Regulation/Licensing of Property Sector: RERA

[mahmoodsalman (PAKISTANI-1)]

1. There is a desperate need to establish "Real Estate Regulatory Authority" (RERA);

2. RERA should register and license all property dealers/brokers/consultants/agents/developers etc;

3. There should be a sophisticated regulatory regime for the real estate sector with detailed rules and regulations providing for offences and penalties;

4. The RERA Rules should expressly prohibit Juice-Taking i.e. Dealers quote a low price to Sellers and high price to Buyers. This way they pocket the difference which is in addition to their percentage commission.

5. The RERA Rules should also regulate and determine percentage of commission for residential and commercial properties. Speculation should be closely monitored.

6. There should also be a RERA Tribunal which should hear complaints. If a dealer has violated any important rule, he should be imposed a fine of 200% of the amount involved. Second offence should lead to suspension of license and a third offence should lead to cancellation of license by the Tribunal.

7. A special department should be established in RERA for enforcement and to protect Overseas Pakistanis from fraud.

8. Societies which sell plots on map without acquiring the land should also be fined.

Etc.

Any other suggestions???

[salmanmahmoodkhan (Baloch)]

Yes it is needed to save investors from fraud when they try to invest their life savings in a plot.

[salmanqatar (Pardesi)]

Yes there is more investment coming into real estate than any where else but no regulator for this sector. Why?

[a_m5 (arshad)]

I agree it is important to have a regulatory authority not only to regulate dealers but also housing schemes and developers. All money of investors should be kept in escrow account. This will increase confidence of investors and more investment will follow into Pakistan from abroad.

[mahmoodsalman (PAKISTANI-1)]

You are right Arshad bhai. If we have a very effective regulator to prevent fraud and insecurity, it will become very easy for many overseas Pakistanis to send dollars to Pakistan for investment in real estate.

At the moment they remain suspicious and doubtful about possible scams and frauds. If they know that a particular society is listed as OK by the Regulator and the Dealer has a valid license, they will feel much more comfortable.

This will increase foreign investment in the real estate sector.

Insha-Allah.

[salmanqatar (Pardesi)]

But when?