Chapter 5: Public Sale Projects


5-1.1.   Application for NOC.

   A Developer applying for NOC to the Authority shall furnish the required Documents and particulars in Form (…..) as appended to Regulations, dully signed by all concerned.

5-1.2.   Contractor All Risk Insurance Policy

The Developer shall also submit Contractor All Risk Insurance Policy from the insurance Companies approved by Authority in respect of the project under clause 12(7) of Ordinance. Said policy shall also cover the losses arising … defects design or due to earthquake and shall be valid up to 12 month of maintenance period after issuance of Occupancy Certificate or Physical handing over of possession which over is later.

  • Undertaking of the Developer/Builder/Professional.

   The Developer, his builder and his Architect/Engineers shall submit undertaking along with the From (…. ) the under taking of the Developer shall be on stamp paper in accordance with format specified in form DNP-1, (Annexure(I) while the builder shall submit undertaking accordance with the format specified in Form (….).

The undertaking of Architect/Engineer shall be in accordance with format as provided in (…..) form.

  • Determination of Price and /cost Estimate.

A developer shall submit the Selling Price of various units for registration purpose with details specification and work program for the project specified in Form (……) respectively.

This price shall quoted in all the advertisement and promotion literate published by the developer, no escalation in the cost shall be allowed except where inflation (as defined by the Ministry of Finance) is about double digit for particular year in such case excess over the double digit shall be the percentage of price increase. No escalation cost shall be granted to the developer who has failed to complete the project in time.

5-1.5.   fee for NOC

A Developer shall pay to the Authority a fee for the “NO OBJECTION CERTIFICATE FOR SALE” as per provision of Ordinance. Authority to publish a Notice on the salient features of each public sale project (name of project, address, builder, office address architect/engineers, no of floors no. and sizes of shops. flats/offices, compulsory open spaces date of completion model agreement etc.) within seven days of issuance of “NOC for Sale”.

5-1.6.   Security Deposit.

5-1.6.1.      The Developer shall deposit cash security deposit of a bank guarantee equivalent to 2% of the cost of  the project with the Authority to be held in a separate account which shall be utilized as defined in Clause 5-1.6.3. In addition, in case of delay in completion of the project, where such delay has not been condoned as per clause 5-1.18, deduction from the security shall be made in proportion to the extent of the delay. This amount or lesser amount shall be refunded in the successful completion of the project and after obtaining the Occupancy/Completion Certificate and the expiry of the maintenance period as enunciated in NOC granted by the Authority.

5-1.6.2       The 2% security deposit will be paid in four (4) equal installments as under.

i).        At the time of collection of the NOC for sale.

ii).       On the approval but before collection of plinth certificate.

  • On the completion of the casing of roof slab/building or the commencement of internal plaster, whichever is earlier?
  • On the commencement of the internal development works of the project.
  • Authority shall have the right to utilize the Security Deposit to remedy any fault/defect in the construction of the building after receiving complaints /notice and if the developer fails to rectify the same by himself or violation of any condition of the NOC granted by the Authority that come to light at the time of the completion of the project or in case the builder/developer fails to comply with any of the following:-
  1. To construct the building in accordance with the design specifications agreed with the purchaser and approved by the Authority.
  2. To complete the building on time as per terms of agreement with the purchaser and /or as provided in these Regulations or Ordinance amended up-to-date;
  3. To provide services as per agreement with purchaser;
  4. To obtain Occupancy Certificate from the Authority;
  5. If Developers is found to be indulging in or involved in any un-lawful activities pertaining to the project.
  6. To rectify defected after occupation, if the Developer fails to act, as per Clause 5-1.6.4, (provided the Authority is satisfied that the Developer is at fault) and that such a matter has not arisen due to misuse, mischief of the allottees and is subject to normal wear & tear.

5-1.6.4       Any such defect or violation shall have to be made good by the Developer at their own cost and risk and the cash security deposit, shall not absolve the Builder/developer of his responsibility to the project as per condition of NOC and the agreement made with the allottee or as enunciated in clause No. 5-17.4.

5-1.6.5       this security deposit shall not, in any way, prejudices the Authority’s rights under these Regulations to initiate any other proceedings or action in the event of violation of any of these Regulations.

5-16.6.       The deposit shall be released to the Developer after one year of obtaining Occupancy Certificate but after meeting all Developer’s liabilities as cleared by the Authority defined in Clause 5-1.27

5-1.7.         Application Form for Allotment.

