Unregistered expatriate real-estate managers now face deportation if they fail to register with the government, under legislation passed by the Parliament's lower house yesterday.
The often maligned real-estate sector in the Kingdom is also facing a 10 fold increase in fines to BD500 if agents fail to register, but, under the changes, law breakers will no longer face the possibility of a jail term of up to two years.
The parliament agreed with Al Wefaq bloc's Mohammed Yousef Maezal proposal that expatriate property agents to be deported if they fail to register with the government.
"Any foreigner caught operating illegally should be deported after paying the fine of BD500," said Maezal.
"The changes, which will now go to the Shura for approval, make existing real estate laws more effective," said Lower House members. Almost half of the MPs spoke to the Chamber about frequent malpractice perpetrated by fly-by-night operators in the poorly regulated sector.
"As the Kingdom's real estate market grows, it is important to regulate the operators and ensure safety of all," said Abdulhussein Kaadhem Al Metghawi, who is a member of the parliament's largest bloc, Al Wefaq.
Existing rules require all agents to be registered with the Registrar of Real Estates, although this is not the broad reality.
The old penalty for failing to register was a fine of BD50 and a jail-term of up to two years, although nobody has ever been jailed for such an offense.
MP Jalal Fairooz said that the old fine of BD50 and a prison term of two years was not sufficiently punitive to deter unregistered agents.
The council approved an increased fine of BD500, although some MPs said the figure should be more as real estate commissions were often much greater than this amount. Under the changes, unregistered agents will also forfeit to the government any commissions they have earned.
Under the changes, the previously one-off registration fee of BD5 will remain the same for individual agents but increase to BD50 for real estate companies, and must now be paid annually.
Abdulaziz Abol, representing the Independent bloc Al Mustaqbal, spoke against the approved fee hike for companies.
"When the income is the same I do not see any reason for having two categories of registration fees," he argued.
Also under the changes, the owner of a real estate firm must be a Bahraini residing in the Kingdom and must also operate an office here.
Fluency in Arabic and ability to communicate with the local population are also mandatory requirements, although licensed operators could employ people of their choice to manage the daily operations of the company.
Source - © Bahrain Tribune [05 November 2008]
The often maligned real-estate sector in the Kingdom is also facing a 10 fold increase in fines to BD500 if agents fail to register, but, under the changes, law breakers will no longer face the possibility of a jail term of up to two years.
The parliament agreed with Al Wefaq bloc's Mohammed Yousef Maezal proposal that expatriate property agents to be deported if they fail to register with the government.
"Any foreigner caught operating illegally should be deported after paying the fine of BD500," said Maezal.
"The changes, which will now go to the Shura for approval, make existing real estate laws more effective," said Lower House members. Almost half of the MPs spoke to the Chamber about frequent malpractice perpetrated by fly-by-night operators in the poorly regulated sector.
"As the Kingdom's real estate market grows, it is important to regulate the operators and ensure safety of all," said Abdulhussein Kaadhem Al Metghawi, who is a member of the parliament's largest bloc, Al Wefaq.
Existing rules require all agents to be registered with the Registrar of Real Estates, although this is not the broad reality.
The old penalty for failing to register was a fine of BD50 and a jail-term of up to two years, although nobody has ever been jailed for such an offense.
MP Jalal Fairooz said that the old fine of BD50 and a prison term of two years was not sufficiently punitive to deter unregistered agents.
The council approved an increased fine of BD500, although some MPs said the figure should be more as real estate commissions were often much greater than this amount. Under the changes, unregistered agents will also forfeit to the government any commissions they have earned.
Under the changes, the previously one-off registration fee of BD5 will remain the same for individual agents but increase to BD50 for real estate companies, and must now be paid annually.
Abdulaziz Abol, representing the Independent bloc Al Mustaqbal, spoke against the approved fee hike for companies.
"When the income is the same I do not see any reason for having two categories of registration fees," he argued.
Also under the changes, the owner of a real estate firm must be a Bahraini residing in the Kingdom and must also operate an office here.
Fluency in Arabic and ability to communicate with the local population are also mandatory requirements, although licensed operators could employ people of their choice to manage the daily operations of the company.
Source - © Bahrain Tribune [05 November 2008]
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