Bahrain RERA Broker Exam flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Who may hold a broker licence

Only a natural person who satisfies RERA's qualification, training, age and good-conduct conditions. A company cannot hold a broker licence; brokerage activity is carried on through a licensed brokerage office with a responsible licensed broker.

Licence renewal prerequisites

Renewal before expiry requires payment of fees, proof of completed CPD hours, and continued compliance with good-conduct and office requirements. Operating after expiry is treated as unlicensed practice and is sanctionable.

Grounds for licence cancellation

RERA may suspend or cancel for grave or repeated violations, loss of good conduct, fraud, or failure to keep required records. Decisions must state reasons and are appealable before the competent body or court.

Change of licence data

A broker must notify RERA of changes to licence particulars, such as office address, legal form or partners, within the period fixed by resolution. Failure to notify is itself a violation.

Customer due diligence timing

CDD must be completed before or during establishment of the business relationship: identify the client and beneficial owner, verify identity from reliable independent sources, and understand the purpose of the relationship.

Enhanced due diligence triggers

PEPs and their associates, non-resident clients, complex ownership structures, and unusual or cash-intensive transactions require EDD, senior management approval, and source-of-funds and source-of-wealth verification.

Suspicious transaction reporting

Suspicious or attempted transactions must be reported promptly to the Financial Intelligence National Centre through the prescribed channel. Tipping off the client about the report is prohibited.

AML record retention

CDD records, transaction documents and internal reports must be kept for at least the statutory period after the relationship ends or the transaction occurs, and produced to supervisors on request.

Structuring as red flag

Splitting cash or transactions to stay below reporting thresholds is prohibited and is itself a suspicious indicator, requiring enhanced scrutiny and a suspicious transaction report where suspicion arises.

Written brokerage agreement

The brokerage contract must be written and state the parties, property, commission, duration and scope of authority. Commission may be charged only under such a written agreement.

Conflicts of interest disclosure

Conflicts must be disclosed in writing and managed. Representing both buyer and seller in the same transaction requires the informed written consent of both parties.

Client money handling

Client and transaction money must not be commingled with the broker's own funds. Deposits follow escrow and trust rules, and a receipt must be issued for money received.

Advertising standards

Advertising must be truthful and not misleading, listings need the owner's authorisation, prices and areas must be accurate, and unlicensed persons must not be presented as licensed brokers.

Professional indemnity insurance condition

A valid policy from an insurer authorised in Bahrain, covering errors, omissions and negligence in brokerage activity at the minimum limit set by RERA, is required at issuance and renewal.

What indemnity insurance excludes

The policy covers civil liability to clients but not fines, penalties, fraud or intentional wrongdoing, which remain the broker's personal liability. Lapse of cover must be reported to RERA.

Escalating disciplinary penalties

RERA may warn, fine, suspend for a period, or cancel the licence, with heavier fines for repeat offences. Serious breaches such as unlicensed brokerage may also carry criminal liability.

Off-plan registration requirement

A developer must obtain RERA approval and register an off-plan project before any marketing, reservation or sale. Selling unregistered off-plan units is a violation subject to fines and cancellation.

Off-plan buyer protections

Sale contracts must be written, registered, and state specification, price, payment plan, delivery date and delay remedies. Material changes to the project require approval and buyer notification.

Project escrow account

A bank account in the project's name held by a licensed escrow agent under a RERA-approved agreement. Buyer payments go into it, and the developer cannot access it freely.

Escrow withdrawal condition

The developer may withdraw funds only against the escrow agent's verification of certified construction progress or other permitted purposes stated in the approved escrow agreement.

Insurance bond substitute

A performance or guarantee bond from an authorised insurer or bank may replace or supplement escrow, covering completion or refund of buyer money and payable on RERA-certified default.

Sales agent scope

A licensed sales agent markets and sells units for a developer or broker, must be registered with RERA and work under a licensed entity, and must disclose the principal represented.

Property manager duties

A licensed property manager handles leases, collections, maintenance and budgets under a written management agreement, keeps client money in separate accounts, and issues periodic statements to owners.

Valuer independence

A licensed valuer applies recognised approaches such as market comparison, income and cost, must be independent, must disclose any interest in the property, and must not accept fees contingent on the value reported.

Owners association formation

An owners association for a jointly owned property is registered with RERA on application by the developer or a required proportion of owners, with constitutive documents, the site plan, and unit shares.

General assembly authority

The general assembly is the supreme body, approving the budget, service charges, appointment of manager and auditor, and major works. Voting generally follows each unit's share in the common areas.

Developer handover duty

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

Service charge apportionment

Service charges and reserve fund contributions are levied on owners in proportion to their registered shares in the common areas, and the association may recover unpaid charges by legal means.

Common area definition

Common areas are the parts of a strata property owned in undivided shares, including structure, roof, facade, stairs, lifts, corridors and shared installations, and cannot be appropriated by one owner.

Alterations to common areas

Changes to common areas need general assembly approval and, where required, RERA or municipal approval; structural changes affecting safety also need engineering certification before work starts.

CPD renewal requirement

A broker must complete the minimum CPD hours per licence cycle set by RERA resolution, through approved providers, and keep a log with certificates for submission at renewal or inspection.

Regulatory hierarchy

The real estate law ranks highest, followed by implementing regulations and RERA resolutions, then circulars and guidance. Lower instruments are read consistently with the law and bind licensees once published.