The General Real Estate Authority seeks to regulate the lease relationship between the landlord and the tenant through a set of decisions and regulations that cover the types of contracts included, the mechanism for determining rent, and the procedures for registering contracts on the «Ejar» network.

First: Types of Contracts Covered by the Regulation of the Rental Relationship
The decision regulating the rental relationship covers all residential and commercial contracts, with the exception of agricultural and industrial uses that fall under commercial real estate and are not subject to the requirements associated with the regulation of the rental relationship. This decision aims to unify the regulatory framework for contracts and ensure clarity regarding the obligations of the parties.

Second: Mechanism for Determining and Adjusting Rent
The total rent for residential and commercial real estate leases within the urban area of Riyadh is set based on the total value of the most recent registered lease for the previously leased property. As for properties that have not been previously leased, the rent is determined by mutual agreement between the landlord and the tenant, thereby allowing for flexibility in negotiations and maintaining market stability.

Third: Procedures for Registering the Lease Agreement on the «Ejar» Network
The landlord is required to register the lease agreement on the «Ejar» network; the tenant is also entitled to submit a registration request if the landlord fails to do so. The other party is granted up to 60 days from the date of notification to file an objection; if no response is received within this period, the contract details are officially approved.

Fourth: Are lease agreements automatically renewed?
Lease agreements are automatically renewed unless one party notifies the other of its intention not to renew at least 60 days prior to the contract’s expiration date. This procedure is intended to ensure the continuity of the contractual relationship and to avoid sudden disputes between the landlord and the tenant.

Fifth: Cases of Refusal to Renew or Request for Eviction
A landlord in Riyadh may not refuse to renew the lease or demand that the tenant vacate the property except in specific cases, including:
The tenant’s failure to make payments.
The presence of structural defects that affect the safety of the property or its occupants, as confirmed by an approved report.
The landlord’s desire—or that of a first-degree relative—to use the residential property for personal purposes.

Sixth: Penalties for Violating Regulatory Provisions
A fine shall be imposed on anyone who violates the provisions governing the rental relationship, provided that the amount does not exceed 12 months’ rent for the property covered by the lease agreement. The violator is also required to rectify the situation and compensate the aggrieved party, thereby strengthening compliance with the regulations and curbing violations in the real estate market.