The Ministry of Housing announced the opening of registration for real estate brokerage firms and specified the requirements that must be met for a firm to complete registration on the electronic network for rental services. The Ministry, represented by the “Ejar” program, , has approved four requirements for real estate brokerage firms to join the “Ijar” program. Foremost among these is that the real estate broker must be a Saudi national, and that the brokerage firm must hold a valid commercial registration that includes the activities of “management and leasing of owned or leased residential properties” and ”management and leasing of owned or leased non-residential properties.”
The requirements also stipulate that the firm’s registered address must be listed in the National Address Service provided by Saudi Post, and that real estate brokers must complete the training course for real estate brokers before entering into lease agreements.
Engineer Muhammad Al-Bati, General Supervisor of Rental Sector Regulation, explained that the phase of registering, qualifying, and accrediting real estate brokerage firms on the electronic network for rental services is the first step toward preparing these firms to conclude residential lease contracts electronically during the first quarter of 22017, in implementation of the Cabinet’s decision dated 22/9/1437 AH, which mandates that licensed real estate brokers register all residential and commercial lease contracts electronically through the Electronic Rental Services Network.
He stated in a press release: Electronic registration provides real estate brokerage firms participating in the ”Ijar“ program with a range of benefits that brokers will be able to access, foremost among which is the regulation of the real estate brokerage profession, as the ”Ijar“ program accepts contracts only through registered brokers, The online platform provides real estate brokers with advanced tools to verify the accuracy of tenant and landlord information, as well as the landlord’s title deed for the property, thereby reducing potential disputes, The network also provides several services, including electronic payment of rent, periodic notifications regarding financial transactions, and important alerts. The ”Ejar" program will also provide a dedicated database for each real estate broker, enabling them to electronically save and retrieve all contracts processed through the platform without the hassle of storing paper documents, in addition to a number of other benefits."
Al-Bati stated that this phase serves as the first step toward the full implementation of the “Ejar” program, with the aim of reaching the stage of contract documentation and safeguarding the rights of all parties involved in the leasing process, as well as establishing a regulated rental sector in the Kingdom.
In a related development, Engineer Al-Bati announced the allocation of the toll-free number 920005226 to handle all inquiries related to the "Ijar" program, in addition to the launch of the program’s website at www.ejar.sa, where all information and details regarding the program are available.
It is worth noting that the “Ijar” program aims to be the main driver for developing and increasing confidence in the rental sector, and to improve the investment environment within it to achieve a greater balance between supply and demand, thereby ensuring the sector’s sustainability, development, and regulation. It also aims to formalize contracts and protect the rights of all parties involved in the rental process, as well as to draft standardized lease agreements that meet the needs of beneficiaries, and adopting them as enforceable instruments, relying on the qualification and licensing of real estate brokerage firms and the establishment of regulatory and supervisory policies and procedures for their operations, thereby contributing to reducing the number of pending cases related to rentals, and improving the performance of the rental sector and increasing its contribution to the gross domestic product.
