The Support and Liquidation Center «Enfaz» and the Off-Plan Sales Committee «Wafi» signed a joint cooperation agreement that allows the Committee to enlist the help of “Enfaz” to handle real estate projects licensed for off-plan sales in the event of default by assigning them to the Center to oversee their liquidation; with the aim of ensuring and safeguarding the rights of all contracting parties in the project, including buyers, companies, and financing entities, The Center was represented by its CEO, Mr. Turki Al-Khalif, while the Committee was represented at the signing by its Secretary-General, Mr. Nayef Al-Sharif.
The liquidation option for projects licensed for off-plan sales is one of the regulatory tools that enables the Off-Plan Sales Committee «Wafi»—in its capacity as the authority legally authorized in the Kingdom of Saudi Arabia to issue off-plan sales licenses—to achieve its objectives of regulating the activity and protecting buyers" rights in the event that the developer is unable to implement or complete the project in accordance with the timeline and the models and specifications previously approved by the Committee, The liquidation option also serves to mitigate the investment risks associated with this type of real estate investment; which in turn strengthens support for investments in the sector and increases the number of off-plan projects; recently, real estate investments licensed under the off-plan sales system have seen growth in the number of real estate units they offer, with high completion rates.
The Support and Liquidation Center »Enfaz"
It should be noted that the Support and Liquidation Center »Enfaaz" is an administratively and financially independent government center that seeks to facilitate cooperation between judicial and government authorities in the liquidation and sale of assets assigned to it by judicial authorities, or those not subject to legal disputes, by assigning them to technically specialized entities and supervising their work; thereby contributing to preserving the value of the assets, expediting the process of fulfilling the rights of beneficiaries, and realizing the legal and economic value for society.
”Wafi" Program Licenses
It should be noted that the ”Wafi” program grants sales licenses for off-plan real estate units of various types (residential, commercial , investment, office, service, industrial, and tourism), and works to qualify the real estate developers implementing these projects. Furthermore, the sales licenses it issues require the demarcation of project land and the management of the contractual process between the relevant parties, including oversight of the project’s escrow account at a local bank and regulation of disbursements from it based on completion percentages and engineering reports submitted by the engineering consultant and the certified public accountant, as well as periodically monitoring the engineering work and its quality.
