A FURTHER five stalled real estate projects worth millions of dinars have been referred to a judicial committee in an effort to protect the interest of buyers and other stakeholders.
Deputy Prime Minister and head of the Ministerial Committee for Development and Infrastructure Projects Shaikh Khalid bin Abdulla Al Khalifa announced the decision yesterday during a virtual meeting in which the following five projects were reviewed:
- Breeze Seef
- Marina Breeze 1 and 2
- Dar Al Ezz 2 and 3
- Marina Reef
- Al Areen Homes.
They have been referred to the Judicial Committee for the Settlement of Stalled Real Estate Projects.
Off-plan
“It became clear to the Ministerial Committee that in the Marina Reef project the units were sold off-plan in conjunction with the start of its construction in 2007,” said Shaikh Khalid. “The units were not delivered to their owners at the specified time.”
The five projects were referred by the Cabinet earlier this month to the committee to look into the obligations and rights of all parties. They accessed all data, information and relevant documents before making a decision.
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.
“We are very keen to protect the rights and interests of individuals in all cases and by all means. This has already proven the integrity of the government’s approach in dealing with stalled real estate development projects,” said Shaikh Khalid.
Shaikh Khalid further directed the Real Estate Regulatory Authority, in co-ordination with the relevant ministries and government agencies, to follow up projects sold off-plan before the issuance of the real estate regulation law in 2017.
The GDN was contacted by a group of Breeze Seef owners, some of whom had already filed court cases and had judgments in their favour but were still waiting to receive their coveted deeds.
Six years on and they are still waiting despite honouring all financial commitments back in 2015.
“It was meant to be a simple transaction accompanied by a lot of promises by the developer through his convincing sales team and fancy brochures,” the group of owners said in a statement.
“Yet within two years in 2017, we realised that the 52 apartments we bought did not have the required documentation to issue us with the title deeds.
“Furthermore, the landowner and developer entered into a mortgage with a bank putting the building as a guarantee, even though the apartments had been already sold to us.”
The letter explains they were later told the land title deeds were held by the bank and the developer had since declared bankruptcy.
“We hope that the Bahraini authorities will help us and encourage future families and foreign investors to put their money in Bahrain knowing that it is a safe environment to invest in.”
Al Areen Homes is composed of 40 luxurious two-storey deluxe villas – ‘designed using high international standards to deliver exceptional homes’, according to the company website.
The GDN reported that Marina Reef project, located on Reef Island, missed several deadlines since it was started in 2008.
In addition to the five stalled projects referred, the government judicial committee is reviewing other unfinished projects – Marina West, Sunset Hills and the Elegant City Development Project.
sandy@gdn.com.bh
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