This question often comes up among property owners, especially given the ongoing updates to municipal regulations aimed at improving the quality of life in Saudi cities.
It is natural for confusion to arise between the terms «occupancy certificate» and «building compliance certificate»; as both are issued through the «Baladi» platform, and both are related to the property, but each certificate serves a different purpose and corresponds to a distinct stage in the building’s life cycle. To understand this simply, you can track the property’s journey from the completion of construction through to the stage of continuous use and maintenance.
Stage 1: Completion of Construction and the Occupancy Certificate
When you finish building your property—whether it’s a residential building or a commercial complex—and it’s ready for utility connections, you need to prove that the building was constructed properly and safely. This is where the occupancy certificate comes into play. This certificate can be considered an «entry permit,» or the official document proving that the building complies with the Saudi Building Code and the engineering plans approved in the building permit.
The occupancy certificate answers a fundamental question: Is the building safe and ready for use?
The certificate is issued after construction work is completed and is based on an inspection of the building’s safety and its compliance with the permit and approved plans. Upon its issuance, the construction phase ends, and the phase of actual use of the property begins.
Phase Two: The Passage of Time and the Building Compliance Certificate
After the property is occupied or leased, unauthorized modifications to the facade may appear, such as haphazardly installed air conditioning units, exposed wiring, satellite dishes, or deterioration of the exterior facade. These issues constitute visual distortion.
This is where the building compliance certificate comes into play; it does not focus on the building’s foundations or structural safety, but rather on its exterior appearance and its compliance with municipal regulations.
This certificate attests that the property owner maintains the building’s facade and visible elements and does not detract from the urban landscape of the street or neighborhood.
Unlike the occupancy permit, the compliance certificate is tied to ongoing compliance and applies to buildings located within the targeted streets and areas designated by municipal authorities.
Financial Impact: Why Should Property Owners Care?
Some property owners may believe that delays in issuing certificates are merely minor procedural violations, but their impact can extend to the operation and investment value of the property.
With regard to the occupancy permit, failure to complete the necessary procedures may hinder certain steps related to the use of the building or the organization of its units, especially when there is a need to subdivide residential units or manage them independently.
As for the building compliance certificate, it may affect the ability of commercial activities within the property to complete certain municipal procedures, depending on the requirements of the activity, the building, and the target area.
Furthermore, violations on the building’s facade may expose the owner to warnings and fines and affect the property’s appeal to tenants, especially in commercial buildings located on main streets.
Common Mistakes Made by Property Owners
An old building does not need a compliance certificate
This belief is incorrect. A compliance certificate may apply to both old and new buildings, as long as the building is located within a designated area or on a targeted street.
The tenant is responsible for obtaining a compliance certificate
The primary party responsible for obtaining the certificate is the property owner or their legal representative; however, it is important to outline tenants" obligations in the lease agreement to prevent any alterations that distort the building’s facade.
An occupancy permit does not replace a compliance certificate
An occupancy permit does not replace a compliance certificate, as each covers a different aspect.
The occupancy certificate pertains to the building’s readiness after construction, while the compliance certificate pertains to its exterior appearance and adherence to municipal requirements.
How do you know if your property requires a certificate of compliance?
You no longer need to visit city hall or wait for a paper notice. The »Baladi" platform offers a geographic explorer that allows you to locate the property and verify whether the street or area where the building is located is subject to compliance certificate requirements.
It’s best to check the property’s status on the platform before starting the process, then ensure that any visual irregularities and apparent violations are addressed before submitting the application.
Frequently Asked Questions
Is the occupancy permit the same as the building compliance certificate?
No. The occupancy permit certifies that the building is ready for use after construction is complete, while the compliance certificate focuses on the facade, exterior appearance, and municipal requirements.
Does the occupancy certificate replace the compliance certificate?
No, because each certificate has its own purpose and requirements.
When is the occupancy certificate issued?
It is issued after construction is complete and the requirements for using the building have been met.
Is the building compliance certificate periodic?
The compliance certificate is tied to ongoing compliance with municipal requirements and is subject to the duration and procedures approved for the service.
Where are applications for the two certificates submitted?
Applications are submitted electronically through the Baladi platform in accordance with the requirements of each service.
