The CEO of the Public Authority for Real Estate, Abdullah bin Saud Al-Hammad, approved the procedural guide for the sale and leasing of real estate projects on the map, which will enter into force immediately upon its publication in the official gazette “Umm Al-Qura”.
This guide comes as a comprehensive regulatory tool containing 55 different cases related to real estate developers, projects or related parties, which are dealt with according to specific detailed procedures, reflecting the Authority's keenness to develop work mechanisms in the sale and rental of real estate on the map sector, which constitutes one of the main pillars in the development of the Saudi real estate market.
Strict regulation of off-plan sales and leasing procedures
The guide aims to establish a tight regulatory framework for the sale and leasing of real estate units before their construction is completed, including the procedures for registering developers in official records, whether they are natural or legal persons. It also regulates requests related to raising the developer's assessment, updating the assessment scores, and suspending or canceling the registration in case of violating the approved standards.
The guide aims to establish a tight regulatory framework for the sale and leasing of real estate units before they are completed.
Management of Escrow Accounts and Buyer Protection
The guide addresses a number of sensitive financial situations, such as the mechanism for transferring escrow account assets to the project account of the substitute developer, or disbursing from the escrow account to repair defects in projects. It also includes procedures for notifying the developer of defects and requesting the transfer of amounts within sub-accounts without prejudice to the rights of debtors.
The guide addresses a number of sensitive financial situations.
Strict measures to deal with violations and defaults
The guide also includes procedures for suspending violating real estate projects until the violations are removed, and revoking licenses in the event that decisions are issued by the Supervisory Committee to deal with defaulted projects, whether by returning funds, consensual liquidation or referral to the competent court.
It also allows the real estate developer to submit a request to approve partial or total completion of the project, and submit requests to change the unit models or the legal track of the project, especially in cases that require moving the project to the "third track" reserved for properties that are not registered in kind.
Among the cases regulated by the guide is the request to activate the escrow account for a specific scope within the project, in addition to the mechanism of replacing a developer in case the project fails to sell or lease, to ensure the continuity of implementation and protect the rights of buyers and beneficiaries.
Activation of escrow accounts and administrative replacement
To view the procedural guide for selling and leasing off-plan real estate projects. Click here
