Property owners have been urged to register their claims against rogue developers who have failed to meet their contractual obligations before the real estate regulation law was issued in 2017.
Deputy Prime Minister and head of the Ministerial Committee for Development and Infrastructure Projects Shaikh Khalid bin Abdulla Al Khalifa said yesterday that the government agencies were ready to take legal action based on the complaints they receive from property owners regarding real estate projects.
He underscored this as the panel referred two more development projects to a judicial committee to look into the obligations and rights of all parties.
Elegant City Development at Al Areen consists of 60 villas, most of which were sold by the developer in 2011.
The project was scheduled to be completed within a year from the start of construction.
However, the developer was unable to complete the project, thus breaching his obligations towards buyers and owners who have not received their units yet.
The second project is the One Central in Hidd consisting of 40 flats, and other freehold apartments.
“The developer of the project sold the units before the establishment of the Real Estate Regulatory Authority (Rera),” the panel said in a statement.
“Rera received complaints from buyers, and urged the developer to regularise the situation.”
Referred
“However, the developer did not respond, and failed to commit to implement the project and handing over units to the buyers at the time agreed under the preliminary sales contracts.”
In May this year, five stalled real estate projects were referred to the judicial committee by the government panel.
They included Breeze Seef, Marina Breeze 1 and 2, Dar Al Ezz 2 and 3, Marina Reef and Al Areen Homes.
It was found that the units were sold off-plan before the regulation of the real estate sector law 27 of 2017 and the buyers fulfilled part or all of their financial obligations to the developers.
The developers mortgaged the projects, during or after the construction phase, and before the delivery of the units, preventing the owners from receiving their property deeds for years.
Other stalled projects still being scrutinised are Marina West and Sunset Hills.
Meanwhile, Shaikh Khalid yesterday said government agencies are keen to follow up projects sold off-plan before the issuance of the real estate regulation law in 2017.
“All development projects should be fully compliant with the provisions of the law to preserve the reputation and status of Bahrain that has long been known as a safe and secure haven for real estate investment in the region for decades,” he said.
“This positive reputation has been strengthened thanks to the serious steps taken to regulate the sector and its governance in accordance with international best practices in the field.”
The Deputy Premier stressed the committee’s commitment to follow up on all stalled projects and to ensure the rights of the buyers are upheld “as part of the fight against exploitation and manipulation”.
“We urge owners and buyers in real estate development projects where developers did not adhere to the implementation programme agreed upon under the sales contracts to immediately communicate with the competent government agencies, that will take necessary legal measures to protect the rights and interests of customers,” he added.
Since 2014, the ministerial committee has addressed 14 stalled projects and referred 11 of them to the judicial committee.
It has reached out-of-court settlement in the case of Riffa Views, Landmark City View and Villamar.
© Copyright 2020 www.gdnonline.com
Copyright 2021 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
