Bahrain RERA Broker Exam cheat sheet

A broker licence is issued by the Real Estate Regulatory Authority (RERA) only to a natural person who meets the age, qualification, training and good-conduct conditions set in the law and its implementing resolutions; a company cannot itself hold a broker licence.

Brokerage activity must be carried on through a licensed brokerage office registered with RERA; the office must have a licensed broker responsible for it, and practising brokerage without a licence or through an unlicensed office is prohibited.

Applications are submitted to RERA with supporting documents (identity, qualification certificate, training certificate, good-conduct certificate, office lease); RERA may reject an incomplete application and the applicant may re-apply after curing the deficiency.

Licences run for a fixed term set by RERA resolution and must be renewed before expiry; renewal requires proof of continuing professional development, payment of fees, and continued compliance with good-conduct and office requirements.

Operating on an expired licence is treated as unlicensed practice; a grace or renewal window, if granted, does not authorise brokerage transactions during the lapse.

RERA may suspend or cancel a licence for grave or repeated violations, loss of good conduct, fraud, or failure to keep required records; cancellation decisions state reasons and are subject to appeal before the competent committee or court.

A broker must notify RERA of changes to licence data (address, office, legal form, partners) within the period fixed by resolution; failure to notify is itself a violation.

On death, incapacity or cancellation, the brokerage office must stop activity and the responsible broker's duties pass as RERA directs; client funds and escrow balances remain protected and must be accounted for.

Broker licence records are entered in the RERA register; the public register shows licence status, and dealing with an unregistered broker exposes the client and the broker to legal consequences.

Brokers are reporting entities under Bahrain's AML/CFT framework and must apply a risk-based approach: identify, assess and document money-laundering and terrorist-financing risk for clients, transactions, and delivery channels.

Customer due diligence (CDD) is mandatory before or during the establishment of a business relationship: identify the client and, where applicable, the beneficial owner, verify identity using reliable independent sources, and understand the purpose and intended nature of the relationship.

Enhanced due diligence applies to higher-risk cases: politically exposed persons (PEPs) and their family/associates, non-resident clients, complex ownership structures, and cash-intensive or unusual transactions; senior management approval and source-of-funds/source-of-wealth checks are required.

Cash transactions at or above the threshold set by the competent authority must be reported; brokers must not split transactions to avoid thresholds (structuring is itself a red flag).

Suspicious transactions or attempted transactions must be reported promptly to the Financial Intelligence National Centre (FINC) via the prescribed channel; tipping off the client is prohibited.

Record-keeping: CDD records, transaction documents and internal reports must be retained for at least the statutory period after the end of the relationship or the transaction, and produced to supervisors on request.

An internal AML/CFT programme is required: written policies, a designated compliance officer, staff training, independent testing, and screening against terrorism and sanctions lists.

Brokers must freeze and refrain from dealing with funds of designated persons and entities, and report matches to the competent authorities without delay.

Real estate red flags include unexplained cash, third-party payments, rapid resale at a different price, over/under-invoicing, offshore shell purchasers, and reluctance to provide identification; such cases trigger EDD and a suspicious transaction report.

A broker must act honestly, with due skill, care and diligence, and in the client's best interest, disclosing all material facts about the property and the transaction, including defects and encumbrances known to the broker.

Written agreements: the brokerage contract must state the parties, the property, the commission, the duration, and the scope of authority; verbal arrangements alone do not satisfy the regulatory standard.

Commission may be charged only under a written agreement; charging undisclosed or double commissions, or collecting fees for services not rendered, is a violation.

Client money must not be commingled with the broker's own funds; deposits and transaction money follow the escrow and trust rules, and receipts must be issued.

Confidentiality: client information may be disclosed only with consent or where the law requires (for example AML reporting to FINC, which overrides confidentiality).

Conflicts of interest must be disclosed in writing and managed; a broker may not represent both buyer and seller in the same transaction without informed written consent of both.

Advertising must be truthful and not misleading; listings require the owner's authorisation, prices must be accurate, and unlicensed persons may not be presented as brokers.

Brokers must cooperate with RERA inspectors, produce records, and answer requests within the stated time; obstructing inspection is a separate violation.

Discriminatory or coercive practices, misrepresentation of property title or area, and pressure selling are breaches of professional conduct and may lead to suspension or cancellation.

Violations include unlicensed practice, expired licence, employing unlicensed brokers, failure to keep records, AML failures, misleading advertising, and non-compliance with escrow rules.

Penalties escalate: warning, administrative fine, suspension for a period, and cancellation of licence; fines may be multiplied for repeat offences, and the law may provide imprisonment for serious breaches such as unlicensed brokerage.

Professional indemnity insurance is a licensing condition: the broker must maintain a valid policy covering errors, omissions and negligence in brokerage activity, with a minimum limit set by RERA resolution.

The policy must be issued by an insurer authorised in Bahrain and must remain in force throughout the licence term; lapse of cover must be reported to RERA and may lead to suspension.

Proof of insurance is required at issuance and renewal; the certificate must show the insured broker, the activity covered, the limit, and the policy period.

Insurance covers civil liability to clients; it does not cover fines, penalties, fraud, or intentional wrongdoing, which remain the broker's personal liability.

Claims history and notification: the broker must notify the insurer of circumstances that may give rise to a claim and cooperate in defence; failure can prejudice cover.

RERA decisions on violations are reasoned and appealable; the appeal does not automatically suspend enforcement unless the competent body orders otherwise.

Third parties harmed by a broker's breach may claim compensation; the disciplinary sanction by RERA is independent of civil liability and insurance recovery.

An off-plan project is sold before completion; the developer must obtain RERA approval and register the project before any marketing, reservation, or sale of units.

Registration requires proof of land title, project plans and permits, a project account (escrow) arrangement, a construction timetable, and disclosure of the developer's legal and financial standing.

