Real Estate Regulatory Authority of Islamabad, Pakistan

The document titled “Real-Estate-Regulatory-Authority-of-Islamabad-Pakistan.pdf” is a comprehensive bill aimed at establishing the Islamabad Real Estate Regulatory Authority to oversee and promote the real estate sector in the Islamabad Capital Territory. The bill outlines the regulatory framework, functions, and responsibilities of the Authority, as well as provisions for the registration of real estate projects and agents, ensuring transparency, protecting consumer interests, and providing a mechanism for dispute resolution.

The bill, known as the Islamabad Real Estate (Regulation and Development) Act, 2020, extends to the Islamabad Capital Territory and came into force immediately upon enactment. It defines key terms such as “Authority,” “developer,” “real estate project,” and “allottee,” among others, setting the stage for clear regulatory oversight.

The Authority regulates and promotes the real estate sector, ensuring efficient and transparent transactions. It will protect the interests of buyers by overseeing the sale and purchase of plots, apartments, or buildings, and by regulating mega projects. The Authority will also establish an Appellate Tribunal to hear appeals against its decisions.

Developers and real estate agents must register with the Authority before advertising, marketing, booking, selling, or offering any real estate project for sale. Registration involves submitting detailed applications, including ownership documents, project plans, and financial details. The Authority has the power to grant, extend, or revoke registrations based on compliance with regulatory requirements.

Developers are required to create web pages on the Authority’s website, providing detailed project information for public viewing. They must adhere to sanctioned plans and project specifications, obtain necessary certificates, and ensure timely project completion. Developers are also responsible for forming allottee associations and transferring titles and possession of properties to allottees.

The bill outlines specific obligations for developers, including maintaining project records, providing essential services, and facilitating the formation of allottee associations. Penalties for non-compliance include fines and imprisonment. For example, developers working without valid registration can face fines up to ten percent of the project’s estimated cost and imprisonment for up to six months.

Allottees have the right to obtain detailed project information, claim possession of their property, and receive refunds and compensation if developers fail to deliver as per agreements. Allottees are also responsible for making payments as specified in the agreement for sale and participating in the formation of allottee associations.

The Authority is a body corporate with perpetual succession and a common seal. It has the power to hold and dispose of property, contract, and litigate. The Authority consists of six members, including representatives from the Pakistan Engineering Council, the Pakistan Council of Architects and Town Planners, and members nominated by the National Assembly and Senate.

The bill establishes the Federal Real Estate Appellate Tribunal to hear appeals against decisions of the Authority. The Tribunal consists of three members, including a Chairperson who must be a former High Court judge. The Tribunal has the power to impose penalties and ensure compliance with its orders.

The Federal Government is responsible for making grants and loans to the Authority. A Real Estate Regulatory Fund is established to manage all financial transactions, including government grants, fees, and penalties. The Authority is required to prepare an annual budget, maintain proper accounts, and submit to audits by the Auditor General of Pakistan.

The bill includes provisions for the delegation of powers, supersession of the Authority in specific circumstances, and the issuance of directions by the Federal Government. It also provides for the protection of actions taken in good faith and the power to remove difficulties in implementing the Act.

The Islamabad Real Estate (Regulation and Development) Act, 2020, represents a significant step towards regulating the real estate sector in Islamabad. By establishing a dedicated regulatory authority and appellate tribunal, the bill aims to ensure transparency, protect consumer interests, and provide a robust framework for the development and sale of real estate projects. The detailed provisions for registration, compliance, and dispute resolution underscore the commitment to creating a fair and efficient real estate market.