The off-plan sales and leasing program “Wafi” has adopted rules and standards for the technical and financial qualification of real estate developers for off-plan sales projects. The rules are as follows:
Article (1)
The following words and phrases have the meanings indicated opposite each of them:
Regulations: Regulations relating to the sale or lease of off-plan real estate units, issued by Cabinet Resolution No. (536) dated 4/12/1437 AH.
Rules: Technical and financial qualification rules and standards for real estate developers for off-plan sales projects.
Activity: Selling off-plan real estate units, whether commercial, investment, office, service, industrial, tourism or other, regardless of the method of their development or construction.
Committee: Committee for the sale or lease of off-plan real estate units.
The Register: The register of qualified real estate developers after the committee approves their registration and grants them a certificate to that effect.
Qualification Certificate: A regulatory document granted to engage in off-plan sales or leasing activities after passing the Real Estate Developers Qualification Program.
Qualification applicant: The institution or company wishing to apply for a qualification certificate.
Article (2)
Without prejudice to the regulations relating to the sale or lease of off-plan real estate units and the rules of procedure issued by the committee, these rules aim to:
1- Increased reliability in the activity.
2- Regulating the provisions for the technical and financial qualification of real estate developers.
3- Encouraging real estate developers to invest in the activity.
Article (3)
1- To apply for a license to sell or lease off-plan, a qualification certificate is required.
2- The person who obtained the qualification certificate shall be registered in the register stipulated in Clause (Fourth) of the regulations.
Article (4)
The applicant submits their application to the committee after paying the financial fee, according to the form prepared for this purpose, attaching the requirements in accordance with the attached qualification standards.
Article (5)
Without prejudice to the provisions of Article (4) of these rules, the committee may grant companies listed on the financial market that are engaged in real estate development, off-plan sales, or building construction activities, direct qualification for real estate developers, after they submit the application form and pay the financial consideration.
Article (6)
1- The applicant for qualification may apply through one of his sub-registries.
2- The applicant for qualification may form an alliance with a qualified real estate company, provided that it submits the following requirements:
A- Commercial register.
B- Certificate of membership in the Chamber of Commerce and Industry.
C- A certificate from the General Organization for Social Insurance, accompanied by a list of subscribers currently employed.
Article (7)
The committee considers the qualification applications submitted within (ten) working days from the date of completion of the application, and issues its decision to approve the granting of the qualification certificate and registration in the register of real estate developers, or to reject it with a statement of the reasons for that.
Article (8)
1- If the required documents and paperwork for reviewing the qualification application are incomplete, the committee shall take the following action:
A - Requesting additional documents or papers, or requesting the applicant to come to the committee headquarters to answer any inquiries.
B - Notifying the applicant for qualification of the comments on the application to complete them and to ensure that his application meets the conditions within a period of (sixty) days.
C - The committee shall reject the application if the period referred to in paragraph (B/1) of this article is not adhered to.
Article (9)
The qualification certificate is awarded to the qualification student who obtains a score of no less than (30%) for financial and technical abilities, and a score of (35%) of the overall total.
Article (10)
1- The applicant for qualification submits a request to renew the qualification certificate and extend his registration in the register before the expiry of the certificate period by no less than (fifteen) days. If (thirty) days have passed since the expiry of the certificate period, the renewal request shall be treated as a new qualification request.
2- Renewal of the qualification application requires fulfilling the conditions and standards contained in these rules in accordance with the renewal application form prepared for this purpose.
Article (11)
Without prejudice to the provisions of Articles (7) and (8) of the rules, the committee may cancel the qualification certificate in either of the following two cases:
1- Opening any liquidation proceedings under the Bankruptcy Law for the Qualified or Liquidation under the Companies Law.
2- The qualified person commits violations of the regulations or fraudulent acts.
Article (12)
Cancellation of the qualification certificate results in cancellation of the registration in the register.
Article (13)
These rules shall be effective from the date of their publication.
