referred to in sub-section (1), namely:—
(a) a brief details of his enterprise including its name, registered address,
type of enterprise (proprietorship, societies, partnership, companies,
competent authority), and the particulars of registration, and the
names and photographs of the promoter;
(b) 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;
(c) an authenticated copy of the approvals and commencement certificate
from the competent authority 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 competent authority for each of such phases;
13
(d) the sanctioned plan, layout plan and specifications of the proposed
project or the phase thereof, and the whole project as sanctioned by
the competent authority;
(e) the plan of development works to be executed in the proposed project
and the proposed facilities to be provided thereof including fire fighting
facilities, drinking water facilities, emergency evacuation services, use
of renewable energy;
(f) the location details of the project, with clear demarcation of land
dedicated for the project along with its boundaries including the
latitude and longitude of the end points of the project;
(g) proforma of the allotment letter, agreement for sale, and the
conveyance deed proposed to be signed with the allottees;
(h) the number, type and the carpet area of apartments for sale in the
project along with the area of the exclusive balcony or verandah areas
and the exclusive open terrace areas apartment with the apartment, if
any;
(i) the number and areas of garage for sale in the project;
(j) the names and addresses of his real estate agents, if any, for the
proposed project;
(k) the names and addresses of the contractors, architect, structural
engineer, if any and other persons concerned with the development of
the proposed project;
(l) a declaration, supported by an affidavit, which shall be signed by the
promoter or any person authorized by the promoter, stating:—
(i) 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;
14
(ii) that the land is free from all encumbrances, 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;
(iii) the time period within which he undertakes to complete the
project or phase thereof, as the case may be;
(iv) that seventy percent of the amounts realized for the real estate
project from the allottees, from time to time, 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 promoter 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 promoter 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 promoter 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.
(v) that he shall take all the pending approvals on time, from the
competent authorities;
15
(vi) that he has furnished such other documents as may be
prescribed by the rules or regulations made under this Act; and
(m) such other information and documents as may be prescribed.
(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 its establishment.
5. Grant of registration.— (1) On receipt of the application under
sub-section (1) of section 4, the Authority shall within a period of thirty days,-
(a) 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 to create his web page and to fill therein
the details of the proposed project; or
(b) 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 matter.
(2) 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 days 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 promoter for accessing
the website of the Authority and to create his web page and to fill therein the
details of the proposed project.
(3) The registration granted under this section shall be valid for a period
declared by the promoter under sub-clause (ii) of clause (l) of sub-section (2) of
section 4 for completion of the project or phase thereof, as the case may be.
16
6. Extension of registration.— The registration granted under section 5 may
be extended by the Authority on an application made by the promoter due to force
majeure, in such form and on payment of such fee as may be specified by
regulations made by the Authority:
Provided that the Authority may in reasonable circumstances, without default
on the part of the promoter, based on the facts of each case, and 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.— (1) The Authority may, on receipt of a
complaint or suo motu in this behalf or on the recommendation of the competent
authority, revoke the registration granted under section 5, after being satisfied
that—
(a) the promoter makes default in doing anything required by or under
this Act or the rules or the regulations made thereunder;
(b) the promoter violates any of the terms or conditions of the approval
given by the competent authority;
(c) the promoter 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:—
17
(A) the practice of making any statement, whether in writing or by
visible representation which,—
(i) falsely represents that the services are of a particular
standard or grade;
(ii) represents that the promoter has approval or affiliation
which such promoter does not have;
(iii) makes a false or misleading representation concerning
the services;
(B) the promoter permits the publication of any advertisement or
prospectus whether in any newspaper or otherwise of services
that are not intended to be offered;
(d) the promoter indulges in any fraudulent practices.
(2) The registration granted to the promoter under section 5 shall not be
revoked unless the Authority has given to the promoter 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 promoter within the
period of that notice against the proposed revocation.
(3) The Authority may, instead of revoking the registration under subsection
(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 promoter.
(4) The Authority, upon the revocation of the registration,-
(a) shall debar the promoter 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.
18
(b) shall facilitate the remaining development works to be carried out in
accordance with the provisions of section 8;
(c) shall direct the bank holding the project back account, specified under
sub clause (iv) of clause (l) of sub-section (2) of section 4, to freeze
the account, and thereafter take such further necessary actions,
including consequent de-freezing of the said account, towards
facilitating the remaining development works in accordance
with the provisions of section 8;
(d) may, to protect the interest of allottees or in the public interest, issue
such directions as it may deem necessary.
8. Obligation of Authority consequent upon lapse of or on revocation of
registration.— Upon lapse of the registration or on revocation of the registration
under this Act, the Authority, may consult the appropriate Government to take such
action as it may deem fit including the carrying out of the remaining development
works by competent authority or by the association of allottees 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 under the
provisions of this Act:
Provided further that in case of revocation of registration of a project under
this Act, 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 may be, 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 promoter in any planning area, without obtaining
registration under this section.
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(2) Every real estate agent shall make an application to the Authority for
registration in such form, manner, within such time and accompanied by such fee
and documents as may be prescribed.
(3) The Authority shall, within such period, in such manner and upon
satisfying itself of the fulfillment of such conditions, as may be prescribed—
(a) grant a single registration to the real estate agent;
(b) 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 does not receive any communication about the deficiencies in his
application or the rejection of his application, he shall be deemed to have been
registered.
(5) 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 Act.
(6) Every registration shall be valid for such period as may be prescribed,
and shall be renewable for a period in such manner and on payment of such fee as
may be prescribed.
(7) 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 thereunder, 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 under this Act, revoke the registration or suspend
the same for such period as it thinks fit:
20
Provided that no such revocation or suspension shall be made by the
Authority unless an opportunity of being heard has been given to the real estate
agent.
