The amendments made by the Off-Map Sale and Leasing Committee «Wafi» provide wide options to develop the procedure of selling and marketing the off-plan sale system, as the Wafi Committee issued a decision to amend Article (16) of the licensing rules related to marketing within the Kingdom for real estate development projects with the off-plan sale system, and amended the amounts of financial guarantee provided by real estate development companies.

Flexible Amendments

Decision No. (1-220) was issued according to a meeting held by the committee on 11/17/2017, and based on the regulations related to the sale or lease of real estate units on the map issued by Cabinet Decision No. (536) dated 4/12/1437 AH.

Article (16) of the licensing rules stipulates that «the real estate marketer shall apply for a license to market a project or projects outside the Kingdom after paying the financial fee, according to the form prepared for this purpose, to the committee in paper or electronically», where the value of the financial guarantee provided by the company was amended in case of licensing three or more projects...

The article includes the obligation of the real estate developer to provide a financial guarantee worth 1% of the total value of the project for three months after the end date of the license, with a maximum of “one million” riyals, and the committee in the case of licensing three or more projects to determine the financial guarantee.

Financial guarantee

According to its amendment to Article (16) of the licensing rules, the committee approved a financial guarantee of three million riyals in the case of licensing three to five projects, and five million riyals in the case of licensing six to ten projects, while the value of the financial guarantee reaches 10 million riyals in the case of licensing 11 to 20 projects....

The amendment included providing a financial guarantee of up to 25 million riyals for licensing 51 projects up to 80 projects, and if the company wishes to license more than 81 projects, it is obliged to provide a financial guarantee of 50 million riyals.

The amendment included a financial guarantee of up to 25 million riyals for licensing 51 projects up to 80 projects. The Committee for Sale and Leasing on the Map stated in a statement that the amendment of Article (16) of the licensing rules will be effective after its publication in the official newspaper, explaining that it has the authority to amend any article of the licensing rules without prejudice to the regulations issued by the Council of Ministers to regulate the real estate development activity in the sale or lease on the map system “Wafi”.

Reduce the number of documents

The committee explained that it sought through the amendment of Article (16) to reduce the number of documents and requirements that would delay the real estate developer from issuing the license in order to preserve his time and facilitate him, noting that by making the amendment it aims to serve the real estate market and attract investments in the field of sale and rental on the map, indicating that all licensing requirements help maintain the rights of beneficiaries. .....

Wafi...

A real estate developer can apply for a license to market real estate outside Saudi Arabia on the map, after providing the committee with the commercial register, project ownership documents, evidence of project approval from the competent authorities in the country of the project, the project license from the country of the property, a contract between the real estate marketer and the developer or owner, and an electronic file of all its advertising models and publications, provided that they are compatible with the approved illustrative guide

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Preserving the rights of buyers

In order to preserve the rights of buyers, the real estate marketer of the project undertakes not to receive any payments or sign contracts of any kind within the Kingdom of Saudi Arabia, and his commitment to address all complaints and violations arising from him in this regard.

It is worth mentioning that the Wafi off-plan sale program grants licenses for the sale and rental of real estate units on the map of various types (residential, commercial, investment, office, service, industrial, tourism), the license to market external real estate on the map, the license to sell raw land on the map, the license to market internal real estate on the map, as well as the license to display off-plan real estate units in foreign exhibitions.

Wafi off-plan sale program grants licenses for the sale and rental of real estate units on the map of various types (residential, commercial, investment, office, service, industrial, tourism).