Common area management under RERA scanner

TDT | Manama

Email: mail@newsofbahrain.com

Owners’ associations are no longer authorised to hire unlicensed firms to manage common parts or shared areas in investment islands, as well as in residential and commercial blocks, according to the Real Estate Regulatory Authority (RERA).

RERA chairman Essam Khalaf also ordered the enforcement of licensing decisions within five working days, with applications deemed refused if no decision is issued within that period.

Managing shared areas without prior authorisation is now prohibited.

Procedure

Applicants must obtain a licence from RERA in accordance with Article 3. The authority will decide on applications within five working days, with silence deemed a refusal. Applicants may lodge a grievance with the chief executive in accordance with Articles 6 and 7. If approved, the licence will be issued once the applicable fees are paid and the category is determined.

Three years of experience

Article 9 establishes two licensing categories. Category A covers main, central, and subsidiary common parts, while Category B applies only to subsidiary common parts. To qualify for Category A, applicants must have at least three years of local or foreign experience in property or common parts management, along with access to financial, technical, and legal expertise either through direct employment or contractual arrangements. Category B applicants must have a minimum of one year’s relevant experience.

Hold commercial registration

Applicants must hold a commercial registration as a sole proprietorship, have no final convictions for offences involving honour or trust unless rehabilitated, and must not be undischarged bankrupts. A licence may not be assigned without RERA’s consent, and any intended assignment may be published online. Licences are cancelled upon the licensee’s death unless the heirs request to continue within 30 days and meet all requirements. They are also cancelled if the company is dissolved or if the activity ceases for two years. Under Article 11, RERA may withdraw a licence if the conditions are no longer met or if it was obtained using false documents, and may publish its decision.

Responsibility

Article 12 makes the licensee personally responsible for managing, operating, and maintaining the common parts. While technicians or contractors may be engaged, they must remain under the licensee’s direct supervision. Routine repairs must be carried out without delay, and urgent repairs must be undertaken immediately. Replacement of common parts is permitted only when repair is impossible or serves no practical purpose.

Written contract

A written contract with the owners’ association is required, detailing rights, duties, scope of work, fees, and dispute resolution. Any conflicts of interest must be disclosed, and RERA must be notified of licence changes or cessation of activity within 30 days.