                        After the receipt of No Objection Certificate from the Authority the Developer shall get filled an application form specified as Form (….   ) from a person intending to book a unit in the project.

  • Execution of Sub-lease

                        A unit shall be offered for sale on cash/cash-cum-loan basis as per Schedule of Payment described in ( …….) Sub lease shall be executed as per sale and allotment conditions, in favor of allottee, before delivering the possession of the unit. The allottee shall own the building structure of his unit and shall proportionately share the price/rent of land of the unit with other allottees of the project.

5-1.9.               Confirmation of Allotment

The allocation of the unit shall be confirmed by the Developer through an allotment letter to the allottees as specified in Form (…..) within 15 days of booking. The allotment letter shall specify the unit number, floor, area of the unit, general facilities fittings and fixtures with their make and material, the total price of the unit and details of other charges together with the key plan of unit in line with key plan approved by the Authority at the time of NOC.

  • Agreement with Allottee

Within 15 days of the issuance of allotment letter and before calling other installments in respect of the unit the Developer shall in pursuance of Clause 12(4) of the Ordinance, execute an Agreement with the allotees as specified in (…).

  • Payment of Installment
    • The payment of installments shall be made by the allotees strictly according to the Schedule of Payment (……) attached to the agreement. In case of failure a 15 days’ notice shall be issued by Registered A/D or registered courier services on the last given address and if the allottees fails to make payment within the above period, another notice shall be issued by the Developer extending the period up to another 30 days. In case of further failure, a cancellation letter shall be issued to the allottee, a copy of which shall be endorsed to the Authority. The Developer shall not rebook the cancelled unit within 30 days of receipt of copy of cancellation letter by the Authority; provided that developer shall published the cancellation notice in the week end addition of two leading newspapers (English, Balochi & Urdu) in the classified advertisement section in a bold format under the heading of cancellation of flat/unit.
  • In response to the above cancellation notice, if the allottee intends to continue the booking the Developer shall restore the allotment, after receipt of pending payment and charging the unpaid installment.
  • If no response to Authority is received from the allottee during the said period; the cancellation of the unit shall be confirmed automatically. In case the cancellation is made before allocation, the Developer shall refund the total amount paid till that time by the allottee within 30 days. However, after allotment of unit 4% of the amount paid that far shall be retained by the Developer, and the rest of the mount shall be refunded within 30 days.


  • In spite of failure to make payment of installments in time, if the Developer does not resort to cancellation as provided in these Regulations, the Developer may or may not charge markup on the unpaid installments at the prevailing bank rate and the allottee shall be informed accordingly.
  • Loan Component.

5-1.12.1.    The developer may arrange the availability of loan, if the project proposed contains a loan component as mentioned in the Schedule of Payment (……)

If the loan is refused or reduced due to any reason whatsoever by the loan giving agency the allottee shall pay the loan amount from his own resources. However extra time of at-least six months shall be given to allottee to pay the loan component to the developer.

5-1.12.2.    The allottee must complete all documentation for lease and loan within 120 days of booking as written in the agreement and a reminder shall be issued by the Developer. The repayment of the loan installments shall be made by the allottee/borrower to the loaning agency as and when if falls due as per rules of the relevant agency. The allottee / borrower will abide by the arrangements of loan and will follow rules and regulations and orders and instructions of the loaning agency.

5-1.13.             Documentation and Connection & Meter Charges.]

                        Documentation charges for sub-lease and loan, and external services connection charges for gas, electricity, sewerage and water shall be paid in proportion to the unit area in accordance with the actual  payment made to these agencies plus 15% as service charges for their respective services. This amount should be paid at the time of deposit of challan. In case any allottee fails to make this payment he shall pay mark up on the amount at the prevailing Bank rate.

  • Minor Changes.

The building shall be constructed by the Developer strictly according to the approved building plans and specifications. However minor changes, if any, within the unit in plan or specification may be made mutual arrangement between Developer and allottee subject to the conditions that these doe not contravene any of the Regulation and provided that such changes do not effect the structure of the building and do not usurp the right of the other allottees.

  • Clearance of Dues for Execution of Sub-lease.

                        The sub-lease of the unit shall be executed in favor of the allottee before handing over the possession of the unit, provided the allottee has made payment of outstanding amount up to that time.

5-1.16.             Timely Completion of the Project.

                        The developer shall maintain steady progress of work irrespective of the situation of payment by the individual allottees and availability of loan by the loan giving agency. The Developer shall, if needed fulfill the obligation of the timely completion of the project by arranging the deficit finances from his own resources. The Developer shall inform the allotees every three months regarding progress of the project.

