Agent Login Form


Companies Act 2017- Rules & Regulations by SECP for regulating Real-Estate.


Acceptance of advances by real estate companies engaged in Real estate projects.
(1) Notwithstanding anything contained in this Act or any other law, any company which invites advances from public for real estate project shall comply with the provisions of this section in addition to those provided in the other provisions of this Act.
(2) A company engaged in real estate project shall-
(a) not announce any real estate project, unless it has obtained the approval of the Commission and all necessary approvals, permissions or NOCs etc., of the concerned authorities required as per applicable general, special and local laws, having jurisdiction over area under which the real estate project is being developed or undertaken to the satisfaction of the Commission and subject to such additional disclosure requirements as may be notified;
(b) not make any publication or advertisement of real estate projects, unless it has obtained the approval of the Commission and all necessary approvals, permissions or NOCs etc., of the concerned authorities required as per applicable general, special and local laws, having jurisdiction over area under which the real estate project is being developed or undertaken to the satisfaction of the Commission and subject to such additional disclosure requirements as may be notified;
(c) not accept any advances or deposits in any form whatsoever against any booking to sell or offer for sale or invite persons to purchase any land, apartment or building, as the case may be, in any real estate project or part of it, unless it has obtained the approval of the Commission and all necessary approvals, permissions or NOCs, of the concerned authorities required as per applicable general, special and local laws, having jurisdiction over area under which the real estate project is being developed or undertaken to the satisfaction of the Commission and subject to such additional disclosure requirements as may be notified;
(d) not accept a sum against purchase of the apartment, plot or building, as the case may be, as an advance payment from a person without first entering into a written agreement for sale with such person except nominal fee for application;
(e) maintain and preserve such books of account, records and documents in the manner as may be specified;
(f) deposit any sum obtained from the allottees, from time to time, in a separate escrow account opened in the name of the project as may be specified;
(g) comply with any directions notified by the Commission and accounting framework as may be notified; and
(h) do or not to do any act or activity as may be specified.

(3) For the purposes of this section the escrow accounts shall be dedicated exclusively for carrying out the project and no attachment shall be imposed on the payment of such escrow accounts for the benefit of creditors of the real estate company except for the purpose of project and the real estate company shall recognize its income in accordance with International Financial Reporting Standards notified by the Commission.
(4) The Commission shall provide copy of any returns or information submitted by real estate company free of cost to the concerned authority, on their request, to enable such authority to regulate real estate project under its jurisdiction in accordance with the applicable laws.
(5) The conditions laid down under this section shall be in addition to and not in derogation of requirement of law and concerned authority under whose jurisdiction the project is being undertaken by the real estate company shall continue to exercise its authority in a manner provided in the relevant law.
(6) Any person who contravenes the provisions of this section shall be guilty of an offence which is liable to a penalty of level 3 on the standard scale.
Explanations. For the purposes of this section the-
(i) expression “real estate project” shall include projects for the development and construction of residential or commercial buildings or compounds and shall not include other construction project;

(ii) expression “authority” shall include authority created or prescribed under any law which has powers to give permission for planning and Development of real estate project in specific area.

 

Ramiz Imtiaz
Linkers Realty
For any query contact +92-335-1369927 | 021-35639700-2


Popular Properties


Luxury Flat - Creek Vista

Apartment Size: 3248 Sq Ft, Approximately 360 Sq Yards, 3 Bed rooms, Car Parking Drawing + Dining Room, Prayer Area, Kids Play Area, Visitors lobby, High Speed Elevator Highly Secure. At Creek Vistas Apartment DHA Phase 8 Karachi one of the Best Project in Karachi with very safe and Secure Environment Own by DHA.


Frere Excellency

The Royal group has been a name synonymous with quality and credibility since its very inception. Our projects have always been received with great admiration for the innovative design, modern construction and exceptional planning. The Royal group strictly believes in winning and retaining the trust of all the valued customers through high quality work.


Property News


The Most Expensive Cities in the World to buy property

3 Beds Apartment | Only 15 Lac (Down Payment)
Clifton Icon

Upcoming