Real Estate Registration: Protection of Rights and Penalties for Violators
Attorney Majid Karoub
The Real Estate Registration one of the fundamental pillars upon which the legal and administrative systems in the Kingdom of Saudi Arabia are based. It serves as a key mechanism for securing real estate ownership rights and protecting them from encroachments and disputes, providing legal assurance to the property owner, enabling them to formally prove their ownership in a manner recognized by government and judicial authorities. Real estate registration also helps establish rights and document various real estate transactions, including sales, purchases, gifts, transfers of ownership through inheritance, and other transactions.
It is also considered the cornerstone of protecting the rights of property owners and real estate investors against any false claims of ownership or tampering with ownership documents, as the documents recorded in the real estate registry serve as the authoritative legal reference for resolving any disputes regarding property ownership and make it easier for parties involved in the real estate sector to verify the validity of ownership, boundaries, and financial obligations associated with the properties.
Real Estate Registration: A Legal Framework
Real estate registration also contributes to economic stability in the real estate market by establishing and consolidating a sound and clear legal environment that supports real estate investments and strengthens the confidence of parties involved in the Saudi real estate system. It also facilitates the resolution of real estate disputes in a legally organized manner.
There are requirements and procedures for real estate registration as stipulated in Article 8 of the Real Estate Registration Law, namely that the property—except for state-owned properties—must have a title deed that meets regulatory requirements, and that the property’s geospatial data be complete. Among the procedures followed in registration is the right of the competent authority to request the disclosure of any documents or data necessary for the validity and integrity of the initial physical registration. The competent authority must carry out the surveying work necessary for the initial physical registration, and it may—without conducting such work—use data related to surveying work approved by the competent authority, if available, in accordance with the regulations, after completing the necessary procedures in accordance with the provisions of the law and the regulations governing the issuance of the property title deed.
Despite the importance of real estate registration in protecting property rights, many owners and investors do not comply with certain legal procedures required for registration, which results in violations of the provisions of the Real Estate Registration Law, such as failing to include in the decision issued by the competent authority a precise and clear definition of the real estate areaand the specified period for receiving applications for the first real estate registration, failure to disclose any documents or data necessary for the validity and integrity of the first real estate registration, failure to issue a title deed after completing the necessary procedures in accordance with the provisions of the law and regulations, failure of the property owner to notify the competent authority of any change in the property description due to the construction, addition, modification, or removal of buildings, within (ninety) days from the date of the change, Failure by the property owner to submit a request to update the information contained in the registry within thirty (30) days of the completion of the property described on the map for the issuance of a title deed, in accordance with the procedures specified in the Law and Regulations.
The Law also stipulates in Article 35 that anyone who commits any of the real estate registration violations mentioned shall be subject to a fine not exceeding one hundred thousand riyals without prejudice to any more severe penalty prescribed by any other law
These procedures and penalties in the Real Estate Registration Law aim to protect real estate ownership and preserve the legal rights of owners by officially registering and documenting all real estate transactions to achieve the law’s primary objective, Owners and investors in the real estate sector must also comply with all relevant laws and regulations, and seek the assistance of legal consulting firms specializing in the contracting, construction, and mega-engineering projects sectors, as they are essential for understanding all regulations related to the registration of real estate.
Former Chairman of the National Committee of Lawyers at the Council of Saudi Chambers