Marketing materials must match the approved project data: unit areas, delivery date, amenities, payment schedule and service charges must be accurate and not misleading.

Sale contracts must be in writing, registered with RERA, and state the unit specification, price, payment plan, delivery date, and remedies for delay.

Payments from buyers must go into the project escrow account, not to the developer's general funds; the developer may withdraw against certified construction progress only.

The developer must report progress and any change of contractor, delivery date, or specification to RERA and to buyers; material changes require approval and buyer notification.

Cancellation of a registered project requires RERA approval; on cancellation, escrow balances are settled with buyers according to the law and the contract.

Selling unregistered off-plan units, collecting money outside escrow, or advertising an unapproved project are violations subject to fines, suspension, and cancellation.

An escrow account is a bank account opened in the project's name with an escrow agent (a licensed bank) under an escrow agreement approved by RERA; it holds buyers' payments for the project.

The developer has no free access to the escrow account: withdrawals require the escrow agent's verification of certified construction progress or other permitted purposes.

The escrow agreement must state the parties, the project, permitted disbursements, the certification mechanism, and the conditions for release of the final balance.

An insurance bond (performance/guarantee bond) may be accepted in place of or alongside escrow, issued by an authorised insurer or bank, covering completion or refund of buyers' money.

The bond must be valid for the project period plus the required tail, be payable on demand on RERA-certified default, and be renewed before expiry.

Commingling project funds with the developer's or another project's money is prohibited; each project has its own account.

The escrow agent must report balances and disbursements to RERA on the prescribed schedule and flag irregularities, including requests for non-permitted withdrawals.

On project completion and issuance of completion certificate, the escrow agent releases the remaining balance after settling retention and confirmed claims.

Sales agent: a licensed person acting for a developer or broker to market and sell units; must be registered with RERA, work under a licensed entity, and disclose the principal on whose behalf they act.

Property manager: licensed to manage property for owners, including leases, collections, maintenance and budgets; must keep separate client accounts, issue statements, and act under a written management agreement.

Valuer: licensed to prepare valuations using recognised standards (inspection, market comparison, income and cost approaches), must be independent and disclose any interest in the property.

Common areas manager: licensed to manage shared facilities and common property for owners associations or developers, collecting service charges and maintaining common assets.

Developer: must be licensed or registered for development activity, register projects, comply with escrow and disclosure rules, and hand over common areas and records to the owners association on completion.

Each profession has its own licensing conditions (qualification, experience, training, insurance) and its own scope; practising outside the licensed scope is a violation.

All professions are subject to the same AML/CFT, record-keeping, conduct and CPD obligations as brokers, adapted to their activity.

Fees for regulated professions must be agreed in writing and must not be contingent on outcomes that compromise independence (notably for valuers).

An owners association is formed for a jointly owned (strata) property to manage and maintain the common areas; membership is compulsory for every unit owner on registration.

The association is established by registration with RERA on application by the developer or a required proportion of owners, with the constitutive documents, the site plan, and the list of units and shares.

The general assembly is the supreme body: it approves the budget, service charges, appointment of the manager/auditor, and major works; ordinary and extraordinary meetings follow notice and quorum rules.

Voting power generally follows the unit's share in the common areas as stated in the site plan, not the number of units held.

The board or elected committee manages day-to-day affairs, implements assembly resolutions, and must keep accounts, minutes and a register of owners available for inspection.

Service charges are levied on owners in proportion to their shares; the association may recover unpaid charges through the legal means provided by the law.

The developer must hand over common areas, warranties, as-built drawings, contracts and funds to the association within the prescribed period after completion.

Disputes between owners and the association, or over common areas, go to the competent dispute body or court; RERA supervises compliance with the association framework.

A strata (jointly owned) property is divided into units owned individually and common areas owned in undivided shares; the site plan registered with RERA defines units, shares and common areas.

The common areas include structure, roofs, facades, staircases, lifts, corridors, parking serving all units, and utility installations; they cannot be appropriated by one owner.

Maintenance is funded by service charges apportioned by share; a reserve (sinking) fund is maintained for major repairs and replacement.

Alterations to common areas require assembly approval and, where the law requires, RERA or municipal approval; structural changes affecting safety need engineering certification.

The common areas manager must keep a maintenance plan, service contracts, insurance for the building, and records of works, and report to the association.

Insurance: the building and common areas must be insured against fire and perils, with the premium charged as a common expense.

Rules adopted by the association (by-laws) bind owners and occupants; breaches may lead to warnings, penalties under the by-laws, and court action.

On sale of a unit, unpaid service charges and the buyer's share obligations must be disclosed; the association issues a statement of dues for settlement.

CPD is a condition of licence renewal: a licensed broker must complete the minimum training hours per licence cycle set by RERA resolution, covering legal, AML/CFT, technical and ethical topics.

CPD activities must be delivered by RERA-approved or recognised providers; self-study counts only where the resolution allows it, and records of attendance and certificates must be kept.

The broker must maintain a CPD log showing date, provider, topic, and hours, and submit it at renewal or on inspection; false CPD claims are a conduct violation.

The regulatory framework is hierarchical: the real estate law, its implementing regulations and RERA resolutions, then RERA circulars and guidance; lower instruments must be read consistently with the law.

RERA's mandate covers licensing and supervision of brokers and other real estate professions, project and escrow oversight, owners associations, and market transparency through the register.

Other authorities interact with RERA: the Financial Intelligence National Centre for AML reporting, the central bank for escrow agents, and municipalities for permits; compliance with each applies cumulatively.

RERA issues circulars that update thresholds, forms and procedures; licensees are expected to monitor them, and ignorance of a published circular is not a defence.

Enforcement tools include inspection, requests for information, warnings, fines, suspension and cancellation, plus referral for criminal prosecution where the law provides.

Appeals against RERA decisions go to the body and within the time fixed by law; licensees should preserve records until the appeal period and any proceedings conclude.

