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Bahrain issues new rules on land distribution for projects

MANAMA, 12 days ago

His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, has issued Edict (64) of 2021, determining the rules and provisions for distributing the lands of the planning or re-planning projects for which the expropriation has taken place, reported BNA.
 
Article (1)
 
Under this rule, owners of the expropriated areas and lands for planning or re-planning purposes shall be compensated in kind, with plots of land from the planning or re-planning project for which the expropriation is taking place, as per the basic price estimated by the appraisal committee for each plot.
 
The following cases shall be exempted from in-kind compensation:
 
*Insufficient number of plots of land for the project or the plan for distribution to those whose property has been expropriated and seek in-kind compensation. The compensation shall be in cash and/or in kind with lands in other regions, according to the basic price estimated by the appraisal committee, provided that the compensation value is not less than the price of the property before the planning or re-planning.
 
*If in-kind compensation is impossible for any reason, including the fact that the property does not meet the minimum real estate area set forth in Article (13) of the Executive Regulations of Decree-Law (3) of 1994 on the Division of Land for Reconstruction and Development issued by Edict (56) of 2009. The compensation shall be in cash, provided that the compensation value is not less than the price of the property before the planning or re-planning.
 
Article (2)
 
The plots of land for the planning or re-planning project for which the expropriation has taken place shall be distributed in accordance with the following rules:
 
*The owner of the real estate located in the area that has been expropriated shall have the priority right to be compensated with one or more plots of land from the new plan at the basic price estimated by the appraisal committee for each plot.
 
*Taking into consideration the location of the property before planning or re-planning and the extent of its connection to the road network.
 
*Taking into account the classification of the property before the planning or re-planning.
 
*The difference between the area of the alternative property and the expropriated property must not exceed 30% whenever possible.
 
*Making sure that the compensation shall be by one or more plots of land in the location or surroundings of the expropriated property whenever it is possible.
 
*The value of the alternative plot of land shall not be less than that of the expropriated property prior to planning or re-planning.
 
Article (3)
 
In-kind compensation may be by combined or separate plots of land in the new plan according to the basic price of each plot.
 
Article (4)
 
In case of a group of endowment plots (charitable endowments) that do not partially or fully meet the minimum real estate area set forth in Article (13) of the Executive Regulations of Decree-Law (3) of 1994 on the Division of Land for Reconstruction and Development issued by Edict (56) of 2009, the expropriated property may be compensated with one or more plots, provided that registration is made in the common ownership system according to the basic price of each plot, and that all plots are under the management of one endowment.
 
Article (5)
 
In case the value of the compensated plot of land exceeds the compensation determined for the expropriated property, the beneficiary shall pay the difference through one of the following ways:
 
*Payment of the full amount of the difference in one go through one of the payment channels approved by the Ministry of Finance and National Economy. In this case, the owner shall be granted a reduction of 20% of the value of the difference.
 
*Signing a declaration of the indebtedness before the notary at the ministry responsible for justice affairs. The declaration may include the payment of the difference in instalments, provided that the instalment period does not exceed four years from the date of signing the declaration, and provided that sufficient guarantees are provided to pay the instalments. 
 
In this case, registration procedures or issuance of any licenses for building or exploiting the property shall be approved only after the full amount is paid.
 
HRH Prince Salman directed the Minister of Works, Municipalities Affairs and Urban Planning, and those concerned, each within their capacity, to implement provisions of this edict, which comes into effect upon its publication in the Official Gazette.



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