Partner and head of international at Trowers & Hamlins, Abdul-Haq Mohammed discusses the implications of the first major case since the establishment of RERA in 2018 where the authority has used its powers against a developer. Here, he explores the powers that RERA has at its disposal to take action when violations are discovered and how this could affect the development landscape in Bahrain. The situation The Real Estate Regulatory Authority in Bahrain (RERA) has recently taken action against a high-profile development in Bahrain, suspending the licence of the developer for 3 months due to undisclosed violations of law 27 of 2017 promulgating the Real Estate Sector Regulation Law (the Real Estate Law). It is a significant step in RERA demonstrating the extent of its powers and showing the real estate sector in Bahrain that non-compliance with the Real Estate Law will be taken seriously. One of the main aims of the Real Estate Law is to protect buyers and end-users of off-plan projects. This is reflected in RERA’s recent decision to suspend the developer’s licence which was taken, according to RERA, to protect the buyers’ funds accumulated for the project. . RERA is able to initiate an investigation where there is reason to believe a violation of the provisions of the Real Estate Law has occurred. RERA may have suspicions about a developer either through receiving complaints or through its own investigations. Legal implications Under the Real Estate Law, when a violation is discovered, RERA must order the violator to cease its activities and remedy the effects of the violation. This should be done immediately or within the...