A broker licence is issued by the Real Estate Regulatory Authority (RERA) only to a natural person who meets the age, qualification, training and good-conduct conditions set in the law and its implementing resolutions; a company cannot itself hold a broker licence.

Brokerage activity must be carried on through a licensed brokerage office registered with RERA; the office must have a licensed broker responsible for it, and practising brokerage without a licence or through an unlicensed office is prohibited.

Applications are submitted to RERA with supporting documents (identity, qualification certificate, training certificate, good-conduct certificate, office lease); RERA may reject an incomplete application and the applicant may re-apply after curing the deficiency.

Licences run for a fixed term set by RERA resolution and must be renewed before expiry; renewal requires proof of continuing professional development, payment of fees, and continued compliance with good-conduct and office requirements.

Operating on an expired licence is treated as unlicensed practice; a grace or renewal window, if granted, does not authorise brokerage transactions during the lapse.

RERA may suspend or cancel a licence for grave or repeated violations, loss of good conduct, fraud, or failure to keep required records; cancellation decisions state reasons and are subject to appeal before the competent committee or court.

A broker must notify RERA of changes to licence data (address, office, legal form, partners) within the period fixed by resolution; failure to notify is itself a violation.

On death, incapacity or cancellation, the brokerage office must stop activity and the responsible broker's duties pass as RERA directs; client funds and escrow balances remain protected and must be accounted for.

Broker licence records are entered in the RERA register; the public register shows licence status, and dealing with an unregistered broker exposes the client and the broker to legal consequences.

Brokers are reporting entities under Bahrain's AML/CFT framework and must apply a risk-based approach: identify, assess and document money-laundering and terrorist-financing risk for clients, transactions, and delivery channels.

Customer due diligence (CDD) is mandatory before or during the establishment of a business relationship: identify the client and, where applicable, the beneficial owner, verify identity using reliable independent sources, and understand the purpose and intended nature of the relationship.

Enhanced due diligence applies to higher-risk cases: politically exposed persons (PEPs) and their family/associates, non-resident clients, complex ownership structures, and cash-intensive or unusual transactions; senior management approval and source-of-funds/source-of-wealth checks are required.

Cash transactions at or above the threshold set by the competent authority must be reported; brokers must not split transactions to avoid thresholds (structuring is itself a red flag).

Suspicious transactions or attempted transactions must be reported promptly to the Financial Intelligence National Centre (FINC) via the prescribed channel; tipping off the client is prohibited.

Record-keeping: CDD records, transaction documents and internal reports must be retained for at least the statutory period after the end of the relationship or the transaction, and produced to supervisors on request.

An internal AML/CFT programme is required: written policies, a designated compliance officer, staff training, independent testing, and screening against terrorism and sanctions lists.

Brokers must freeze and refrain from dealing with funds of designated persons and entities, and report matches to the competent authorities without delay.

Real estate red flags include unexplained cash, third-party payments, rapid resale at a different price, over/under-invoicing, offshore shell purchasers, and reluctance to provide identification; such cases trigger EDD and a suspicious transaction report.

A broker must act honestly, with due skill, care and diligence, and in the client's best interest, disclosing all material facts about the property and the transaction, including defects and encumbrances known to the broker.

Written agreements: the brokerage contract must state the parties, the property, the commission, the duration, and the scope of authority; verbal arrangements alone do not satisfy the regulatory standard.

Commission may be charged only under a written agreement; charging undisclosed or double commissions, or collecting fees for services not rendered, is a violation.

Client money must not be commingled with the broker's own funds; deposits and transaction money follow the escrow and trust rules, and receipts must be issued.

Confidentiality: client information may be disclosed only with consent or where the law requires (for example AML reporting to FINC, which overrides confidentiality).

Conflicts of interest must be disclosed in writing and managed; a broker may not represent both buyer and seller in the same transaction without informed written consent of both.

Advertising must be truthful and not misleading; listings require the owner's authorisation, prices must be accurate, and unlicensed persons may not be presented as brokers.

Brokers must cooperate with RERA inspectors, produce records, and answer requests within the stated time; obstructing inspection is a separate violation.

Discriminatory or coercive practices, misrepresentation of property title or area, and pressure selling are breaches of professional conduct and may lead to suspension or cancellation.

Violations include unlicensed practice, expired licence, employing unlicensed brokers, failure to keep records, AML failures, misleading advertising, and non-compliance with escrow rules.

Penalties escalate: warning, administrative fine, suspension for a period, and cancellation of licence; fines may be multiplied for repeat offences, and the law may provide imprisonment for serious breaches such as unlicensed brokerage.

Professional indemnity insurance is a licensing condition: the broker must maintain a valid policy covering errors, omissions and negligence in brokerage activity, with a minimum limit set by RERA resolution.

The policy must be issued by an insurer authorised in Bahrain and must remain in force throughout the licence term; lapse of cover must be reported to RERA and may lead to suspension.

Proof of insurance is required at issuance and renewal; the certificate must show the insured broker, the activity covered, the limit, and the policy period.

Insurance covers civil liability to clients; it does not cover fines, penalties, fraud, or intentional wrongdoing, which remain the broker's personal liability.

Claims history and notification: the broker must notify the insurer of circumstances that may give rise to a claim and cooperate in defence; failure can prejudice cover.

RERA decisions on violations are reasoned and appealable; the appeal does not automatically suspend enforcement unless the competent body orders otherwise.

Third parties harmed by a broker's breach may claim compensation; the disciplinary sanction by RERA is independent of civil liability and insurance recovery.

An off-plan project is sold before completion; the developer must obtain RERA approval and register the project before any marketing, reservation, or sale of units.

Registration requires proof of land title, project plans and permits, a project account (escrow) arrangement, a construction timetable, and disclosure of the developer's legal and financial standing.

