Ejar Network has revealed the mechanism for transferring property ownership while maintaining existing contracts, confirming that the transfer of ownership to a new owner does not affect the continuity of existing contracts, which remain in effect without the need to cancel or re-sign them.
The network clarified that the new owner can utilize the «change of lessor" service through a licensed real estate broker, whereby all active and electronically registered contracts are automatically transferred, ensuring a smooth transition of the contractual relationship between the parties involved. "Ejar" that this service is part of efforts to enhance transparency within the Saudi real estate market, while preserving the rights of both landlords and tenants and reducing traditional procedures. The digital system allows for continuous monitoring of contract status during a change of ownership, thereby supporting the stability of the contractual relationship.
Availability of the Service to Request a Rent Adjustment
In a related context, the network noted the availability of a service to request rent adjustments upon contract renewal, which aims to regulate the relationship between landlords and tenants through a trusted electronic platform. This service allows the landlord to submit a request to increase or decrease the rent for the next term, provided the request is submitted at least 90 days before the contract expires.
The tenant is notified via the electronic system to make the appropriate decision—either to accept or reject the request. Acceptance results in the automatic renewal of the lease at the new rent, while rejection cancels the automatic renewal and is considered a notice of intent not to continue.
"Ejar" noted that the implementation of this service in Riyadh is currently limited to requests for rent reductions only, in compliance with the decision to suspend annual rent increases, reflecting the platform’s adherence to the rules and regulations governing the market.
These steps are part of “Ejar’s” efforts to support digital transformation in the real estate sector by providing electronic tools that facilitate contract management, enhance transparency, and reduce disputes between parties to the lease agreement.
