New bill aims to thaw frozen property transactions

TDT | Manama

Email: mail@newsofbahrain.com

A bill aiming to stop property transactions from being automatically frozen during lawsuits—unless a judge orders it—will go before Parliament on Tuesday.

Under current rules, filing a lawsuit can immediately block ownership registration, causing delays and uncertainty. Supporters argue this disrupts the work of registration offices and complicates property transactions.

The Survey and Land Registration Bureau (SLRB) has reported difficulties due to multiple claims on the same property, often triggered by legal disputes. Lawmakers say inconsistent enforcement of the rule has led to unnecessary disruptions for buyers and sellers.

However, the government has warned that changing the law could create further instability in the property market. It expressed concerns that conflicting claims may accumulate on a single property before courts can issue rulings, making it harder to resolve disputes fairly.

The Ministry of Justice, Islamic Affairs and Waqf backed the government’s stance, while the SLRB raised similar objections. It cautioned that property owners facing lawsuits might continue selling to others while disputes remain unresolved, making it harder for claimants to recover their rights.

The Real Estate Regulatory Authority called for further review, while the Bahrain Property Development Association (BaPDA) suggested a compromise—early judicial review to decide whether registration should be suspended, with a temporary freeze in place until a judge rules.

Despite these concerns, the Public Utilities and Environment Committee has recommended proceeding with the bill. Alongside the proposed changes to Article 24, the committee has suggested revisions to Articles 22 and 41 to clarify how court rulings affect those acquiring property during ongoing disputes.