Pakistan’s real estate industry is one of the fastest growing industries in Pakistan, and generates a billion dollar revenue. Keeping a check on this industry is extremely vital to the growth of our economy, and that’s where the Real Estate Regulatory Authority (RERA) comes in.
To deal with the rising illegal activities in the real estate sector of Pakistan, The Government of Pakistan initiated Real Estate Regulatory Authority (RERA) a couple years back. However the concept of a regulatory body in the real estate sector of Pakistan is still new and there seems to be a lot of confusion amongst realtors related to it.
To help you out, we have prepared a guide for you, where we outline what the body entails and its importance.
There is a lot to learn about the RERA, and we can help with that!
So, without any further ado, let’s move ahead!
Why Do We Need the Real Estate Regulatory Authority?
As mentioned earlier, the real estate sector of Pakistan is a billion dollar generating industry. Whenever, there is a huge amount of money involved some discrepancies are bound to occur it can either be due to human error or some corruption. Whatever the reason might be, the need for a regulating body rose, and thus the Government of Pakistan formed the Real Estate Regulating Authority.
There are various issues that an individual normally faces when dealing with the real estate sector of Pakistan. One small act can take years to settle, due to shady practices and real estate agents with lack of knowledge about the industry. Many agencies just see profit when they look at a customer. They look to fulfill their short term needs rather than striking a good deal and making a long term customer.
These issues not only waste the precious time of the parties involved. But they can also lead to the freezing of one’s assets and drive away potential investors.
The step to form the authority was taken so that the real estate sector can formulate and maintain consistent policies. RERA will also make sure that these policies are being implemented, which will most definitely give our real estate sector a much needed push in the right direction.
Another thing the Real Estate Regulatory Authority would do is protect the rights of the parties involved. Whether it is a buyer, a broker, a seller or someone who is looking for a place to rent. Every dispute will be handled and solved according to the policies, no personal favors will be entertained.
This would save both time and money, and also encourage individuals to take part in real estate deals.
What Do We Know About RERA?
There isn’t a lot that we know about this regulatory body; however there are certain things that the report tells us, which includes:
- The chairman of RERA will be appointed by the federal government.
- It will be mandatory for the real estate agents involved in selling, to register themselves with RERA.
- Before initiation of any project, the developers will need to seek approval from the authorities.
- The developers will need to submit details regarding all their past and current projects.
- The bodies marketing any real estate project will need approval from RERA.
- RERA can cancel the real estate licences of the bodies developing or promoting any project, if they are found to be violating any policy.
- The governing body will protect the rights of the owners of the property as well as the real estate agents associated with the property.
- Encourage real estate investment.
- Consult on development schemes sponsored by the government.
- Legal cases will not be pursued in the Civil Courts, rather an appellate tribunal will be formed that will handle cases falling under the jurisdiction of RERA.
- A Central Advisory Council will be formed, with representatives from National Housing Authority, Naya Pakistan Housing Authority, Ministry of Interior, Ministry of Finance and Ministry of Law and Justice.
What We Expect From RERA?
Several attempts have been made to form regulatory bodies, to form laws and oversee the implementation of these laws. Here are a few expectations that the real estate sector holds from RERA:
- Guide government related to the real estate sector
- Update laws regarding transfer of property in Pakistan
- Manage customer complaints
- Resolve matters related to land disputes
- Regulate the system of transfer of property
- Form a new reformative structure to aid the real estate stakeholders
- Register real estate agents, developers and the marketing agencies
- Set standard practices for the smooth running of the real estate sector
- Inspect and charge fines to the ones violating the rules and regulations
We hope that RERA will also clearly define the roles and responsibilities of a landlord in Pakistan.
This will bring about the evolution for Pakistan’s real estate sector. The regulatory authorities will make sure all the activities are according to the law. It will also look after the entire process such as the pricing. Our real estate sector will get a grip and will become the reason for a better market. There would be some changes with time, but to witness them we have to wait till RERA starts operating. It is important to make sure the real estate sector has a true meaning of justice.
This brings us to an end on our blog about the Real Estate Regulatory Authority of Pakistan. All that we know about, the changes it can bring as well as what is expected from it.