Govt considers reviving RERA to ensure transparency in real estate

March 03, 2025 (MLN): In response to growing concerns over fraudulent transactions, misreporting of property prices, and a lack of consumer protection in real estate dealings, the government is once again considering reviving the Real Estate Regulatory Authority (RERA) to introduce transparency and accountability in Pakistan’s property sector.

RERA aims to track misreporting, regulate property projects, and protect buyers and investors from deceptive practices.

The government passed the RERA Act in 2020, making it mandatory for property purchasers, sellers, and agents to register with the authority. Additionally, RERA’s approval is required before initiating any development project.

The authority aims to enforce strict registration requirements for real estate developers and brokers, ensuring that all property transactions are conducted under a legal and verifiable framework.

Key Features of RERA

• Pakistan’s federal government will select the chairman of RERA.
• Developers must obtain approval from key authorities for commercial and residential projects.
• RERA grants final approval for all real estate developments.
• Developers cannot operate a housing society without RERA’s consent.
• RERA has the authority to monitor developers as it can question developers about past project details.
• Developers must obtain a license before advertising their projects.
• Real estate agents involved in buying and selling must:
• Register with RERA before launching their business.
• Obtain a license to operate legally.
• RERA can revoke licenses if criteria are not met
• Marketing companies must seek RERA’s approval before operating in the real estate sector.
• The authority plays a crucial role in investment promotion:
• It protects the rights of investors and buyers.
• It acts as an independent consultancy for dispute resolution.
• It resolves conflicts without involving civil courts.
• RERA will also oversee the development of government schemes.

For years, Pakistan’s real estate sector faced significant challenges due to a lack of regulation. Fraudulent practices, money laundering, and unresolved legal disputes led to an unstable market. The government recognized the need for a regulatory authority to curb corruption and ensure fair dealings.

Previously, property transactions were largely unregulated, benefiting dishonest agents and sellers while leaving buyers vulnerable to fraud. Legal disputes often took years to resolve, draining both time and money. Many buyers and investors fell victim to scams, where deceptive agents would vanish after securing investments.

After RERA’s implementation, many of these issues will be addressed, as the authority is solely dedicated to real estate regulation. Its rigorous procedures ensure that both buyers and sellers are protected and that their property assets are secure.

RERA ensures all property transactions are conducted transparently, preventing fraudulent deals as it provides a structured mechanism for resolving conflicts, reducing the burden on civil courts.

Developers will be required to disclose project details upfront, allowing buyers access to verified listings and reducing scams.

Copyright Mettis Link News