10. Functions of real estate agents.— Every real estate agent registered
under section 9 shall—
(a) 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 promoter in any planning area, which is not registered with the
Authority;
(b) maintain and preserve such books of account, records and documents
as may be prescribed;
(c) not involve himself in any unfair trade practices, namely:—
(i) the practice of making any statement, whether orally or in
writing or by visible representation which—
(A) falsely represents that the services are of a particular
standard or grade;
(B) represents that the promoter or himself has approval or
affiliation which such promoter or himself does not have;
(C) makes a false or misleading representation concerning
the services;
(ii) permitting the publication of any advertisement whether in any
newspaper or otherwise of services that are not intended to be
offered.
(d) 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;
(e) discharge such other functions as may be prescribed.
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CHAPTER III
FUNCTIONS AND DUTIES OF PROMOTER
11. Functions and duties of promoter— (1) The promoter 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 web page 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—
(a) details of the registration granted by the Authority;
(b) quarterly up-to-date the list of number and types of apartments or
plots, as the case may be, booked;
(c) quarterly up-to-date the list of number of garages booked;
(d) quarterly up-to-date the list of approvals taken and the approvals
which are pending subsequent to commencement certificate;
(e) 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.
(2) The advertisement or prospectus issued or published by the promoter
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 thereto.
(3) The promoter at the time of the booking and issue of allotment letter
shall be responsible to make available to the allottee, the following information,
namely:—
(a) sanctioned plans, layout plans, along with specifications, approved by
the competent authority, by display at the site or such other place as
may be specified by the regulations made by the Authority;
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(b) the stage wise time schedule of completion of the project, including
the provisions for civic infrastructure like water, sanitation and
electricity.
(4) The promoter shall—
(a) be responsible for all obligations, responsibilities and functions under
the provisions of this Act or the rules and regulations made thereunder
or to the allottees 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 of allottees or the
competent authority, as the case may be:
Provided that the responsibility of the promoter, 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 buildings, as the case
may be, to the allottees are executed.
(b) be responsible to obtain the completion certificate or the occupancy
certificate, or both, as applicable, from the relevant competent
authority as per local laws or other laws for the time being in force and
to make it available to the allottees individually or to the association of
allottees, as the case may be;
(c) be responsible to obtain the lease certificate, where the real estate
project 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 certificate
available to the association of allottees;
(d) 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;
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(e) enable the formation of an association or society or co-operative
society, as the case may be, of the allottees, or a federation 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 majority of allottees having booked their plot or
apartment or building, as the case may be, in the project;
(f) execute a registered conveyance deed of the apartment, plot or
building, 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 competent authority, as the case may be, as provided
under section 17 of this Act;
(g) 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 promoter fails 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 promoter 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 therefor by such
authority or person;
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(h) after he executes an agreement for sale for any apartment, plot or
building, as the case 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.
(5) The promoter 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 cancellation and such cancellation is not in accordance with the
terms of the agreement for sale, unilateral and without any sufficient cause.
(6) The promoter shall prepare and maintain all such other details as may
be specified, from time to time, by regulations made by the Authority.
12. Obligations of promoter regarding veracity of the advertisement or
prospectus.— 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 therein, he
shall be compensated by the promoter 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 model 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 promoter without first entering
into agreement for sale.— (1) A promoter 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 law for the time being in force.
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(2) The agreement for sale referred to in sub-section (1) shall be in such
form as may be prescribed and shall specify the particulars 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 allottees
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 promoter to the allottee and the
allottee to the promoter in case of default, and such other particulars, as may be
prescribed.
14. Adherence to sanctioned plans and project specifications by the
promoter.— (1) The proposed project shall be developed and completed by the
promoter in accordance with the sanctioned plans, layout plans and specifications
as approved by the competent authorities.
(2) 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 competent authority, 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 promoter 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 promoter 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 authorised Architect or
Engineer after proper declaration and intimation to the allottee.
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Explanation.—For the purpose of this clause, “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.
(ii) 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 promoter, 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.
(3) In case any structural defect or any other defect in workmanship,
quality or provision of services or any other obligations of the promoter as per the
agreement for sale relating to such development is brought to the notice of the
promoter within a period of five years by the allottee from the date of handing over
possession, it shall be the duty of the promoter to rectify such defects without
further charge, within thirty days, and in the event of promoter’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. Obligations of promoter in case of transfer of a real estate project to
a third party.— (1) The promoter shall not transfer or assign his majority rights
and liabilities in respect of a real estate project to a third party without obtaining
prior written consent from two-third allottees, except the promoter, and without the
prior written approval of the Authority:
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Provided that such transfer or assignment shall not affect the allotment or
sale of the apartments, plots or buildings as the case may be, in the real estate
project made by the erstwhile promoter.
Explanation.—For the purpose of this sub-section, the allottee, 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, 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.
(2) On the transfer or assignment being permitted by the allottees and the
Authority under sub-section (1), the intending promoter shall be required to
independently comply with all the pending obligations under the provisions of this
Act or the rules and regulations made thereunder, and the pending obligations as
per the agreement for sale entered into by the erstwhile promoter 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 promoter to complete
the real estate project and he shall be required to comply with all the pending
obligations of the erstwhile promoter, and in case of default, such intending
promoter shall be liable to the consequences of breach or delay, as the case may
be, as provided under this Act or the rules and regulations made thereunder.
16. Obligations of promoter regarding insurance of real estate
project.— (1) The promoter shall obtain all such insurances as may be notified by
the appropriate Government, including but not limited to insurance in respect of—
(i) title of the land and building as a part of the real estate project; and
(ii) construction of the real estate project.
(2) The promoter 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 allottees.
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(3) 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 promoter entering into an agreement for sale with the allottee.
(4) 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 allottees.
17. Transfer of title.— (1) The promoter 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 competent authority, as the
case may be, and hand over the physical possession of the plot, apartment or
building, as the case may be, to the allottees and the common areas to the
association of the allottees or the competent authority, as the case may
be, in a real estate project, and the other title documents pertaining thereto within
specified period as per sanctioned plans as provided under the local laws:
Provided that, in the absence of any local law, conveyance deed in favour of
the allottee or the association of the allottees or the competent authority, as the
case may be, under this section shall be carried out by the promoter within three
months from date of issue of occupancy certificate.
