Which Department is Responsible for Real Estate License in Pakistan?

Real Estate Market in Pakistan is one of the biggest business sectors in the country. As the real estate sector has immense capital involved in it, a lot of conflicts and inconsistencies keep on emerging in its market. Sometimes there are fake projects launched by fraudsters to loot gullible people, and at others, agents manipulate common folk to earn handsome profits for themselves and leave the poor people at loss. The amount of illicit actions in the real estate sector has grown to frightening proportions as a result of the enforcement of laws and a lack of norms and regulations. Therefore, the current administration set up the Real Estate Regulatory Authority a few years ago to address the problems. 


To keep the real estate industry of Pakistan in check, the government of Pakistan has established a regulatory authority by the name of the Real Estate Regulatory Authority (RERA). RERA is formed to use an appellate tribunal by the RERA to handle real estate-related issues. It will function as a consultant for the federal government on real estate development projects in addition to regulating and developing the market for real estate investment in Pakistan.


As RERA is a new institution and many people including investors are unaware of its functionalities and scope. That is the reason why we are writing this blog to enhance your knowledge of this governmental institution. 


Why Real Estate Regulatory Authority (RERA)? 

Real Estate Regulatory Authority (RERA) is established in Pakistan to regulate the real estate sector in the country. 


Pakistan's real estate sector is one of the largest and fastest-growing industries in the country, contributing significantly to the economy. However, despite its significance, the sector has been plagued by numerous issues including a lack of transparency, fraud, and exploitation of consumers. This is why Pakistan needs a real estate regulatory authority to address these challenges and bring stability to the sector.


The real estate regulatory authority would play a crucial role in regulating the industry by setting standards, enforcing rules, and protecting the rights of consumers. This would lead to increased transparency in the sector, making it easier for buyers to make informed decisions when purchasing a property. The authority would also help to tackle the issue of fraud, by ensuring that only licensed and registered real estate agents and developers can operate in the market.


In addition, the regulatory authority would provide a platform for resolving disputes between buyers and sellers, reducing the number of cases that end up in court. This would also promote a fair and just real estate market, where consumers are protected from exploitation and abuse. Furthermore, a real estate regulatory authority would help to improve the quality of construction and ensure that buildings meet safety and environmental standards, providing peace of mind for both buyers and residents.


The creation of a real estate regulatory authority in Pakistan is vital for the growth and stability of the sector. It would bring transparency, accountability, and fairness to the market, and protect consumers, making it easier and safer for them to invest in the property market.

Read More: Is Licensing Required for Real Estate Dealers in Pakistan?

Key Features of RERA 

The following are the key features of RERA: 

  • The federal government has the authority to appoint the chairman of the society. 
  • Real estate agents have to be registered with RERA.
  • Residential and commercial project developers must obtain permits from relevant authorities, including RERA. 
  • Approval must be requested before the project can begin. Developers are asked to submit details of current and past projects.
  • Real estate marketing companies must obtain approval from RERA before marketing real estate projects.
  • RERA reserves the right to terminate licenses from property development and marketing companies if it determines that they are not complying with relevant policies and standards. 
  • RERA is responsible for protecting the rights of property owners and real estate brokers involved in real estate transactions.
  • RERA acts as an advisor to government-sponsored development programs
  • RERA handles legal matters. Disputes will not be pursued in civil and appellate courts within the jurisdiction of RERA.
  • The Central Advisory Board includes representatives from various National Housing Authority (NHA), Naya Pakistan Housing Authority (NPHP), Ministry of Home Affairs, Ministry of Justice, and Ministry of Finance. 


Functions of the Real Estate Regulatory Authority (RERA)

RERA has to:

  • Guide the real estate industry on government matters
  • Revise laws regarding property transfers in Pakistan
  • Address customer complaints
  • Settle land disputes
  • Oversee the property system in Pakistan
  • Introduce reforms to benefit property stakeholders
  • Register real estate marketers, developers, and agents
  • Ensure compliance in the property industry
  • Impose fines on violators after inspections.


Real Estate Regulatory Authority is responsible for licensing Real Estate in Pakistan. It looks after the real estate market of Pakistan and stays active to keep the market scam-free.

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