Marketing materials must match the approved project data: unit areas, delivery date, amenities, payment schedule and service charges must be accurate and not misleading.

Sale contracts must be in writing, registered with RERA, and state the unit specification, price, payment plan, delivery date, and remedies for delay.

Payments from buyers must go into the project escrow account, not to the developer's general funds; the developer may withdraw against certified construction progress only.

The developer must report progress and any change of contractor, delivery date, or specification to RERA and to buyers; material changes require approval and buyer notification.

Cancellation of a registered project requires RERA approval; on cancellation, escrow balances are settled with buyers according to the law and the contract.

Selling unregistered off-plan units, collecting money outside escrow, or advertising an unapproved project are violations subject to fines, suspension, and cancellation.

An escrow account is a bank account opened in the project's name with an escrow agent (a licensed bank) under an escrow agreement approved by RERA; it holds buyers' payments for the project.

The developer has no free access to the escrow account: withdrawals require the escrow agent's verification of certified construction progress or other permitted purposes.

The escrow agreement must state the parties, the project, permitted disbursements, the certification mechanism, and the conditions for release of the final balance.

An insurance bond (performance/guarantee bond) may be accepted in place of or alongside escrow, issued by an authorised insurer or bank, covering completion or refund of buyers' money.

The bond must be valid for the project period plus the required tail, be payable on demand on RERA-certified default, and be renewed before expiry.

Commingling project funds with the developer's or another project's money is prohibited; each project has its own account.

The escrow agent must report balances and disbursements to RERA on the prescribed schedule and flag irregularities, including requests for non-permitted withdrawals.

On project completion and issuance of completion certificate, the escrow agent releases the remaining balance after settling retention and confirmed claims.

Sales agent: a licensed person acting for a developer or broker to market and sell units; must be registered with RERA, work under a licensed entity, and disclose the principal on whose behalf they act.

Property manager: licensed to manage property for owners, including leases, collections, maintenance and budgets; must keep separate client accounts, issue statements, and act under a written management agreement.

Valuer: licensed to prepare valuations using recognised standards (inspection, market comparison, income and cost approaches), must be independent and disclose any interest in the property.

Common areas manager: licensed to manage shared facilities and common property for owners associations or developers, collecting service charges and maintaining common assets.

Developer: must be licensed or registered for development activity, register projects, comply with escrow and disclosure rules, and hand over common areas and records to the owners association on completion.

Each profession has its own licensing conditions (qualification, experience, training, insurance) and its own scope; practising outside the licensed scope is a violation.

All professions are subject to the same AML/CFT, record-keeping, conduct and CPD obligations as brokers, adapted to their activity.

Fees for regulated professions must be agreed in writing and must not be contingent on outcomes that compromise independence (notably for valuers).

An owners association is formed for a jointly owned (strata) property to manage and maintain the common areas; membership is compulsory for every unit owner on registration.

The association is established by registration with RERA on application by the developer or a required proportion of owners, with the constitutive documents, the site plan, and the list of units and shares.

The general assembly is the supreme body: it approves the budget, service charges, appointment of the manager/auditor, and major works; ordinary and extraordinary meetings follow notice and quorum rules.

Voting power generally follows the unit's share in the common areas as stated in the site plan, not the number of units held.

The board or elected committee manages day-to-day affairs, implements assembly resolutions, and must keep accounts, minutes and a register of owners available for inspection.

Service charges are levied on owners in proportion to their shares; the association may recover unpaid charges through the legal means provided by the law.

The developer must hand over common areas, warranties, as-built drawings, contracts and funds to the association within the prescribed period after completion.

Disputes between owners and the association, or over common areas, go to the competent dispute body or court; RERA supervises compliance with the association framework.

A strata (jointly owned) property is divided into units owned individually and common areas owned in undivided shares; the site plan registered with RERA defines units, shares and common areas.

The common areas include structure, roofs, facades, staircases, lifts, corridors, parking serving all units, and utility installations; they cannot be appropriated by one owner.

Maintenance is funded by service charges apportioned by share; a reserve (sinking) fund is maintained for major repairs and replacement.

Alterations to common areas require assembly approval and, where the law requires, RERA or municipal approval; structural changes affecting safety need engineering certification.

The common areas manager must keep a maintenance plan, service contracts, insurance for the building, and records of works, and report to the association.

Insurance: the building and common areas must be insured against fire and perils, with the premium charged as a common expense.

Rules adopted by the association (by-laws) bind owners and occupants; breaches may lead to warnings, penalties under the by-laws, and court action.

On sale of a unit, unpaid service charges and the buyer's share obligations must be disclosed; the association issues a statement of dues for settlement.

CPD is a condition of licence renewal: a licensed broker must complete the minimum training hours per licence cycle set by RERA resolution, covering legal, AML/CFT, technical and ethical topics.

CPD activities must be delivered by RERA-approved or recognised providers; self-study counts only where the resolution allows it, and records of attendance and certificates must be kept.

The broker must maintain a CPD log showing date, provider, topic, and hours, and submit it at renewal or on inspection; false CPD claims are a conduct violation.

The regulatory framework is hierarchical: the real estate law, its implementing regulations and RERA resolutions, then RERA circulars and guidance; lower instruments must be read consistently with the law.

RERA's mandate covers licensing and supervision of brokers and other real estate professions, project and escrow oversight, owners associations, and market transparency through the register.

Other authorities interact with RERA: the Financial Intelligence National Centre for AML reporting, the central bank for escrow agents, and municipalities for permits; compliance with each applies cumulatively.

RERA issues circulars that update thresholds, forms and procedures; licensees are expected to monitor them, and ignorance of a published circular is not a defence.

Enforcement tools include inspection, requests for information, warnings, fines, suspension and cancellation, plus referral for criminal prosecution where the law provides.

Appeals against RERA decisions go to the body and within the time fixed by law; licensees should preserve records until the appeal period and any proceedings conclude.