(2) 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 promoter to handover the necessary documents and plans, including
common areas, to the association of the allottees or the competent authority, as
the case may be, as per the local laws:
Provided that, in the absence of any local law, the promoter shall handover
the necessary documents and plans, including common areas, the association of the
allottees or the competent authority, as the case may be, within thirty days after
obtaining the occupancy certificate.
18. Return of amount and compensation.— (1) If the promoter fails to
complete or is unable to give possession of an apartment, plot or building,—
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(a) in accordance with the terms of the agreement for sale or, as the case
may be, duly completed by the date specified therein; 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 case may 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 promoter, interest for every
month of delay, till the handing over of the possession, at such rate as
may be prescribed.
(2) The promoter 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 sub-section shall not be barred by limitation provided
under any law for the time being in force.
(3) If the promoter 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, in the manner as provided under this Act.
CHAPTER IV
RIGHTS AND DUTIES OF ALLOTTEES
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 competent authority and such other information as
provided in this Act or the rules and regulations made thereunder or the agreement
for sale signed with the promoter.
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(2) 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 promoter and the
allottee in accordance with the terms and conditions of the agreement for sale.
(3) 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
promoter under sub-clause (iii) of clause (l) of sub-section (2) of section 4.
(4) 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 promoter, if the promoter 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 thereunder.
(5) 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 promoter.
(6) Every allottee, who has entered into an agreement for sale to take an
apartment, plot or building as the case may be, under section 13, 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 any.
(7) The allottee shall be liable to pay interest, at such rate as may be
prescribed, for any delay in payment towards any amount or charges to be paid
under sub-section (6).
(8) The obligations of the allottee under sub-section (6) and the liability
towards interest under sub-section (7) may be reduced when mutually agreed to
between the promoter and such allottee.
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(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, plot 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 subsection
(1) of section 17 of this Act.
CHAPTER V
THE REAL ESTATE REGULATORY AUTHORITY
20. Establishment and incorporation of Real Estate Regulatory
Authority.— (1) The Federal Government shall, within a period of one year from
the date of coming into force of this Act, by notification, establish an Authority to be
known as the Real Estate Regulatory Authority to exercise the powers conferred on
it and to perform the functions assigned to it under this Act:
Provided that, the Federal Government may, if it deems fit, establish more
than one Authority in a province, as the case may be:
Provided also that until the establishment of a Regulatory Authority under
this section, the Federal Government shall, by order, designate any Regulatory
Authority or any officer preferably the Secretary of the department dealing with
Housing, as the Regulatory 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 Regulatory 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.
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(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 provisions
of this Act, to acquire, hold and dispose of property, both movable and immovable,
and to contract, and shall, by the said name, sue or be sued.
21. Composition of Authority.— The Authority shall consist of a Chairperson
and not less than two whole time Members to be appointed by the Federal
Government.
22. Qualifications of Chairperson and Members of Authority.— The
Chairperson and other Members of the Authority shall be appointed by the Federal
Government on the recommendations of a Selection Committee consisting of the
Chief Justice of the Supreme Court or his nominee, the Secretary of the Department
dealing with Housing and the Law Secretary, in such manner as may be prescribed,
from amongst persons having adequate knowledge of and professional experience
of at-least fifteen years in case of the Chairperson and ten years in the case of the
Members in urban development, housing, real estate development, infrastructure,
economics, technical experts from relevant fields, planning, law, commerce,
accountancy, industry, management, social service, public affairs or administration:
Provided that a person who is, or has been, in the service of the Provincial
Government shall not be appointed as a Chairperson unless such person has held
the post of Additional Secretary to the Federal Government or any equivalent post
in the Federal Government or Provincial Government:
Provided further that a person who is, or has been, in the service of the
Provincial Government shall not be appointed as a member unless such person has
held the post of Secretary to the Provincial Government or any equivalent post in
the Provincial Government or Federal Government.
23. Term of office of Chairperson and Members.— (1) The Chairperson and
Members shall hold 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.
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(2) Before appointing any person as a Chairperson or Member, the
appropriate Government 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.
24. Salary and allowances payable to Chairperson and Members.— (1) 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 and shall
not be varied to their disadvantage during their tenure.
(2) Notwithstanding anything contained in sub-sections (1) and (2) of
section 23, the Chairperson or a Member, as the case may be, may,—
(a) relinquish his office by giving in writing, to the appropriate
Government, notice of not less than three months; or
(b) be removed from his office in accordance with the provisions of
section 26 of this Act.
(3) 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.
25. Administrative powers of Chairperson.— The Chairperson 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.
26. Removal of Chairperson and Members from office in certain
circumstances.— (1) The appropriate 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,—
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence, involving moral turpitude; or
34
(c) has become physically or mentally incapable of acting as a Member; or
(d) has acquired such financial or other interest as is likely to affect
prejudicially his functions; or
(e) has so abused his position as to render his continuance in office
prejudicial to the public interest.
(2) The Chairperson or Member shall not be removed from his office on
the ground specified under clause (d) or clause (e) of sub-section (1) except by an
order made by the appropriate Government after an inquiry made by a Judge of the
High Court in which such Chairperson or Member has been informed of the charges
against him and given a reasonable opportunity of being heard in respect of those
charges.
27. Restrictions on Chairperson or Members on employment after
cessation of office.— (1) The Chairperson or a Member, ceasing to hold office as
such, shall not—
(a) 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 clause shall apply to any
employment under the appropriate 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 promoter as per the provisions of this Act;
(b) 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;
35
(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.
(2) 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.
28. Officers and other employees of Authority.— (1) The appropriate
Government may, in consultation with the Authority appoint such officers and
employees as it considers necessary for the efficient discharge of their functions
under this Act who would discharge their functions under the general
superintendence of the Chairperson.
