The federal cabinet has passed real estate development authority bill for the establishment of Real Estate Regulatory Authority (RERA).
Background of the Real Estate Regulatory Authority:
A few months earlier, Prime Minister Imran Khan put orders to establish real estate authority that showed deep concern of the Prime Minister to rectify the disorganized market of real estate. It was mandatory to establish a strong regulatory authority to make real estate market dealings secure and trustable.
Current problems of real estate in Pakistan:
The real estate market of Pakistan has been working on an undocumented economy and facing serious issues due to lack of an effective regulatory framework. Stakeholders, buyers, sellers, developers, and renters have objected to the lack of principle to regulate this sector.
Stakeholders often stuck in court to resolve fraudulent ownerships and renters problems that develop an unofficial business environment. It not only affects investment trust but also puts a negative impact on real estate investment trust.
Moreover, an important point is that the tax received from this sector is much low than its actual value because, from the last few decades, real estate has become an unofficial shelter to collect illegal money.
Expectations from real Estate Regulatory Authority:
In recent years, the Government has taken several steps to make this sector secure, documented, and receive increased taxes. But, these steps could not succeed due to lack of regulatory authority and policy framework.
Now, with the establishment of real estate regulatory authority, it is expected that it will work with all stakeholders and will become a connection between Government and relevant organizations to remove obstacles and to prepare the right strategy to strengthen the real estate market.
If the Government successfully establishes a clear investment system, and successfully controls the real estate market then it will become easier to attract foreign investors/investments. The government intends to use this bill as an instrument to bring discipline and balance to real estate sector.
Main Points of Real Estate Regulatory Authority:
- Federal Government will choose the Chairman of the regulatory body.
- Real Estate agents are bound to keep data with the authority for property selling.
- Before starting any real estate project, developers are required to take approval from the regulatory body.
- Developers are required to submit all their real estate project details.
- Authority can cancel the license in case of not obeying the laws.
- Real estate regulatory authority will also protect the rights of those people to whom the property is being allotted along with real estate agents.
- Civil courts will not take those cases that come under the relevant regulatory authority control.
- Without the approval, neither any developer not any marketer will be allowed to sell the property or advertise the plan.
- The major benefit of the Real Estate Regulatory Authority in Pakistan is the protection of both buyer and seller rights. Moreover, day to day buying and selling problems can be solved immediately that will help people to invest more instead of wasting money.Looking for investments that are approved by concerned authorities and promise good profits? Call us today at 0348 111 4 333 or click here