It was revealed by The General Real Estate Authority has announced the requirements for registering an individual in the Real Estate Developers Registry within the system for the sale and lease of off-plan real estate projects.
It clarified that these requirements include the following:
- Completion of the real estate developer qualification program.
- A list of projects completed by the individual, accompanied by proof of completion.
- A certificate of good standing from the individual’s credit bureau.
- A certificate of registration for individual value-added tax.
The General Real Estate Authority issued the executive regulations for the system governing the sale and lease of off-plan real estate projects last May and began accepting applications for off-plan project licenses through its online platform.
This comes in accordance with the Regulation on the Sale and Lease of Off-Plan Real Estate Projects issued by Cabinet Decision No. 196 dated 04/03/1445 AH and its approved implementing regulations published on the Authority’s website.
The Authority stated that licensing the sale and lease of off-plan projects contributes to regulating the activity, curbing violations in the off-plan real estate development sector, and increasing the supply of commercial, residential, industrial, tourism, and other real estate products.
It added that the system is considered one of the main financing channels for real estate developers, a key enabler of the real estate market, and enhances the sector’s credibility through the governance mechanisms embedded in the system. It called on all real estate developers wishing to benefit from the system to submit an application for qualification—if they are not already qualified— —and to obtain the necessary licenses to conduct business through the dedicated online platform designed to receive qualification and licensing applications for off-plan projects of all types and forms.
In accordance with licensing requirements, applicants must complete the qualification program approved by the Authority and submit a project feasibility study that includes estimated financial, construction, and marketing data for the project, expected financial and administrative expenses, the delivery timeline for the units, and the expected sources of financing. They must also provide evidence that the real estate project complies with the regulatory requirements for building permits, engineering plans, and architectural designs.