(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 appointed under
sub-section (1) shall be such as may be prescribed.
29. 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
business at its meetings, (including quorum at such meetings), as may be specified
by the regulations made by the Authority.
(2) If the Chairperson for any reason, is unable to attend a meeting of the
Authority, any other Member chosen by the Members present amongst themselves
at the meeting, shall preside at the meeting.
(3) 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 vote.
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(4) 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.
30. Vacancies etc. not to invalidate proceeding of Authority.— No act or
proceeding of the Authority shall be invalid merely by reason of—
(a) 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.
31. Filing of complaints with the Authority or the adjudicating
officer.— (1) Any aggrieved person may file a complaint with the Authority or the
adjudicating officer, as the case may be, for any violation or contravention of the
provisions of this Act or the rules and regulations made thereunder against any
promoter allottee or real estate agent, as the case may be.
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.
32. Functions of Authority for promotion of real estate sector.— 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 appropriate Government of the competent authority, as the case may be, on,—
(a) protection of interest of the allottees, promoter and real estate agent;
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(b) creation of a single window system for ensuring time bound project
approvals and clearances for timely completion of the project;
(c) creation of a transparent and robust grievance redressal mechanism
against acts of omission and commission of competent authorities and
their officials;
(d) measures to encourage investment in the real estate sector including
measures to increase financial assistance to affordable housing
segment;
(e) measures to encourage construction of environmentally sustainable
and affordable housing, promoting standardization and use of
appropriate construction materials, fixtures, fittings and construction
techniques;
(f) measures to encourage grading of projects on various parameters of
development including grading of promoters;
(g) measures to facilitate amicable conciliation of disputes between the
promoters and the allottees through dispute settlement forums set up
by the consumer or promoter associations;
(h) measures to facilitate digitization of land records and system towards
conclusive property titles with title guarantee;
(i) to render advice to the appropriate Government in matters relating to
the development of real estate sector;
(j) any other issue that the Authority may think necessary for the
promotion of the real estate sector.
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33. Advocacy and awareness measures.— (1) The appropriate 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 appropriate
Government which may thereafter take further action as it deems fit.
(2) The opinion given by the Authority under sub-section (1) shall not be
binding upon the appropriate Government in formulating such policy or 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.
34. Functions of Authority.— The functions of the Authority shall include—
(a) to register and regulate real estate projects and real estate agents
registered under this Act;
(b) 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 provided in the
application for which registration has been granted;
(c) to maintain a database, on its website, for public viewing, and enter
the names and photographs of promoters 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;
(d) to maintain a database, on its website, for 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;
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(e) to fix through regulations for each areas under its jurisdiction the
standard fees to be levied on the allottees or the promoter or the real
estate agent, as the case may be;
(f) to ensure compliance of the obligations cast upon the promoters, the
allottees and the real estate agents under this Act and the rules and
regulations made thereunder;
(g) to ensure compliance of its regulations or orders or directions made in
exercise of its powers under this Act;
(h) to perform such other functions as may be entrusted to the Authority
by the appropriate Government as may be necessary to carry out the
provisions of this Act.
35. Powers of Authority to call for information, conduct
investigations.— (1) Where the Authority considers it expedient to do so, on a
complaint or suo-motu, relating to this Act or the rules of regulations made
thereunder, it may, by order in writing and recording reasons therefor call upon any
promoter 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 promoter or allottee or the real estate agent, as the
case may be.
(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, 1908 while trying a suit, in respect of the following matters, namely:—
(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 persons and
examining them on oath;
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(iii) issuing commissions for the examination of witnesses or
documents;
(iv) any other matter which may be prescribed.
36. Power 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 promoter, allottee
or real estate agent from carrying on such act until the conclusion of such inquiry of
until further orders, without giving notice to such party, where the Authority deems
it necessary.
37. 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
promoters or allottees or real estate agents, as the case may be, as it may consider
necessary and such directions shall be binding on all concerned.
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
promoters, the allottees and the real estate agents, under this Act or the rules and
the regulations made thereunder.
(2) 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 have powers to regulate its own procedure.
(3) 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.
39. Rectification 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 to rectify any
mistake apparent from the record, amend any order passed by it, and shall make
such amendment, if the mistake is brought to its notice by the parties:
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Provided that no such amendment shall be made in respect of any order
against which an appeal has been preferred under this Act:
Provided further that the Authority shall not, while rectifying any mistake
apparent from record, amend substantive part of its order passed under the
provisions of this Act.
40. Recovery of interest or penalty or compensation and enforcement of
order etc.— (1) If a promoter 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 adjudicating 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 promoter or allottee or real estate agent, in such
manner as may be prescribed as an arrears of land revenue.
(2) If any adjudicating 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, in such manner as
may be prescribed.
CHAPTER VI
CENTRAL ADVISORY COUNCIL
41. Establishment of Central Advisory Council.— (1) The Federal
Government may, by notification, establish with effect from such date as it may
specify in such notification, a Council to be known as the Central Advisory Council.
(2) The Minister to the Government of Pakistan in charge of the Ministry of
the Housing and Work shall be the ex officio Chairperson of the Central Advisory
Council.
(3) The Central Advisory Council shall consist of representatives of the
Ministry of Finance, Ministry of Commerce, Ministry of Law and Justice, National
Housing Authority and Pakistan Housing Authority.
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(4) The Central Advisory Council shall also consist of not more than ten members
(6 as per sub-sections (3) and (4)) to represent the interests of real estate
industry, consumers, real estate agents, construction labourers, non-governmental
organizations and academic and research bodies in the real estate sector.
42. Functions of Central Advisory Council.— (1) The functions of the Central
Advisory Council shall be to advise and recommend the Federal Government,—
(a) on all matters concerning the implementation of this Act;
(b) on major questions of policy;
(c) towards protection of consumer interest;
(d) to foster the growth and development of the real estate sector;
(e) on any other matter as may be assigned to it by the Federal
Government.
