It was announced The General Real Estate Authority announced that it will begin tracking financial transactions related to rent payments made through digital channels on “Ejar” starting January 15, 2024. The Authority clarified that the restriction of payments to digital channels on "Ejar" applies to all residential leases, as after this date, no proof of rent payments made outside the digital channels on "Ijar" (Mada and Sadaad using billing number 153) will be accepted, adding that this requirement does not apply to commercial lease agreements.
Phased Phase-out of Electronic Receipts
The Real Estate Authority added that, starting on this date, it will begin the phased discontinuation of issuing electronic receipts for new residential leases, as payments will be automatically settled upon payment through one of the digital channels, without the need to issue a receipt, This is in accordance with Cabinet Decision No. (131) to establish the necessary arrangements for providing an electronic payment service for lease payments, noting that this benefits those in the real estate rental sector by making it easier for tenants to fulfill their financial obligations through digital channels and deposit the funds into the landlord’s bank account as specified in the lease agreement.
Landlords and tenants must have their lease agreements notarized
The Real Estate Authority confirmed that this process begins with the landlord and tenant having the lease agreement notarized through a real estate broker licensed by the Authority, followed by the use of digital payment channels on “Ijar” to process payments, whereby the rent payment, once made through these digital channels, is transferred to the landlord’s bank account—as specified in the lease agreement—within 5 business days.
It is worth noting that “Ejar” has highlighted the benefits of digital payments, the most notable of which are protecting the rights of all parties to the lease agreement, documenting financial transactions, and eliminating the need to issue electronic receipts, in addition to promoting electronic transactions, increasing transparency in real estate operations, reducing real estate fraud, and facilitating payments for tenants by allowing partial payments, as agreed upon by both parties.
