Implementation of residential contracts in Ejar during the second quarter of 2017

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The General Supervisor of the “Ejar” program at the Ministry of Housing, Engineer Mohammed bin Saleh Al-Bati, revealed that the registration of residential contracts in the “Ejar” network will start in the second quarter of 2017, explaining that the real estate broker's percentage will not change (2.5 % of the value of the lease contract for the first year).

<Al-Batti added that the network is currently concerned with the residential sector, indicating that its application to the commercial sector will be announced later. The Council of Ministers had recently recognized the invalidity of a lease contract that is not registered in the electronic network.

The “Ejar” system governs the relationship between the landlord and the tenant by documenting the lease contract, and can link real estate offices in the Kingdom to a special technical network that shows tenants“ information and their credit history in terms of paying rents and defaults, and the date of payment, whether monthly, semi-annually or annually, in addition to six other services.

The ”Ejar" system allows tenants to pay their rents on a monthly, semi-annual or annual basis. Ejar provides through its electronic platform a standardized documented contract that is agreed upon between the lessor and the tenant to facilitate the conclusion and documentation of the contract, and its wording can be updated so that the model electronic contract achieves the advantage of judicial execution.