Real Estate Regulatory Authority Regulation and Development in Pakistan was founded in December 2013 by Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar. Further amendments were made in this ACT in 2015. This Act was extended to the whole of Pakistan. In 2017, the Act was again passed with amendments. Then in 2019, the bill was passed by the National Assembly and after that, the process of this law was completed and practically. Real Estate Regulatory Authority was established in Islamabad.
Background of the real estate regulatory authority
Almost three years ago, former Prime Minister Imran Khan directed the establishment of the proposed authority, fueling hopes that his government would realize the country’s true potential and boost economic growth in Pakistan’s unruly real estate market. is serious about organizing.
Establishing a strong regulatory framework was essential to create an enabling environment for a dynamic, safe and reliable real estate market.
The success of the government’s financial incentives for the construction industry was largely due to the establishment of a transparent regulatory framework and its early implementation in practice, but only about 30 percent of it could be operationalized.
Current Real Estate Issues in Pakistan
Pakistan’s real estate market largely operates on an undocumented economy and is plagued by a number of problems due to the absence of an effective regulatory framework. Due to lack of these regulations stakeholders, buyers, sellers, developers, tenants etc. always face problems.
Stakeholders often get caught up in long court battles over fraud and ownership battles, tenancy disputes, leading to an unclear business environment, which not only hurts investor confidence but also real estate in general. And public trust is also undermined.
More importantly, the tax collected from this sector is much less than its true potential because of the real estate business crisis over the last few decades due to high taxes and heavy transfer costs and restrictions. victim is –
Real Estate Regulatory Authority, Expectations and Expectations
In recent years, the government has taken several initiatives to document the sector and increase tax revenue. However, these initiatives have not met with much success due to the absence of a regulatory authority and policy framework. And neither could get much attention from the government –
Now that the government has changed and the facilities provided by the previous government to run the real estate business and the issuance of loans with low markup and easy terms for building false houses, low cost housing projects, The real estate business started running due to numerous facilities incentives and tax exemptions given to Naya Pakistan Housing Authority projects, society owners, builders and developers. The real estate business is in the worst crisis due to lack of clarity of regulatory authority. It is expected from the government that it should work together with all stakeholders and senior real estate agents and government and private sector. A bridge between Thus, the obstacles will be removed and strategies can be developed to strengthen the real estate market.
Once the government clarifies a transparent investment system, provides protection to our capital and regulates a real estate market through an effective institution, the sector will attract foreign investors and CZ Pakistanis and multinational companies. It will not be difficult to do.
The government should intend to use this bill as a tool for the management and promotion of the real estate sector in the country and should start implementing it.
A look at the key points of authority
Now let’s talk about the detailed points of this regulatory authority which are as follows.
The federal government will appoint the chairman of the regulatory body.
Registration with the authority is mandatory for real estate agents to buy and sell any type of property in Pakistan. The duties and rights of the real estate agents will be determined and the same two percent commission will be determined. The jurisdiction of the regulatory authority includes the sale of plots, houses and buildings. Rather, the government should also issue a letter of ownership of the property to avoid disputes
Before starting any kind of work on any real estate project, it is also necessary for the developers to get approval from the regulatory body. And the societies can only sell the plot or property which is occupied on the spot and not under selling- Safe investments can be made on the lines of our banking sector-
Developers have to submit all details related to their current and past real estate projects along with future plans to get approval from the regulatory body.
In case of violation, the regulatory body will have the power to cancel the license of any promoter and marketer.
The Real Estate Regulatory Authority will also protect the rights of the real estate agents as well as the persons who have been allotted the property.
Civil Courts shall not set aside for hearing cases relating to immovable property disputes which fall within the purview of the concerned regulatory authority. An Appellate Tribunal will be established in which stakeholders And will be included who will decide within 30 days to 90 days
Before starting work on any real estate project, developers must obtain approval from the regulatory authority. No developer or marketer shall be allowed to sell the property or advertise the project without approval.
A major advantage of a real estate regulatory authority in Pakistan would be that it would protect the rights of owners and buyers and real estate agents. Also, day-to-day trading disputes will be resolved in a professional and timely manner, allowing people to focus on making the most of their investments instead of wasting money.
The government of the time should pay special attention in this regard and the government of the time should take practical steps with a positive thinking for the recovery of the business in the background of the excellent traditions of public welfare so that the real estate business can be restarted and the real estate regulatory The authority should be operationalized on an emergency basis.
Zahid Bin Sadiq
Haji Zahid Bin Sadiq, the initiator of Bin Sadiq International Real Estate. Based on his incredibly efficient leadership, steadfast commitment to consistently producing a high level of achievement in real estate business.