The Securities and Exchange Policy Board of the Securities and Exchange Commission of Pakistan (SECP) and Competition Commission of Pakistan (CCP) have recommended establishment of 'Real Estate Regulatory Authority' to work as a regulatory body to coordinate and advise all efforts of the government regarding the development of real estate sector. In its last meeting at the SECP, SECP Policy Board had recommended establishment of a Real Estate Regulatory Authority to oversee the real estates sector.
At present, the Federal Board of Revenue (FBR) has established a Directorate General Immoveable Properties (IMP), which may act as FBR's specialised agency on all matters relating to real estate/immoveable properties, ie, open plots, constructed properties both residential, commercial & industrial, agricultural lands, housing schemes/projects/societies/towers/chains of luxury apartments and other related similar assets.
According to the report of CCP on real estate sector, the CCP has recommended establishment of a Real Estate Regulatory Authority to act as a real estate regulatory body to coordinate and advise all efforts of the government, regarding the development of real estate sector.
The relevant authority should have the following functions and powers:
Firstly, registration and regulation, pre-registration/licensing, and renewal of licence of developers, promoters, project managers and real estate agents/brokers/dealers.
The relevant authority should have the powers of defining and issue eligibility criteria and qualification for market professionals and intermediaries and code of conduct, the CCP said. It should be a standard setting body for issuance of uniform standards, code of practice, and regulations for smooth and transparent conduct of real estate sector, the CCP said.
The powers and enforcement actions of the proposed body included real estate sector specific consumer complaint handling system and inspections, inquiries, investigations and subsequent enforcement actions including, penalties and restrictions. The relevant authority should have the powers of a quasi-judicial body. The proposed authority shall have the same powers as are vested under the Code of Civil Procedure, 1908 for the resolution of land/property disputes. In order to facilitate the abovementioned functions, it is imperative that it is also given the powers of acting as a quasi-judicial body, the CCP recommended.
The relevant authority should perform functions of training and certifications of brokers and agents. It should be promoting the technical education of brokers and dealers and training and certification of real estate market professionals including appraisers and valuers.
The relevant authority should have the powers of establishment of database and its management. A national level computerised database should be developed which should contain all information regarding a property including exact location comprised upon khasra, aks-e-shajra, etc, details, details of owners of the property like fard-e-malkiat, etc, details of the real estate agent who was involved in facilitation of the transaction, who should also be held responsible in case of a dispute and publish and maintain a website/database of all records of real estate sector, with an updated status on registration, title, regulatory NOC, etc, and conversion of conventional land record system on modern day's information technology based systems, the CCP said.
Referring to the authority in Dubai, the CCP said that the Real Estate Regulatory Authority (RERA) is a government agency that was formed in 2007 as a part of Dubai Land Resources Department. It's a head agency which forms, regulates and authorises the real estate sector in Dubai while providing the transparency and effectiveness of legal framework. The agency has its own financial and administrative independence with full legal authority to regulate the real estate sector in Dubai. It provides many services to clients in Dubai extending to its role in planning, organising and evaluating operations related to real estate licences, and the organisation and development of real estate activities, as well as a commitment to monitor projects financially and technically, in order to protect investors.
The responsibilities of RERA include: Licensing all real estate activities, managing real estate developers' trust account, licensing real estate agents, regulating and registering rental agreements, regulating and supervising the owners associations, regulating real estate advertisements in the mass media, regulating and licensing real estate exhibitions, and publishing studies for the sector.
The RERA also informs people on regulatory acts when buying and renting the real estate in Dubai. Land resources can be in security until the building up is finished. The land can be divided but only after a certain approval according to local planning. The land given cannot be neither bought nor sold until the written direction of Sheikh Mohammed Bin Rashed Al Maktoum is received. According to the policy of confidentiality, the Dubai Land Department doesn't publish any information about its clients. Information about the land conditions can be given when the Dubai Land Department studies the condition of Land relations. In November 2013, Dubai Land Department launched an online real estate portal designed for sale, rental and auctions of properties, as well as for exchanging private and public real estate information.
In case of India, the CCP said that the Real Estate (Regulation and Development) Act, 2016 was passed in India with the aim to promote planned and healthy real estate development of colonies and apartments. The act was made in order to protect the consumer's interest on one hand and to facilitate smooth and speedy urban construction on the other. The Act establishes Real Estate Regulatory Authority in each state and union territory. It includes protection of the interests of the stakeholders, accumulating data at a designated repository and creating a robust grievance redressal system. To prevent time lags, the authority has been mandated to dispose applications within a maximum period of 60 days; and the same may be extended only if a reason is recorded for the delay. Further, the Real Estate Appellate Authority (REAT) shall be the appropriate forum for appeals.
About the UK, the CCP report said that the HM Land Registry is a government department created in 1862. It operates as an executive agency and a trading fund. The running costs are covered by the fees paid by the users of its services. Within England and Wales, the HM Land Registry is responsible: to provide a reliable record of information about ownership of and interests affecting land and property; to provide owners with a land title, guaranteed by the government; and to provide a title plan that indicates general boundaries.
The United States of America has 52 Real Estate Regulatory Authorities in all of their states. Most of these authorities under local state laws supervise the registration, surveillance and monitoring, inspections, consumer complaint handling, setting licensing/ registration eligibility standards for industry professionals and intermediaries, and promoting certification and training opportunities with different industry supported associations or real training institutes, the CCP report added.
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