(2) The Federal Government may specify the rules to give effect to the
recommendations of the Central Advisory Council on matters as provided under
sub-section (1).
CHAPTERVII
THE REAL ESTATE APPELLATE TRIBUNAL
43. Establishment of Real Estate Appellate Tribunal.— (1) The appropriate
Government shall, within a period of one year from the date of coming into force of
this Act, by notification, establish an Appellate Tribunal to be known
as the — (name of the Province/Federal territory) Real Estate Appellate Tribunal.
(2) The appropriate Government may, if it deems necessary, establish one or
more benches of the Appellate Tribunal, for various jurisdictions, in the Province or
Federal territory, as the case may be.
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(3) Every bench of the Appellate Tribunal shall consist of at least one Judicial
Member and one Administrative or Technical Member.
(4) The appropriate Government of two or more Provinces or Federal
territories may, if it deems fit, establish one single Appellate Tribunal:
Provided that, until the establishment of an Appellate Tribunal under this
section, the appropriate 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:
Provided further that after the Appellate Tribunal under this section is
established, all matters pending with the Appellate Tribunal designated to hear
appeals, shall stand transferred to the Appellate Tribunal so established and shall
be heard from the stage such appeal is transferred.
(5) Any person aggrieved by any direction or decision or order made by
the Authority or by an adjudicating officer under this Act may prefer an appeal
before the Appellate Tribunal having jurisdiction over the matter:
Provided that where a promoter files an appeal with the Appellate Tribunal, it
shall not be entertained, without the promoter 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.
44. Application for settlement of disputes and appeals to Appellate
Tribunal.— (1) The appropriate Government or the competent authority or any
person aggrieved by any direction or order or decision of the Authority or the
adjudicating officer may prefer an appeal to the Appellate Tribunal.
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(2) 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 adjudicating officer is received by the appropriate
Government or the competent authority 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.
(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal
may after giving the parties an opportunity of being heard, pass such orders,
including interim orders, as it thinks fit.
(4) The Appellate Tribunal shall send a copy of every order made by it to
the parties and to the Authority or the adjudicating 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 disposed of within the said
period of sixty days, the Appellate Tribunal shall record its reasons 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
adjudicating 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.
45. Composition of Appellate Tribunal.— The Appellate Tribunal shall consist
of a Chairperson and not less than two whole time Members of which one shall be a
Judicial member and other shall be a Technical or Administrative Member, to be
appointed by the appropriate Government.
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Explanation.—For the purposes of this Chapter,—
(i) “Judicial Member” means a Member of the Appellate Tribunal
appointed as such under clause (b) of sub-section (1) of section 46;
(ii) “Technical or Administrative Member” means a Member of the
Appellate Tribunal appointed as such under clause (c) of subsection
(1) of section 46.
46. Qualifications for appointment of Chairperson and Members.— (1) A
person shall not be qualified for appointment as the Chairperson or a Member of the
Appellate Tribunal unless he,—
(a) in the case of Chairperson, is or has been a Judge of a High Court; and
(b) in the case of a Judicial Member he has held a judicial office in the
territory of Pakistan for at least fifteen years or has held the post of
Additional Secretary of that service or any equivalent post, or has been
an advocate for at least ten years with experience in dealing with real
estate matters; and
(c) in the case of a Technical or Administrative Member, he is a person
who is well-versed in the field of urban development, housing, real
estate development, infrastructure, economics, planning, law,
commerce, accountancy, industry, management, public affairs or
administration and possesses experience of at least fifteen years in the
field or who has held the post in the Federal Government, or a
Provincial Government equivalent to the post of Additional Secretary to
the Government of Pakistan or an equivalent post in the Federal
Government or an equivalent post in the Provincial Government.
(2) The Chairperson of the Appellate Tribunal shall be appointed by the
appropriate Government in consultation with the Chief Justice of High Court or his
nominee.
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(3) The judicial Members and Technical or Administrative Members of the
Appellate Tribunal shall be appointed by the appropriate Government on the
recommendations of a Selection Committee consisting of the Chief Justice of the
High Court or his nominee, the Secretary of the Department handling Housing and
the Law Secretary and in such manner as may be prescribed.
47. 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 he enters upon his
office, but shall not be eligible for re-appointment:
Provided that in case a person, who is or has been a Judge of a High Court,
has been appointed as Chairperson of the Tribunal, he shall not hold office after he
has attained the age of sixty-five years:
Provided further that no Judicial Member or Technical or Administrative
Member shall hold office after he has attained the age of sixty-five years.
(2) Before appointing any person as Chairperson or Member, the
appropriate Government 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.
48. Salary and allowances payable to Chairperson and Members.— (1) 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 and shall
not be varied to their disadvantage during their tenure.
(2) Notwithstanding anything contained in sub-sections (1) and (2) of
section 47, the Chairperson or a Member, as the case may be, may:—
(a) relinquish his office by giving in writing to the appropriate Government
a notice of not less than three months;
(b) be removed from his office in accordance with the provisions of
section 49.
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(3) A vacancy caused to the office of the Chairperson or any other Member,
as the case may be, shall be filled-up within a period of three months from the date
on which such vacancy occurs.
49. Removal of Chairperson and Member from office in certain
circumstances.— (1) The appropriate Government may, in consultation with the
Chief Justice of the High Court, remove from office of the Chairperson or any
judicial Member or Technical or Administrative Member of the Appellate Tribunal,
who—
(a) has been adjudged as an insolvent; or
(b) has been convicted of an offence which, in the opinion of the
appropriate Government involves moral turpitude; or
(c) has become physically or mentally incapable; or
(d) has acquired such financial or other interest as is likely to affect
prejudicially his functions; or
(e) has so abused his position as to render his continuance in office
prejudicial to the public interest.