A broker licence is issued by the Real Estate Regulatory Authority (RERA) only to a natural person who meets the age, qualification, training and good-conduct conditions set in the law and its implementing resolutions; a company cannot itself hold a broker licence.

Brokerage activity must be carried on through a licensed brokerage office registered with RERA; the office must have a licensed broker responsible for it, and practising brokerage without a licence or through an unlicensed office is prohibited.

Applications are submitted to RERA with supporting documents (identity, qualification certificate, training certificate, good-conduct certificate, office lease); RERA may reject an incomplete application and the applicant may re-apply after curing the deficiency.

Licences run for a fixed term set by RERA resolution and must be renewed before expiry; renewal requires proof of continuing professional development, payment of fees, and continued compliance with good-conduct and office requirements.

Operating on an expired licence is treated as unlicensed practice; a grace or renewal window, if granted, does not authorise brokerage transactions during the lapse.

RERA may suspend or cancel a licence for grave or repeated violations, loss of good conduct, fraud, or failure to keep required records; cancellation decisions state reasons and are subject to appeal before the competent committee or court.

A broker must notify RERA of changes to licence data (address, office, legal form, partners) within the period fixed by resolution; failure to notify is itself a violation.

On death, incapacity or cancellation, the brokerage office must stop activity and the responsible broker's duties pass as RERA directs; client funds and escrow balances remain protected and must be accounted for.

Broker licence records are entered in the RERA register; the public register shows licence status, and dealing with an unregistered broker exposes the client and the broker to legal consequences.

Brokers are reporting entities under Bahrain's AML/CFT framework and must apply a risk-based approach: identify, assess and document money-laundering and terrorist-financing risk for clients, transactions, and delivery channels.

Customer due diligence (CDD) is mandatory before or during the establishment of a business relationship: identify the client and, where applicable, the beneficial owner, verify identity using reliable independent sources, and understand the purpose and intended nature of the relationship.

Enhanced due diligence applies to higher-risk cases: politically exposed persons (PEPs) and their family/associates, non-resident clients, complex ownership structures, and cash-intensive or unusual transactions; senior management approval and source-of-funds/source-of-wealth checks are required.

Cash transactions at or above the threshold set by the competent authority must be reported; brokers must not split transactions to avoid thresholds (structuring is itself a red flag).

Suspicious transactions or attempted transactions must be reported promptly to the Financial Intelligence National Centre (FINC) via the prescribed channel; tipping off the client is prohibited.

Record-keeping: CDD records, transaction documents and internal reports must be retained for at least the statutory period after the end of the relationship or the transaction, and produced to supervisors on request.

An internal AML/CFT programme is required: written policies, a designated compliance officer, staff training, independent testing, and screening against terrorism and sanctions lists.

Brokers must freeze and refrain from dealing with funds of designated persons and entities, and report matches to the competent authorities without delay.

Real estate red flags include unexplained cash, third-party payments, rapid resale at a different price, over/under-invoicing, offshore shell purchasers, and reluctance to provide identification; such cases trigger EDD and a suspicious transaction report.

A broker must act honestly, with due skill, care and diligence, and in the client's best interest, disclosing all material facts about the property and the transaction, including defects and encumbrances known to the broker.

Written agreements: the brokerage contract must state the parties, the property, the commission, the duration, and the scope of authority; verbal arrangements alone do not satisfy the regulatory standard.

Commission may be charged only under a written agreement; charging undisclosed or double commissions, or collecting fees for services not rendered, is a violation.

Client money must not be commingled with the broker's own funds; deposits and transaction money follow the escrow and trust rules, and receipts must be issued.

Confidentiality: client information may be disclosed only with consent or where the law requires (for example AML reporting to FINC, which overrides confidentiality).

Conflicts of interest must be disclosed in writing and managed; a broker may not represent both buyer and seller in the same transaction without informed written consent of both.

Advertising must be truthful and not misleading; listings require the owner's authorisation, prices must be accurate, and unlicensed persons may not be presented as brokers.

Brokers must cooperate with RERA inspectors, produce records, and answer requests within the stated time; obstructing inspection is a separate violation.

Discriminatory or coercive practices, misrepresentation of property title or area, and pressure selling are breaches of professional conduct and may lead to suspension or cancellation.

Violations include unlicensed practice, expired licence, employing unlicensed brokers, failure to keep records, AML failures, misleading advertising, and non-compliance with escrow rules.

Penalties escalate: warning, administrative fine, suspension for a period, and cancellation of licence; fines may be multiplied for repeat offences, and the law may provide imprisonment for serious breaches such as unlicensed brokerage.

Professional indemnity insurance is a licensing condition: the broker must maintain a valid policy covering errors, omissions and negligence in brokerage activity, with a minimum limit set by RERA resolution.

The policy must be issued by an insurer authorised in Bahrain and must remain in force throughout the licence term; lapse of cover must be reported to RERA and may lead to suspension.

Proof of insurance is required at issuance and renewal; the certificate must show the insured broker, the activity covered, the limit, and the policy period.

Insurance covers civil liability to clients; it does not cover fines, penalties, fraud, or intentional wrongdoing, which remain the broker's personal liability.

Claims history and notification: the broker must notify the insurer of circumstances that may give rise to a claim and cooperate in defence; failure can prejudice cover.

RERA decisions on violations are reasoned and appealable; the appeal does not automatically suspend enforcement unless the competent body orders otherwise.

Third parties harmed by a broker's breach may claim compensation; the disciplinary sanction by RERA is independent of civil liability and insurance recovery.

An off-plan project is sold before completion; the developer must obtain RERA approval and register the project before any marketing, reservation, or sale of units.

Registration requires proof of land title, project plans and permits, a project account (escrow) arrangement, a construction timetable, and disclosure of the developer's legal and financial standing.

