Buying a property in Bahrain could soon come with an added layer of protection after the Capital Trustees Board backed a proposal requiring a No Objection Certificate (NOC) confirming a building is free from hidden municipal violations before a sale is completed.
The recommendation, aimed at protecting buyers from costly surprises and boosting confidence in the property market, has now been referred to Justice, Islamic Affairs and Endowments Minister Nawaf Al Maawda for review.
The proposal was approved during the general-secretariat board meeting yesterday chaired by Saleh Tarradah, following growing concerns over purchasers unknowingly inheriting illegal alterations, planning breaches and safety issues after taking ownership.
Capital Trustees Board member Dr Bashar Ahmedi, who submitted the proposal, said many violations remain invisible to buyers because they have never been officially recorded.
“The No Objection Certificate guarantees that the buyer knows exactly what is being purchased,” he said.
“Some changes are carried out without anyone’s knowledge and once the sale is completed the buyer is shocked by what has actually been inherited.”
Dr Ahmedi said common examples include pump rooms being converted into accommodation for security guards, emergency facilities being turned into everyday living spaces and residential units being used as offices without approval.
“The buyer doesn’t know this unless there is a registered municipal violation,” he said.
“In many cases the violation is never registered – it is hidden.”
He said introducing the certificate would strengthen investor protection, improve transparency in real estate transactions and could also create opportunities for qualified engineers responsible for inspecting properties before sales are finalised.
Mr Tarradah said the recommendation reflects the board’s determination to make the kingdom’s real estate sector more transparent and accountable.
“Property buyers deserve complete clarity before making one of the biggest financial commitments of their lives,” he said.
“This proposal is designed to strengthen confidence in the market, safeguard investments and reduce disputes arising from undisclosed violations.”
Vice-chairwoman Dr Khulood Al Qattan said the proposal would help tackle fraud linked to property classifications while ensuring buildings comply with essential safety requirements.
“The certificate will help resolve challenges related to deception and misrepresentation in property classification,” she said.
“It will also enhance the safety of residents and workers by ensuring all safety requirements have been verified in co-operation with the relevant authorities before ownership changes hands.
“If endorsed by the government, the proposed NOC system could mark a significant shift in Bahrain’s property market by ensuring buyers receive a clearer picture of a building’s legal and structural status before signing on the dotted line.”
During discussions, Capital Municipality director-general Alya Yousif noted that property sales involve several government agencies and suggested introducing the process initially as an optional application carrying a service fee rather than making it immediately mandatory.
Board members also highlighted complaints from buyers who only discovered planning and classification violations after completing purchases, leaving them to deal with legal and financial consequences.
The requirement for an NOC has been introduced in Maharashtra, India this year.
mohammed@gdnmedia.bh
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