(2) The Chairperson or Judicial member or Technical or Administrative
Member shall not be removed from his office except by an order made by the
appropriate Government after an inquiry made by the Judge of the High Court in
which such Chairperson or Judicial member or Technical or Administrative Member
has been informed of the charges against him and given a reasonable opportunity
of being heard in respect of those charges.
(3) The appropriate Government may suspend from the office of the
Chairperson or Judicial member or Technical or Administrative Member in respect of
whom a reference of conducting an inquiry has been made to the Judge of the High
Court under sub-section (2), until the appropriate Government passes an order on
receipt of the report of inquiry made by the Judge of the High Court on such
reference.
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(4) The appropriate Government may, by rules, regulate the procedure for
inquiry referred to in sub-section (2).
50. Restrictions on Chairperson or Judicial Member or Technical or
Administrative Member on employment after cessation of office.— (1) The
Chairperson or Judicial Member or Technical or Administrative Member, ceasing to
hold office as such shall not:—
(a) 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 clause shall apply to any
employment under the appropriate 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 promoter as per the provisions of this Act;
(b) 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;
(c) give advice to any person using information which was obtained in his
capacity as the Chairperson or Judicial Member or Technical or
Administrative 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.
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(2) The Chairperson or Judicial Member or Technical or Administrative 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.
51. Officers and other employees of Appellate Tribunal.— (1) The
appropriate Government shall provide the Appellate Tribunal with such officers and
employees as it may deem fit.
(2) The officers and employees of the Appellate Tribunal shall discharge
their functions under the general superintendence of its Chairperson.
(3) 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 prescribed.
52. Vacancies.— If, for reason other than temporary absence, any vacancy
occurs in the office of the Chairperson or a Member of the Appellate Tribunal, the
appropriate Government shall appoint another person in accordance with the
provisions of this Act to fill the vacancy and the proceedings may be continued
before the Appellae Tribunal from the stage at which the vacancy is filled.
53. Powers of Tribunal.— (1) The Appellate Tribunal shall be bound by the
procedure laid down by the Code of Civil Procedure, 1908.
(2) The Appellate Tribunal shall also be bound by the rules of evidence
contained in the Qanoon Shadat 1984.
(3) 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:—
(a) summoning and enforcing the attendance of any person and
examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
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(d) issuing commissions for the examinations of witnesses or documents;
(e) reviewing its decisions;
(f) dismissing an application for default or directing it ex parte; and
(g) any other matter which may be prescribed.
54. Administrative powers of Chairperson 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
administrative powers and functions of the Appellate Tribunal as may be prescribed.
55. Vacancies etc. not to invalidate proceeding of Appellate Tribunal.—
No act or proceeding of the Appellate Tribunal shall be invalid merely by reason of—
(a) any vacancy in, or any defect in the constitution of, the Appellate
Tribunal, or
(b) any defect in the appointment of a person acting as a Member of the
Appellate Tribunal; or
(c) Any irregularity in the procedure of the Appellate Tribunal not affecting
the merits of the case.
56. Right to legal representation.— The applicant or appellant 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
adjudicating officer, as the case may be.
57. Orders passed by Appellate Tribunal to be executable as a decree.—
(1) Every 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
Appellate Tribunal shall have all the powers of a civil court.
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(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 made by the court.
58. Appeal to High Court.— (1) Any person aggrieved by any decision or order
of the Appellate Tribunal, may, file an appeal to the 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 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.
Explanation.—The expression “High Court” means the High Court of a
Province or Federal territory where the real estate project is situated.
CHAPTERVIII
OFFENCES, PENALTIES AND ADJUDICATION
59. Punishment for non-registration under Section 3.— (1) If any promoter
contravenes the provisions of section 3, he shall be liable to a penalty which may
extend up to ten percent of the estimated cost of the real estate project as
determined by the Authority.
(2) If any promoter does not comply with the orders, decisions or
directions issued under sub-section (1) or continues to violate the provisions of
section 3, 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 per cent of the
estimated cost of the real estate project, or with both.
60. Penalty for contravention under Section 4.— If any promoter provides
false information or contravenes the provisions of section 4, he shall be liable to a
penalty which may extend up to five percent of the estimated cost of the real estate
project, as determined by the Authority.
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61. Penalty for contravention of other provisions of this Act.— If any
promoter contravenes any other provisions of this Act, other than that provided
under section 3 or section 4, or the rules or regulations made thereunder, he shall
be liable to a penalty which may extend up to five per cent of the estimated cost of
the real estate project as determined by the Authority.
62. Penalty for non-registration and contravention under sections 9 and
10.— If any real estate agent fails to comply with or contravenes the provisions of
section 9 or section 10, he shall be liable to a penalty of ten thousand rupees for
every day during which such default continues, which may cumulatively extend up
to five percent of the cost of plot, apartment or buildings, as the case may be, of
the real estate project, for which the sale or purchase has been facilitated as
determined by the Authority.
63. Penalty for failure to comply with orders of Authority by promoter.—
If any promoter, 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 percent, of the
estimated cost of the real estate project as determined by the Authority.
64. Penalty for failure to comply with orders of Appellate Tribunal by
promoter.— If any promoter, 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 three years or with fine for every
day during which such default continues, which may cumulatively extend up to ten
percent of the estimated cost of the real estate project, or with both.
65. Penalty for failure to comply with orders of Authority by real estate
agent.— If any real estate agent, 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 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 Authority.
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66. 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 both.
67. 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
Authority.
68. Penalty for failure to comply with orders of Appellate Tribunal by
allottee.— If any allottee, who fails to comply with, or contravenes 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 per cent. of the plot, apartment or building cost, as the case may
be, or with both.
69. Offences by companies.— (1) Where an 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.
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(2) 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, or is attributable to,
any neglect on the part of any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall also be deemed to
be guilty of that offence and shall be liable to be proceeded against and punished
accordingly.
Explanation.—For the purpose of this section,—
(a) ”company” means anybody corporate and includes a firm, or other
association of individuals; and
(b) ”director” in relation to a firm, means a partner in the firm.