Marketing materials must match the approved project data: unit areas, delivery date, amenities, payment schedule and service charges must be accurate and not misleading.

Sale contracts must be in writing, registered with RERA, and state the unit specification, price, payment plan, delivery date, and remedies for delay.

Payments from buyers must go into the project escrow account, not to the developer's general funds; the developer may withdraw against certified construction progress only.

The developer must report progress and any change of contractor, delivery date, or specification to RERA and to buyers; material changes require approval and buyer notification.

Cancellation of a registered project requires RERA approval; on cancellation, escrow balances are settled with buyers according to the law and the contract.

Selling unregistered off-plan units, collecting money outside escrow, or advertising an unapproved project are violations subject to fines, suspension, and cancellation.

An escrow account is a bank account opened in the project's name with an escrow agent (a licensed bank) under an escrow agreement approved by RERA; it holds buyers' payments for the project.

The developer has no free access to the escrow account: withdrawals require the escrow agent's verification of certified construction progress or other permitted purposes.

The escrow agreement must state the parties, the project, permitted disbursements, the certification mechanism, and the conditions for release of the final balance.

An insurance bond (performance/guarantee bond) may be accepted in place of or alongside escrow, issued by an authorised insurer or bank, covering completion or refund of buyers' money.

The bond must be valid for the project period plus the required tail, be payable on demand on RERA-certified default, and be renewed before expiry.

Commingling project funds with the developer's or another project's money is prohibited; each project has its own account.

The escrow agent must report balances and disbursements to RERA on the prescribed schedule and flag irregularities, including requests for non-permitted withdrawals.

On project completion and issuance of completion certificate, the escrow agent releases the remaining balance after settling retention and confirmed claims.

Sales agent: a licensed person acting for a developer or broker to market and sell units; must be registered with RERA, work under a licensed entity, and disclose the principal on whose behalf they act.

Property manager: licensed to manage property for owners, including leases, collections, maintenance and budgets; must keep separate client accounts, issue statements, and act under a written management agreement.

Valuer: licensed to prepare valuations using recognised standards (inspection, market comparison, income and cost approaches), must be independent and disclose any interest in the property.

Common areas manager: licensed to manage shared facilities and common property for owners associations or developers, collecting service charges and maintaining common assets.

Developer: must be licensed or registered for development activity, register projects, comply with escrow and disclosure rules, and hand over common areas and records to the owners association on completion.

Each profession has its own licensing conditions (qualification, experience, training, insurance) and its own scope; practising outside the licensed scope is a violation.

All professions are subject to the same AML/CFT, record-keeping, conduct and CPD obligations as brokers, adapted to their activity.

Fees for regulated professions must be agreed in writing and must not be contingent on outcomes that compromise independence (notably for valuers).

An owners association is formed for a jointly owned (strata) property to manage and maintain the common areas; membership is compulsory for every unit owner on registration.

The association is established by registration with RERA on application by the developer or a required proportion of owners, with the constitutive documents, the site plan, and the list of units and shares.

The general assembly is the supreme body: it approves the budget, service charges, appointment of the manager/auditor, and major works; ordinary and extraordinary meetings follow notice and quorum rules.

Voting power generally follows the unit's share in the common areas as stated in the site plan, not the number of units held.

The board or elected committee manages day-to-day affairs, implements assembly resolutions, and must keep accounts, minutes and a register of owners available for inspection.

Service charges are levied on owners in proportion to their shares; the association may recover unpaid charges through the legal means provided by the law.

The developer must hand over common areas, warranties, as-built drawings, contracts and funds to the association within the prescribed period after completion.

Disputes between owners and the association, or over common areas, go to the competent dispute body or court; RERA supervises compliance with the association framework.

A strata (jointly owned) property is divided into units owned individually and common areas owned in undivided shares; the site plan registered with RERA defines units, shares and common areas.

The common areas include structure, roofs, facades, staircases, lifts, corridors, parking serving all units, and utility installations; they cannot be appropriated by one owner.

Maintenance is funded by service charges apportioned by share; a reserve (sinking) fund is maintained for major repairs and replacement.

Alterations to common areas require assembly approval and, where the law requires, RERA or municipal approval; structural changes affecting safety need engineering certification.

The common areas manager must keep a maintenance plan, service contracts, insurance for the building, and records of works, and report to the association.

Insurance: the building and common areas must be insured against fire and perils, with the premium charged as a common expense.

Rules adopted by the association (by-laws) bind owners and occupants; breaches may lead to warnings, penalties under the by-laws, and court action.

On sale of a unit, unpaid service charges and the buyer's share obligations must be disclosed; the association issues a statement of dues for settlement.

CPD is a condition of licence renewal: a licensed broker must complete the minimum training hours per licence cycle set by RERA resolution, covering legal, AML/CFT, technical and ethical topics.

CPD activities must be delivered by RERA-approved or recognised providers; self-study counts only where the resolution allows it, and records of attendance and certificates must be kept.

The broker must maintain a CPD log showing date, provider, topic, and hours, and submit it at renewal or on inspection; false CPD claims are a conduct violation.

The regulatory framework is hierarchical: the real estate law, its implementing regulations and RERA resolutions, then RERA circulars and guidance; lower instruments must be read consistently with the law.

RERA's mandate covers licensing and supervision of brokers and other real estate professions, project and escrow oversight, owners associations, and market transparency through the register.

Other authorities interact with RERA: the Financial Intelligence National Centre for AML reporting, the central bank for escrow agents, and municipalities for permits; compliance with each applies cumulatively.

RERA issues circulars that update thresholds, forms and procedures; licensees are expected to monitor them, and ignorance of a published circular is not a defence.

Enforcement tools include inspection, requests for information, warnings, fines, suspension and cancellation, plus referral for criminal prosecution where the law provides.

Appeals against RERA decisions go to the body and within the time fixed by law; licensees should preserve records until the appeal period and any proceedings conclude.

