Property developers required to apply for RERA license
Manama, The Real Estate Regulatory Authority (RERA) today issued a statement advising developers that the six month transition period allowed for the regularisation of their activities comes to an end on 31 August 2018.
All developers of off-plan sales projects are required to be licensed by that date.
It will be illegal for such developers to operate without a RERA Developer license and off-plan sales project licenses after 1 September. In light of this,sanctions and penalties will apply for non-compliance with Law number (27) of 2017 on regulating the real estate sector.
Shaikh Mohammed bin Khalifa Al Khalifa, Chief Executive Officer of RERA today stated that the response from real estate brokers has been overwhelmingly positive with more than 98% of them already licensed. However, he urged developers of off-plan sales projects to apply for a RERA license immediately to avoid law violations.
He said RERA urges developers of off-plan projects to apply for licenses before the expiry of the six months transition period on 31 August in order to comply with the law. Operating without a RERA license will be in breach of the real estate regulations and sanctions will apply to those who do not comply with the law'. He encouraged developers to make contact with RERA as soon as possible to commence the application and approval processes.
Shaikh Mohammed highlighted that implementation of the Real Estate Sector RegulationLaw (Law 27 of 2017) is receiving favourable feedback from investorsand will instil greater confidence in the real estate sector, encourage further local and international investment and stimulate demand for real estate properties in the Kingdom of Bahrain.
Shaikh Mohammed stressed that buyers of units in these non-compliant developments need to be aware that they will not benefit from wide-ranging consumer protection mechanisms that have been safeguarded by the Real Estate Sector Regulation Law (Law 27 of 2017), and should exercise caution if they purchase from a non RERA licensed developer of an off-plan sale project.
To assist developers with licensing their off-plan sale developments, RERA has a comprehensive website www.rera.gov.bhwhich providesdetails on the steps to be followed to enable compliance with the Real Estate Sector Regulation Law (Law 27 of 2017)
RERA chief expressed his confidence that developers will ensure that their off-plan sale projects are registered with RERA before the 1 September 2018 and assured developers that RERA is ready to provide assistance to enable their developments to become compliant.
Source: Bahrain News Agency