70. 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.
71. Power to adjudicate.— (1) For the purpose of adjudging compensation
under sections 12, 14, 18 and section 19, the Authority shall appoint in consultation
with the appropriate Government one or more judicial officer as deemed necessary,
who is or has been a District Judge to be an adjudicating officer for holding an
inquiry in the prescribed manner, after giving any person concerned a reasonable
opportunity of being heard.
(2) The application for adjudging compensation under sub-section (1),
shall be dealt with by the adjudicating officer as expeditiously as possible and
dispose of the same within a period of sixty days from the date of receipt of the
application:
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Provided that where any such application could not be disposed of within the
said period of sixty days, the adjudicating officer shall record his reasons in writing
for not disposing of the application within that period.
(3) While holding an inquiry the adjudicating 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 adjudicating 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 any be, as he
thinks fit in accordance with the provisions of any of those sections.
72. Factors to be taken into account by adjudicating officer.— While
adjudging the quantum of compensation or interest, as the case may be, under
section 71, the adjudicating officer shall have due regard to the following factors,
namely:—
(a) the amount of disproportionate gain or unfair advantage, wherever
quantifiable, made as a result of the default;
(b) the amount of loss caused as a result of the default;
(c) the repetitive nature of the default;
(c) such other factors which the adjudicating officer considers necessary
to the case in furtherance of justice.
CHAPTER IX
FINANCE, ACCOUNTS, AUDITS AND REPORTS
73. Grants and loans by Federal Government.— The Federal Government
may, after due appropriation made by Parliament in this behalf, make to the
Authority grants and loans of such sums of money as that Government may
consider necessary.
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74. Grants and loans by Provincial Government.— The Provincial
Government may, after due appropriation made by Provincial Legislature by law in
this behalf, make to the Authority, grants and loans of such sums of money, as the
Provincial Government may think fit for being utilized for the purposes of this Act.
75. Constitution of Fund.— (1) The appropriate Government shall constitute a
fund to be called the ‘Real Estate Regulatory Fund’ and there shall be credited
thereto,—
(a) all Government grants received by the Authority;
(b) the fees received under this Act;
(c) the interest accrued on the amounts referred to in clauses (a) to (b).
(2) The Fund shall be applied for meeting—
(a) the salaries and allowances payable to the Chairperson and other
Members, the adjudicating officer and the administrative expenses
including the salaries and allowances payable to be officers and other
employees of the Authority and the Appellate Tribunal;
(b) the other expenses of the Authority in connection with the discharge of
its functions and for the purposes of this Act.
(3) The Fund shall be administered by a committee of such Members of
the Authority as may be determined by the Chairperson.
(4) The committee appointed under sub-section (3) shall spend monies
out of the Fund for carrying out the objects for which the Fund has been
constituted.
76. Crediting sums realized by way of penalties to Consolidated Fund.— (1)
All sums realized, by way of penalties, imposed by the Appellate Tribunal or the
Authority, in the Federal territories, shall be credited to the Federal Consolidated
Fund.
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(2) All sums realized, by way of penalties, imposed by the Appellate
Tribunal or the Authority, in a Province, shall be credited to account as the
Provincial Government may specify.
77. Budget, accounts and audit.— (1) The Authority shall prepare a 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.
(2) The accounts of the Authority shall be audited by the Auditor 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
Auditor General of Pakistan.
(3) The Auditor-General and any person appointed by him in connection
with the audit of the accounts of the Authority under this Act shall have the 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, accounts,
connected vouchers and other documents and papers, and to inspect any of the
offices of the Authority.
(4) The accounts of the Authority, as certified by the Auditor-General
of 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 or, as the case
may be, before the Provincial or 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 appropriate Government,—
(a) a description of all the activities of the Authority for the previous year;
(b) the annual accounts for the previous year; and
(c) the programmes of work for the coming year.
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(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 or the Provincial Legislature, as
the case may be.
CHAPTER X
MISCELLANEOUS
79. Bar of jurisdiction.— No civil court shall have jurisdiction to entertain any
suit or proceeding in respect of any matter which the Authority or the adjudicating
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.
80. Cognizance of offences.— (1) No court shall take cognizance of any
offence punishable under this Act or the rules or regulations made thereunder save
on a complaint in writing made by the Authority or by any officer of the Authority
duly authorized by it for this purpose.
(2) No court inferior to that of a Judicial Magistrate of the first class shall
try any offence punishable under this Act.
81. Delegation.— The Authority may, by general or special order in writing,
delegate to any member, officer of the Authority or any other person subject to
such conditions, if any, as may be specified in the order, such of its powers and
functions under this Act (except the power to make regulations under section 85, as
it may deem necessary).
82. Powers to supersede Authority.— (1) If, at any time, the appropriate
Government is of the opinion,—
(a) 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
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(b) that the Authority has persistently defaulted in complying with any
direction given by the appropriate 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
(c) that circumstances exist which render it necessary in the public
interest so to do;
the appropriate Government may, by notification, supersede the Authority for
such period, not exceeding six months, as may be specified in the notification
and appoint a person or persons as the President or the Governor, as the
case may be, may direct to exercise powers and discharge functions under
this Act:
Provided that before issuing any such notification, the appropriate
Government shall give a reasonable opportunity to the Authority to make
representations against the proposed supersession and shall consider the
representations, if any, of the Authority.
(2) 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;
(b) all the powers, functions and duties which may, by or under the
provisions of this Act, be exercised or discharged by or on behalf of the
Authority shall, until the Authority is reconstituted under sub-section
(3), be exercised and discharged by the person or persons referred to
in sub-section (1); and
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(c) all properties owned or controlled by the Authority shall, until the
Authority is reconstituted under sub-section (3), vest in the
appropriate Government.
(3) On or before the expiration of the period of supersession specified in
the notification issued under sub-section (1), the appropriate 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 under clause (a)
of sub-section (2) shall not be deemed to be disqualified for re-appointment.