A broker licence is issued by the Real Estate Regulatory Authority (RERA) only to a natural person who meets the age, qualification, training and good-conduct conditions set in the law and its implementing resolutions; a company cannot itself hold a broker licence.

Brokerage activity must be carried on through a licensed brokerage office registered with RERA; the office must have a licensed broker responsible for it, and practising brokerage without a licence or through an unlicensed office is prohibited.

Applications are submitted to RERA with supporting documents (identity, qualification certificate, training certificate, good-conduct certificate, office lease); RERA may reject an incomplete application and the applicant may re-apply after curing the deficiency.

Licences run for a fixed term set by RERA resolution and must be renewed before expiry; renewal requires proof of continuing professional development, payment of fees, and continued compliance with good-conduct and office requirements.

Operating on an expired licence is treated as unlicensed practice; a grace or renewal window, if granted, does not authorise brokerage transactions during the lapse.

RERA may suspend or cancel a licence for grave or repeated violations, loss of good conduct, fraud, or failure to keep required records; cancellation decisions state reasons and are subject to appeal before the competent committee or court.

A broker must notify RERA of changes to licence data (address, office, legal form, partners) within the period fixed by resolution; failure to notify is itself a violation.

On death, incapacity or cancellation, the brokerage office must stop activity and the responsible broker's duties pass as RERA directs; client funds and escrow balances remain protected and must be accounted for.

Broker licence records are entered in the RERA register; the public register shows licence status, and dealing with an unregistered broker exposes the client and the broker to legal consequences.

Brokers are reporting entities under Bahrain's AML/CFT framework and must apply a risk-based approach: identify, assess and document money-laundering and terrorist-financing risk for clients, transactions, and delivery channels.

Customer due diligence (CDD) is mandatory before or during the establishment of a business relationship: identify the client and, where applicable, the beneficial owner, verify identity using reliable independent sources, and understand the purpose and intended nature of the relationship.

Enhanced due diligence applies to higher-risk cases: politically exposed persons (PEPs) and their family/associates, non-resident clients, complex ownership structures, and cash-intensive or unusual transactions; senior management approval and source-of-funds/source-of-wealth checks are required.

Cash transactions at or above the threshold set by the competent authority must be reported; brokers must not split transactions to avoid thresholds (structuring is itself a red flag).

Suspicious transactions or attempted transactions must be reported promptly to the Financial Intelligence National Centre (FINC) via the prescribed channel; tipping off the client is prohibited.

Record-keeping: CDD records, transaction documents and internal reports must be retained for at least the statutory period after the end of the relationship or the transaction, and produced to supervisors on request.

An internal AML/CFT programme is required: written policies, a designated compliance officer, staff training, independent testing, and screening against terrorism and sanctions lists.

Brokers must freeze and refrain from dealing with funds of designated persons and entities, and report matches to the competent authorities without delay.

Real estate red flags include unexplained cash, third-party payments, rapid resale at a different price, over/under-invoicing, offshore shell purchasers, and reluctance to provide identification; such cases trigger EDD and a suspicious transaction report.

A broker must act honestly, with due skill, care and diligence, and in the client's best interest, disclosing all material facts about the property and the transaction, including defects and encumbrances known to the broker.

Written agreements: the brokerage contract must state the parties, the property, the commission, the duration, and the scope of authority; verbal arrangements alone do not satisfy the regulatory standard.

Commission may be charged only under a written agreement; charging undisclosed or double commissions, or collecting fees for services not rendered, is a violation.

Client money must not be commingled with the broker's own funds; deposits and transaction money follow the escrow and trust rules, and receipts must be issued.

Confidentiality: client information may be disclosed only with consent or where the law requires (for example AML reporting to FINC, which overrides confidentiality).

Conflicts of interest must be disclosed in writing and managed; a broker may not represent both buyer and seller in the same transaction without informed written consent of both.

Advertising must be truthful and not misleading; listings require the owner's authorisation, prices must be accurate, and unlicensed persons may not be presented as brokers.

Brokers must cooperate with RERA inspectors, produce records, and answer requests within the stated time; obstructing inspection is a separate violation.

Discriminatory or coercive practices, misrepresentation of property title or area, and pressure selling are breaches of professional conduct and may lead to suspension or cancellation.

Violations include unlicensed practice, expired licence, employing unlicensed brokers, failure to keep records, AML failures, misleading advertising, and non-compliance with escrow rules.

Penalties escalate: warning, administrative fine, suspension for a period, and cancellation of licence; fines may be multiplied for repeat offences, and the law may provide imprisonment for serious breaches such as unlicensed brokerage.

Professional indemnity insurance is a licensing condition: the broker must maintain a valid policy covering errors, omissions and negligence in brokerage activity, with a minimum limit set by RERA resolution.

The policy must be issued by an insurer authorised in Bahrain and must remain in force throughout the licence term; lapse of cover must be reported to RERA and may lead to suspension.

Proof of insurance is required at issuance and renewal; the certificate must show the insured broker, the activity covered, the limit, and the policy period.

Insurance covers civil liability to clients; it does not cover fines, penalties, fraud, or intentional wrongdoing, which remain the broker's personal liability.

Claims history and notification: the broker must notify the insurer of circumstances that may give rise to a claim and cooperate in defence; failure can prejudice cover.

RERA decisions on violations are reasoned and appealable; the appeal does not automatically suspend enforcement unless the competent body orders otherwise.

Third parties harmed by a broker's breach may claim compensation; the disciplinary sanction by RERA is independent of civil liability and insurance recovery.

An off-plan project is sold before completion; the developer must obtain RERA approval and register the project before any marketing, reservation, or sale of units.

Registration requires proof of land title, project plans and permits, a project account (escrow) arrangement, a construction timetable, and disclosure of the developer's legal and financial standing.

