His Excellency Shaikh Mohammed bin Khalifa Al Khalifa, Chief Executive Officer of the Real Estate Regulatory Authority (RERA), held a press conference on Tuesday 27th February 2018 for the occasion of the implementation of Law No. (27) of 2017 with respect to the Regulation of the Real Estate Sector issued by His Majesty King Hamad bin Isa Al Khalifa. This law which comes into effect on 1st March 2018 is of great importance in enhancing the performance of the real estate sector in the Kingdom of Bahrain. His Excellency said at the conference that RERA will be ready in early March to receive customers and dealers in this sector. All administrative and IT systems are up and running, ready to receive all types of real estate related requests and applications.
He stressed the need for all real-estate related professionals to obtain the necessary licenses, including property developers, brokers, valuers and property managers. Licenses should also be obtained for real estate development projects as well as for advertising them. When applying for a license, all requirements should be fulfilled, especially those related to escrow accounts. Applications can be submitted online through RERA's website, www.rera.gov.bh.
HE stressed the importance of the role and support of the Government Executive Committee headed by HRH Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, which contributed to expediting the issuance of the Real Estate Regulation Law and the establishment of the Real Estate Regulatory Authority (RERA) that came to being to embody the vision of His Majesty King Hamad bin Isa Al Khalifa to enhance the role of the non-oil sectors and maximize their contribution in a sustainable manner to the national economy, which will in turn benefit the country, all citizens and development in the Kingdom in general. The real estate sector comes on the top of the list of government priority initiatives, it receives strong support from the government headed by His Royal Highness Prince Khalifa bin Salman Al Khalifa, Prime Minister. The development of this sector is in line with efforts to enhance the contribution of non-oil sectors to the national economy.
He added that the executive management of RERA receives full support from the Board of Directors under the chairmanship of HE Shaikh Salman bin Abdullah Al Khalifa, President of the Survey and Land Registration Bureau (SLRB).
His Excellency said that the regulation of the real estate sector through the introduction of appropriate standards is in the interest of all parties concerned with real estate development projects, as such standards are put in place to provide adequate guarantees and protection to all parties.
He added that all real estate professionals who are regulated by Law No. (27) will be granted a transition period until 31 August 2018 during which they have to adjust their legal position to comply with the requirements of the law so that they will not be subject to the penalties prescribed by law after this period.
In this context, he stressed the important role of RERA in the coming period, as it puts in place legal tools and instruments, decisions and procedures based on Law No. (27) of 2017 with respect to the regulation of the real estate sector. This will create a stable and coherent regulatory environment that will apply to everyone in the real estate sector. An environment that is flexible and business-friendly will provide a strong legal framework to developers, valuers, property managers and sale agents to enable them carry out all types of real estate transactions in an efficient and secure manner.
Shaikh Mohammed added that when developing our policies, we at RERA have adopted the most modern and best regional and international practices in the field of real estate development. The board members were carefully selected to represent both the private and public sectors to ensure coordination and integration in the decision-making process. This will also enable RERA to work with all parties to achieve the desired goals and make Bahrain a preferred destination for investment in the real estate sector in the region and the world.
Shaikh Mohammed said that Law No. (27) precludes unlicensed and inexperienced non-professionals from operating in the market in illegal competition with duly licensed and law-abiding real estate firms.
During the recent period, the rules and regulations have been put in place to regulate real estate brokerage, property valuation and property management. The role of RERA will be to press on with more initiatives to provide adequate training to such professions to enhance their skills and professionalism, which in turn will increase the efficiency of these professions and services and benefit the real estate sector in general.
After the implementation of the law, which will come into effect on 1st March, RERA will continue its efforts to improve the regulatory and legal framework by strengthening the rules and procedures governing the professions of real estate brokerage, property valuation, property management, and the owners' associations for closed compound/ gated community projects. The role of RERA will also include increasing and enhancing the professionalism and efficiency of the real estate sector by providing the best training and development programs for real estate professionals.
Shaikh Mohammed bin Khalifa Al Khalifa concluded that "We are committed to building a stronger real estate market. Enhancing the efficiency of the real estate sector is the focal point of the work of RERA to protect the interests of consumers, investors, intermediaries/ brokers, developers and all stakeholders in the market, which will in turn attract foreign investment and hence contribute to the growth of the real estate sector In particular, and the Bahraini economy in general”.[Back]