Laying The Foundations For A Bright Future In Bahrain Real Estate

New resolutions have been introduced to boost investor confidence and fulfil an efficient and sustainable real estate market in the Kingdom of Bahrain. Decision No. 1 of 2018 Concerning Licenses of Developers, Brokers and Sales Agents ('Decision No. 1') and Decision No. 2 of 2018 Concerning Licenses for Real Estate Developments Projects ("Decision No. 2") were issued in the Official Gazette and came into force on 2 March 2018.

After the successful launch and operation of the Real Estate Regulatory Authority ('RERA'), a regulatory body now oversees the real estate sector in the Kingdom of Bahrain. Decision No. 1 and Decision No. 2 are the first of a number of regulations, to be issued by RERA over the coming months in line with Law 27 of 2017 Concerning the Promulgation of the Real Estate Sector Regulation Law ('Real Estate Law').

Decision No. 1

Pursuant to Decision No. 1, the activities of developers, brokers and sales agents ('Applicant') cannot be undertaken within the Kingdom of Bahrain without obtaining an authorization issued by RERA ('License'), which can be obtained online at http://www.rera.gov.bh/en. Decision No. 1, also prohibits an Applicant who has been convicted of a crime or declared bankrupt (or if a corporate entity, where its directors have been declared bankrupt) without rehabilitation from obtaining a License.

Decision No. 1, lists the information required from an Applicant. Notable requirements include 3 years audited accounts and the previous history of a developer (excluding new developers). In relation to a broker, evidence of 3 years' experience together with the successful completion of examinations and training courses set by RERA are required.

RERA will reject or approve an application to obtain a License within 5 days of receipt and if a decision has not been reached by RERA with the 5-day time limit, the application will be deemed to have been unsuccessful. A License shall be valid for 1 year and is required to be displayed in a visible place at an Applicant's place of work and any application to renew the License must be made not less than 60 days of its expiry.

RERA have the authority to revoke a License if:

an Applicant has provided false information; a condition of the License has been breached; the License has been passed onto a third party; an Applicant's Company Registration is revoked; or the legal personality of an Applicant has changed without RERA"s consent. RERA has provided some leeway for existing...