(4) The appropriate Government shall cause a copy of the notification
issued under sub-section (1) and a full report of any action taken under this section
and the circumstances leading to such action to be laid before each House of
Parliament or, as the case may be, before the Provincial or the Federal Legislature,
as the case may be.
83. Powers to issue directions to Authority and obtain reports and
returns.— (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 appropriate
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 appropriate Government and the
Authority as to whether a question is or is not a question of policy, the decision of
the appropriate Government thereon shall be final.
(3) The Authority shall furnish to the appropriate Government such
returns or other information with respect to its activities as the appropriate
Government may, from time to time, require.
84. Powers to make rules.— (1) The appropriate Government shall, within a
period of six months of the commencement of this Act, by notification, make rules
for carrying out the provisions of this Act.
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(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely:—
(a) information and documents for application to Authority for registration
under clause (m) of sub-section (2) of section 4;
(b) the form and manner of making application and fee and documents to
be accompanied with such application as under sub-section (2) of
section 9;
(c) the period, manner and conditions under which the registration is to
be granted under sub-section (3) of section 9;
(d) the validity of the period of registration and the manner and fee for
renewal under sub-section (6) of section 9;
(e) the maintenance and preservation of books of account, records and
documents under clause (b) of section 10;
(f) the discharge of other functions by the real estate agent
under clause (e) of section 10;
(g) the rate of interest payable under section 12;
(h) the form and particulars of agreement for sale under sub-section (2) of
section 13;
(i) the rate of interest payable under clause (b) of sub-section (1) of
section 18;
(j) the rate of interest payable under sub-section (4) of section 19;
(k) the rate of interest payable under sub-section (7) of section 19;
(l) the manner of selection of Chairperson and Members of Authority
under section 22;
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(m) the salaries and allowances payable to, and the other terms and
conditions of service of, the Chairperson and other Members of the
Authority under sub-section (1) of section 24;
(n) the administrative powers of the Chairpersons under section 25;
(o) the salaries and allowances payable to, and the other terms and
conditions of service of, the officers and other employees of the
Authority under sub-section (2) of section 28;
(p) the details to be published on the website as under clause (b) and
under clause (d) of section 34;
(q) the additional functions which may be performed by the Authority
under clause (iv) of sub-section (2) of section 35;
(r) the manner of recovery of interest, penalty and compensation under
sub-section (1) of section 40;
(s) the manner of implementation of the order, direction or decisions of
the adjudicating officer, the Authority or the Appellate Tribunal
under sub-section (2) of section 40;
(t) recommendations received from the Central Advisory Council under
sub-section (2) of section 42;
(u) the form and manner and fee for filling of appeal under sub-section (2)
of section 44;
(v) the manner of selection of Members of the Tribunal under subsection
(3) of section 46;
(w) the salaries and allowances payable to, and the other terms and
conditions of service of, the Chairperson and other Members of the
Appellate Tribunal under sub-section (1) of section 48;
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(x) the procedure for inquiry of the charges against the Chairperson or
Judicial Member of the Tribunal under sub-section (4) of section 49;
(y) the salaries and allowances payable to, and the other terms and
conditions of service of, the officers and employees of the Appellate
Tribunal under sub-section (3) of section 51;
(z) any other powers of the Tribunal under clause (h) of sub-section (4) of
section 53;
(za) the powers of the Chairperson of the Appellate Tribunal
under section 54;
(zb) the terms and conditions and the payment of such sum for
compounding of the offences under section 70;
(zc) the manner of inquiry under sub-section (1) of section 71;
(zd) 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;
(ze) the form in which and time at which the Authority shall prepare an
annual report under sub-section (1) of section 78;
(zf) any other matter which is to be, or may be, prescribed, or in
respect of which provision is to be made, by rules.
85. Power to make regulations.— (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,
namely:—
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(a) the form and manner of making application and fee payable herewith
under sub-section (1) of section 4;
(b) the form of application and the fees for extension of registration under
section 6;
(c) such other information and documents required under clause (f) of
sub-section (1) of section 11;
(d) display of sanctioned plans, layout plans along with specifications,
approved by the competent authority, for display under clause (a) of
sub-section (3) of section 11;
(e) preparation and maintenance of other details under sub-section (6) of
section 11;
(f) time, places and the procedure in regard to transaction of business at
the meetings of the Authority under sub-section (1) of section 29;
(g) the form, manner and fees for filing a complaint under sub-section (2)
of section 31;
(h) standard fees to be levied on the promoter, the allottees or the real
estate agent under clause (e) of section 34;
(i) 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
regulations.
86. Members, etc., to be public servants. — The Chairperson, Members and
other officers and employees of the Authority, and the Appellate Tribunal and the
adjudicating officer shall be deemed to be public servants within the meaning of
section 21 of the Pakistan Penal Code.
87. Application of other laws not barred.— The provisions of this Act shall be
in addition to, and not in derogation of, the provisions of any other law for the time
being in force.
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88. Act to have overriding effect.—The provisions of this Act shall have effect,
notwithstanding anything inconsistent therewith contained in any other law for the
time being in force.
89. Protection of action taken in good faith.—No suit, prosecution or other
legal proceedings shall lie against the appropriate Government or the Authority or
any officer of the appropriate Government or any member, officer or other
employees 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.
90. 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.
Provided that no order shall be made under this section after the expiry of
two years from the date of the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be
after it is made, before the Parliament.
STATEMENT OF OBJECTS AND REASONS
Keeping in view the consistent varying trends and fluctuations in the real
estate market of Pakistan, there is a dire need to establish a Real Estate Regulatory
Authority in order to regulate and promote the real estate sector in Pakistan. It will
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
adjudicating mechanism and also establishing the Appellate Tribunal for hearing
appeals against the orders or directions of Real Estate Regulatory Authority.
The bill is designed to achieve the aforesaid purpose.