The Off-Plan Sales Committee (Wafi) announced the adoption and implementation of the rules governing the sale of off-plan real estate units, effective January 1, 2018, Through its website, the committee outlined the most important regulations governing off-plan sales and leases, including inspection companies, licensing rules, beneficiaries’ rights, and developers’ obligations, It invited its partners to visit its website to review the details of the regulations governing these operations. Amlak Real Estate Newspaper will publish these regulations in sequence according to the sections established by (Wafi).

First: Operating Rules for Inspection Companies:

Article 1:

This article explains the terms and definitions used in the rules.

Article 2:

1. These rules aim to regulate inspection companies involved in projects for the sale or lease of off-plan real estate units.

2 – These rules do not conflict with the regulations governing the sale or lease of off-plan real estate units.

Article 3:

The Committee may contract with any inspection company it deems appropriate through a formal competitive bidding process conducted by the Committee, for the purpose of carrying out the necessary inspection work for the project, thereby enabling the Committee to perform its duties and exercise its powers in accordance with the regulations and rules. The developer shall bear any resulting costs if violations by the developer are found.

Article 4:

The inspection is generally intended, without limitation, to determine the following:

1. The extent to which the developer complies with the provisions of the regulations, rules, and contracts with the beneficiaries.

2. The extent to which the project’s implementation work complies with the approved plans and the established implementation schedule.

Article 5:

The inspection company shall have access to all contracts related to the project, as well as all reports and correspondence submitted to the committee by the consulting firm, the certified public accountant, or the project’s accountant.

Article 6:

The inspection shall be conducted in accordance with the terms of the engagement, whether engineering, accounting, documentary, or a combination thereof. The scope of the inspection includes, but is not limited to, the following:

1. On-site inspection of the project at any time to verify the status of the work and the completion rates achieved.

2. Verification that the actual construction work on-site complies with the approved plans.

3. Reviewing the quantities completed in accordance with the bill of quantities approved by the consulting firm.

4 - Reviewing the reports and statements submitted by the developer, as well as the periodic reports and statements issued by the consulting firm, the account manager, and the certified public accountant.

5 - Conduct a financial review of the statements submitted by the developer to the consulting firm, in addition to the disbursement documents.

6 - Compare the project’s actual progress with the planned progress based on the approved schedule.

7- Carrying out any inspections, surveys, or audits requested by the committee, and contracting with any third party to perform such tasks, such as engineering laboratories.

8- Inspecting the project’s development works upon completion of construction or at the time of handover to verify the condition of the structures and their readiness for handover in accordance with the provisions of the plans and the executed sales contracts.

Article 7:

The inspection company shall comply with the following:

1- To perform its work in accordance with the Committee’s mandate.

2- To submit its reports to the Committee; the Committee may provide copies of the inspection reports to any interested party.

3- To be liable for any error or negligence in its work, or for the disclosure of confidential information to which it has had access during the performance of its duties; the aggrieved party—including the Committee—may seek compensation from the inspection company for any resulting damages.

4. To carry out any inspection work requested by the Committee; it shall not be entitled to contract with any other party to perform any of its duties except with the Committee’s prior approval.

Article 8: The Committee may amend any provision of these rules, and such amendments shall not take effect until they are published.

Article 9:

These rules shall take effect on the date of their publication.