The most prominent articles of the Real Estate Contributions Law approved by the Council of Ministers yesterday are:

1. Get a license from the General Authority for Real Estate, and the approval of the Capital Market Authority to offer the contribution
2. The land must be owned by a valid legal deed, based on the statement of the issuing authority.
3. The land must be approved by an official statement from the competent authority.
4. The percentage of the licensee must not be less than the percentage specified by the regulation.
5. Qualifying and classifying licensees to practice real estate contribution activity.
6. Limit the real estate contribution to a period of time.
7. Return all amounts to shareholders without deductions when the time period for subscription expires without completing the full value of the real estate contribution.
8. The Capital Market Authority shall organize the shareholders“ register for the real estate contribution.
9. The licensee's responsibility for all matters related to the real estate contribution towards the shareholder, the Authority, the Capital Market Authority, and related parties.
10. Deposit the amounts of cash contributions to the real estate contribution and the financial returns in a special bank account for the contribution called ”Escrow Account". 11.
11. The real estate contribution certificate has the authority of proof before the judiciary, and cannot be challenged except by forgery.
12. Appoint a chartered accountant and an engineering consultant for each real estate contribution.
13. The formation of an association of all shareholders registered in the contribution register called the "Shareholders" Association."
14. The assets of the real estate contribution can only be sold after being evaluated by accredited appraisers.
Violators of the provisions of the Law shall be punished by: A warning, suspension of the license for a period not exceeding one year, revocation of the license, or a fine of up to 10 million riyals.
15. The General Authority for Real Estate in the draft Real Estate Contributions Law: Control and supervision, issuing, amending and revoking licenses, issuing conditions, etc. in order to achieve its regulatory and legislative role in order to raise the efficiency of the real estate market.

Real Estate Contributions System

Falah Al-Subaie