Marketing materials must match the approved project data: unit areas, delivery date, amenities, payment schedule and service charges must be accurate and not misleading.

Sale contracts must be in writing, registered with RERA, and state the unit specification, price, payment plan, delivery date, and remedies for delay.

Payments from buyers must go into the project escrow account, not to the developer's general funds; the developer may withdraw against certified construction progress only.

The developer must report progress and any change of contractor, delivery date, or specification to RERA and to buyers; material changes require approval and buyer notification.

Cancellation of a registered project requires RERA approval; on cancellation, escrow balances are settled with buyers according to the law and the contract.

Selling unregistered off-plan units, collecting money outside escrow, or advertising an unapproved project are violations subject to fines, suspension, and cancellation.

An escrow account is a bank account opened in the project's name with an escrow agent (a licensed bank) under an escrow agreement approved by RERA; it holds buyers' payments for the project.

The developer has no free access to the escrow account: withdrawals require the escrow agent's verification of certified construction progress or other permitted purposes.

The escrow agreement must state the parties, the project, permitted disbursements, the certification mechanism, and the conditions for release of the final balance.

An insurance bond (performance/guarantee bond) may be accepted in place of or alongside escrow, issued by an authorised insurer or bank, covering completion or refund of buyers' money.

The bond must be valid for the project period plus the required tail, be payable on demand on RERA-certified default, and be renewed before expiry.

Commingling project funds with the developer's or another project's money is prohibited; each project has its own account.

The escrow agent must report balances and disbursements to RERA on the prescribed schedule and flag irregularities, including requests for non-permitted withdrawals.

On project completion and issuance of completion certificate, the escrow agent releases the remaining balance after settling retention and confirmed claims.

Sales agent: a licensed person acting for a developer or broker to market and sell units; must be registered with RERA, work under a licensed entity, and disclose the principal on whose behalf they act.

Property manager: licensed to manage property for owners, including leases, collections, maintenance and budgets; must keep separate client accounts, issue statements, and act under a written management agreement.

Valuer: licensed to prepare valuations using recognised standards (inspection, market comparison, income and cost approaches), must be independent and disclose any interest in the property.

Common areas manager: licensed to manage shared facilities and common property for owners associations or developers, collecting service charges and maintaining common assets.

Developer: must be licensed or registered for development activity, register projects, comply with escrow and disclosure rules, and hand over common areas and records to the owners association on completion.

Each profession has its own licensing conditions (qualification, experience, training, insurance) and its own scope; practising outside the licensed scope is a violation.

All professions are subject to the same AML/CFT, record-keeping, conduct and CPD obligations as brokers, adapted to their activity.

Fees for regulated professions must be agreed in writing and must not be contingent on outcomes that compromise independence (notably for valuers).

An owners association is formed for a jointly owned (strata) property to manage and maintain the common areas; membership is compulsory for every unit owner on registration.

The association is established by registration with RERA on application by the developer or a required proportion of owners, with the constitutive documents, the site plan, and the list of units and shares.

The general assembly is the supreme body: it approves the budget, service charges, appointment of the manager/auditor, and major works; ordinary and extraordinary meetings follow notice and quorum rules.

Voting power generally follows the unit's share in the common areas as stated in the site plan, not the number of units held.

The board or elected committee manages day-to-day affairs, implements assembly resolutions, and must keep accounts, minutes and a register of owners available for inspection.

Service charges are levied on owners in proportion to their shares; the association may recover unpaid charges through the legal means provided by the law.

The developer must hand over common areas, warranties, as-built drawings, contracts and funds to the association within the prescribed period after completion.

Disputes between owners and the association, or over common areas, go to the competent dispute body or court; RERA supervises compliance with the association framework.

A strata (jointly owned) property is divided into units owned individually and common areas owned in undivided shares; the site plan registered with RERA defines units, shares and common areas.

The common areas include structure, roofs, facades, staircases, lifts, corridors, parking serving all units, and utility installations; they cannot be appropriated by one owner.

Maintenance is funded by service charges apportioned by share; a reserve (sinking) fund is maintained for major repairs and replacement.

Alterations to common areas require assembly approval and, where the law requires, RERA or municipal approval; structural changes affecting safety need engineering certification.

The common areas manager must keep a maintenance plan, service contracts, insurance for the building, and records of works, and report to the association.

Insurance: the building and common areas must be insured against fire and perils, with the premium charged as a common expense.

Rules adopted by the association (by-laws) bind owners and occupants; breaches may lead to warnings, penalties under the by-laws, and court action.

On sale of a unit, unpaid service charges and the buyer's share obligations must be disclosed; the association issues a statement of dues for settlement.

CPD is a condition of licence renewal: a licensed broker must complete the minimum training hours per licence cycle set by RERA resolution, covering legal, AML/CFT, technical and ethical topics.

CPD activities must be delivered by RERA-approved or recognised providers; self-study counts only where the resolution allows it, and records of attendance and certificates must be kept.

The broker must maintain a CPD log showing date, provider, topic, and hours, and submit it at renewal or on inspection; false CPD claims are a conduct violation.

The regulatory framework is hierarchical: the real estate law, its implementing regulations and RERA resolutions, then RERA circulars and guidance; lower instruments must be read consistently with the law.

RERA's mandate covers licensing and supervision of brokers and other real estate professions, project and escrow oversight, owners associations, and market transparency through the register.

Other authorities interact with RERA: the Financial Intelligence National Centre for AML reporting, the central bank for escrow agents, and municipalities for permits; compliance with each applies cumulatively.

RERA issues circulars that update thresholds, forms and procedures; licensees are expected to monitor them, and ignorance of a published circular is not a defence.

Enforcement tools include inspection, requests for information, warnings, fines, suspension and cancellation, plus referral for criminal prosecution where the law provides.

Appeals against RERA decisions go to the body and within the time fixed by law; licensees should preserve records until the appeal period and any proceedings conclude.