Faqs For First-Time Buyers

FAQs for First-Time Buyers

Posted: 15 June, 2022
Author: Zainab Khalifa
Time to Read: 4 Min
No. of Words: 553

Everyone dreams of having a space that they can call their own. Home or Land ownership is something that happens after a lot of thought process, even if your finances are in control or not. Before you invest a major portion of your savings into your dream home, there are a lot of questions that come into your mind. Here, we are guiding the first-time buyers by answering some of the common questions you may have:

Can anyone buy property in Bahrain?

According to the Bahrain constitution, the citizens are provided housing assistance along with house loans, flats and houses by the Ministry of Housing. Since 2001, foreigners (expats) have also been allowed to buy property in Bahrain, provided that the areas are restricted to specific residential and commercial zones.

Where can non-Bahrainis (foreigners) buy properties?

You can buy land in the following areas: 

  • Ahmed Al-Fateh District
  • Hoora District
  • Bu Ghazal District
  • Seef District
  • District or Northern Manama, including Diplomatic Area
  • Durat Al-Bahrain
  • Amwaj Islands

These areas are also known as freehold areas.  This rule is applicable to resident expats, foreign expats and GCC nationals. However, the maximum possible acquisition of freehold area for an expat is 5,000 square meters. 

Will you get a residence permit if you want to buy property but reside outside Bahrain?

Yes, Bahrain government issues self-sponsored residence permits to all those expats who acquire property in freehold areas. This permit also allows them to sponsor their spouse and children under the age of 18. Moreover, the spouse should not be a paid employee.

The residence permit has two more conditions:

  • The expat should be someone who owns property in Bahrain which is worth at least BHD 50,000. The moment the expat sells off that property, their residence permit also gets canceled automatically. This permit is renewable every 5 years. 
  • The foreign expat requires an approval from the Minister of Justice, Islamic Affairs and Awqaf for acquiring land.
Is deposit required?

Once you come into agreement with a seller, you both need to sign a sales agreement and pay a down payment which is mostly 20% of the whole deal. The balance payment, whether made in installments or full payment should also be stated in the sales agreement. Once the full payment is made, the property ownership is transferred from the seller to the buyer. This should be notarized at the legislation court with a fee of around $40. The property is then registered with Bahrain´s Survey and Land Registration Bureau under the buyer’s name.

It is always advised that you speak with a lawyer or hire a real estate agent so that the process will be faster and easier.

How fast should you register the property once the full payment is done?

It is better to register at the earliest. The buyer also gets a 10% discount if registration is done within 60 days from the completion of the sales agreement.

What are the documents required to register your property?

You need some essential documents to register with the Registration Bureau. This includes your passport, identification card and sales agreement along with the previous owner’s title deed.

Acquiring land in Bahrain is a very systematic and straightforward process. Once you are eligible to buy property, have the right documents and a good real estate agent to guide you, the process will be as simple as can be.

Summary:

 

  • Since 2001, foreigners have also been allowed to buy property in specific residential and commercial zones of Bahrain, called freehold areas
  • The freehold areas specified by the government are Ahmed Al-Fateh District, Hoora District, Bu Ghazal District, Seef District, District or Northern Manama, including Diplomatic Area, Durat Al-Bahrain, and Amwaj Islands.
  • You require a residence permit to buy property if you are residing outside Bahrain.
  • Once a sales agreement is finalized, the buyer needs to make a down payment, which is 20% of the whole deal
  • The property has to be registered with Bahrain´s Survey and Land Registration Bureau under the buyer’s name
  • If registration is done within 60 days from the completion of the sales agreement, the buyer gets a 10% discount
  • The essential documents you require during property registration are passport, identification card and sales agreement along with the previous owner's title deed
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