5-1.17.             Withdrawal of allotment.

The allottee if he/she so wishes can withdraw his/her allotment of the unit by surrendering the original letter of allocation /allotment to the company and in this event the Developer will refund to the allottee the amount deposited till that time. In case the cancellation is made before allotment the developer shall refund total amount paid by the allottee till cancellation within 30 days. However, after the allotment of unit 4% of the amount paid that far, for the unit, shall be retained by the Developer and the rest of the amount shall be refund within 30 days.

5-1.18.             Extension in Date of Completion.

                        Extension in Date of Completion shall be allowed to a developer if he produces documentary proof that more than 50% of his client have defaulted in payments of 2 or more installments for over 6 months period the developer shall also submit consent of at-least 50% of the allottees while applying for the extension in time prescribed in form    ( ….. )

5-1.19.             Sublet & Transfers of Allotment.

The allottee can sub-let, transfer or sell his unit to any one, with prior written permission of the Builder/Developer, who shall allow transfer on receipt of all outstanding dues up to that time and transfer fee of 0.5% of total price of unit. However, no transfer fees shall be charged in case the transfer is made within 3 months of allotment.

5-1.20.             Physical Possession and care-taking charges.

5-1.20.1.    The Developer shall, after obtaining occupancy Certificate from the Authority, which shall include the provision o electric, gas, water and sewerage services, issue intimation letters to the allottees. The allottee shall take over possession of the unit within 30 days of receipt of such letter from the builder. In case of delay the Developer shall charge per month as specified in the agreement from the allottee for care taking of the unit in good condition.

5-1.20.2.    In case of occupancy/completion certificate is issued by the Authority on the basis of clause No. 3-2.15.3. The operation and maintenance of generator will be in a manner that 30% will be born by the builder and 60% by the occupied units and 10% by the unoccupied units this arrangement is seized after the commissioning the utilities by the agencies.

5-1.21.             Delay in completion and Compensation for Period of Delay.

The builder/Developer shall complete the project and hand over physical possession of the unit complete in all respect to the allottee by the time specified by the Authority, in case of delay in handing over possession the Developer shall pay mark-up to the allottee at the rate of prevailing bank rate on the total amount paid, for the period of delay calculated from the completion time specified by the Authority or extension made thereof.

5-1.22.             Abandonment of the Project.

                        If for any reason, the project is abandoned by the Developer, the Developer will refund the total amount received from the purchaser with mark up at the prevailing bank rate on the same, for the whole period of retention of the money, along with an additional compensatory amount equal to 10% of the amount received from the allottee up-to date against the booked unit, within 60 days of the announcement to the effect of the abandonment of the project.

5-1.23.             Defect liability.

The developer shall assume Defect liability of the unit for a period of 12 months in respect of structure and six months in respect of fixture from the date of offering possession of the unit after obtaining Occupancy Certificate, and all defects shall be rectified to the satisfaction of the as per provisions of the Ordinance amended as amended from time to time.

5-1.24.             Sale or Transfer of the Project.

                        No Developer shall sell or transfer the whole project to any one for sale, or transfer the units of the project to the general public, unless prior intimation to the Authority is given and No Objection from the 2/3rd majority of the allottees is obtained. The new Developer shall assume all responsibility and liabilities of the agreement made between outgoing Developer and allottee, in addition the new builder/developer must get the previous NOC issued by the Authority revised/revalidated in his favor.

5-1.25.             Formation of Association & Maintenance of Utilities.

The maintenance of the services and amenities at the project will be finally looked after by the allottees that would form an Association to handle the affairs of the project. The rights of easement, appurtenances and other common rights shall be transferred to such Association/Society especially the cleanliness outside the project, should be up to the meridian of the road.

  • Settlement of Disputes.

                        All disputes of the Builder/Developer and allotees shall be referred to the Authority. Any appeal against the decision made by the authorized officer of the Authority may be filed before the Chief Controller of Buildings and thereafter any further appeal shall be made to an Appeal Committee consisting of the Chief Executive of the Authority, Chairman PEC or his representative of Association of Builders & Developers (ABAD) and the representative of concerned Authority. The decision of this committee shall be final and irrevocable.

5-1.27.             Instruction of the Authority.

            Besides the above Regulations, the orders and instructions of the Authority in accordance with these Regulations issued from time to time in this regard shall be followed strictly.