RERA strengthens real estate valuation process & practice in the Kingdom & launches training course for financial services sector employees involved in real estate
The Real Estate Regulatory Authority (RERA) has announced a number of measures to further strengthen the real estate valuation process and practice in the Kingdom of Bahrain.
All real estate valuations conducted by licensed valuers
As per the Law 27 and with effect from 2 May 2020, all real estate valuations must be conducted by RERA licensed real estate valuers, this includes valuations commissioned by government agencies, banks and other financial institutions licensed by the Central Bank of Bahrain (CBB), companies and private individuals. The implementation of this policy will lead to greater consistency, transparency and protection for all key stakeholders including investors, financial institutions, home buyers, and sellers of real estate.
Real estate valuation training course for financial service sector employees
RERA is introducing a Real Estate Valuation course designed specifically for bank and financial institutions employees who commission or require real estate valuation reports as part of their role, for example mortgage brokers, commercial lending managers, risk assessment, audit or asset managers. The course will cover issues such as identification of the most appropriate valuation approaches, bases and methods of valuation, and the benefits and obligations of the recently introduced Bahrain Valuation Standards (BVS) for all stakeholders involved in the real estate sector and valuers in particular. Given the current challenges the one-day course will be delivered by webinar in collaboration with RICS and BIBF. The first training session will take place on Tuesday 21stApril, 2020 from 9 AM to 5 PM, to register please email firstname.lastname@example.org
Professionalisation of the sector
Speaking at the announcement H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Chief Executive Officer of RERA said "Valuers play a critical role in the real estate ecosystem and we are pleased to see the response from valuation practitioners who are embracing the changes recently implemented, including the adopting of the Bahrain Valuation Standards and the Professional Progression programme which will provide valuers with the opportunity to attain qualifications that are internationally recognised. We are seeing increasing numbers undertaking the Continuous Professional Development training programmes which augurs well for the future of the real estate sector by building greater investor trust and confidence in the market.
The RERA CEO added ‘Banks and financial institutions depend on professional, valid and reliable valuation reports to ensure the quality and accuracy of asset values on their loan books. Increased confidence in the real estate valuation process will provide an impetus and encouragement for financial institutions to increase their levels of financing for real estate transactions which will ultimately impact on the performance of the banks and financial institutions books and eventually of Bahrain economy’.
Unlicensed Valuers are precluded from conducting real estate valuations and as per Resolution 2 of 2019, and unlicensed real estate valuers will now be subject to sanctions and fines for non-compliance with the Law.
Article 41 of Law 27 of 2017 promulgating the real estate regulation law outlined the requirement for Valuers to be licensed and the fact that practicing Real Estate Brokerage may not be combined with the practicing of Real Estate Valuation. Resolution 2 of 2019 on licensing of real estate valuers, issued on 2 May 2019 outlined the requirements for those practicing real estate valuation and allowed until November 2019 to regularise their operations and apply for a real estate valuer license. To ensure the adoption of international best practices, RERA launched the Bahrain Valuation Standards in October 2019 and announced details of the real estate valuer training and professionalisation programmes.
The RERA website www.rera.gov.bh provides full details on the licensing process for real estate valuers and other information.