The General Real Estate Authority released today, Tuesday, Implementing Regulations for the System for the Sale and Lease of Off-Plan Real Estate Projects, It has begun accepting applications for off-plan project licenses through its online platform.
This is in accordance with the Regulation on the Sale and Lease of Off-Plan Real Estate Projects issued by Cabinet Decision No. 196 dated 03/04/1445 AH and its approved implementing regulations published on the Authority’s website.
49 articles regulating the sale and lease of off-plan real estate projects
The General Real Estate Authority clarified that the implementing regulations for the system governing the sale and lease of off-plan real estate projects contain 49 main articles divided into 5 chapters, covering definitions and general provisions of the system. Chapter One is dedicated to ”Developer Registry” and includes the conditions for registering natural and legal persons, the criteria for evaluating them for inclusion in the Developer Registry, and the conditions for accrediting consulting firms for real estate projects.
the mechanism for licensing and implementing projects
Chapter Two contained provisions regarding ”Licensing and Implementation of Off-Plan Sales and Leasing Projects,“ which covered the mechanisms for off-plan sales and leasing, the requirements for licensing a real estate project, and provisions regarding model agreements between the relevant parties, in addition to the mechanism for disbursement from the escrow account.
Provisions Regarding Delays in Project Implementation
Chapter Three contained provisions regarding “Delays and Failures in the Implementation of Off-Plan Sales and Leasing Projects,” where the regulations specified the additional period granted for project completion in the event of a delay, and stipulates the consequences of project delays. It also outlines the methods, approaches, and procedures to be followed to address delays and failures.
Chapter Four of the regulations covers provisions on “Supervision, Inspection, and Enforcement,” which outlined the private sector’s role in the technical supervision of real estate projects, as well as the roles and responsibilities assigned to enforcement, oversight, and inspection officials, and provisions regarding violations in the implementation of off-plan sale and lease projects, The regulations conclude with Chapter Five, which is dedicated to “Final Provisions” regarding the mechanisms and means for reporting violations. The executive regulations can be viewed
on the Authority’s official website at https://rega.gov.sa/.
It is worth noting that the General Real Estate Authority operates through the real estate legislative framework to actively contribute to the development of the legislative and regulatory environment for the real estate sector, enhance its transparency and reliability in line with the Kingdom’s economic and investment momentum, and strengthen its role and increase its contribution to the national economy.
