Endowment Sukuk Conflicts with Ejar An organizational issue that hinders the documentation of completed contracts

Rental documentation platforms face technical and organizational difficulties in accommodating endowment and receivership sukuk in their current paths

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A segment of the real estate sector, especially those involved in the management and leasing of endowments, face a recurring organizational issue when trying to document rental contracts through Ejar: the conflict of endowment ownership deeds with the technical and organizational requirements adopted within the platform.

A segment of the real estate sector, especially those involved in the management and leasing of endowments, face a recurring organizational issue when trying to document rental contracts through Ejar. <This issue is rooted in the nature of the Waqf as an independent legal entity, where title deeds are issued in the name of «Waqf» as the legal owner of the property, not a natural individual or a commercial establishment. In contrast, Ejar's platform relies on specific paths to verify ownership, limited to individuals, commercial or non-profit records, with no dedicated path for endowments that hold independent deeds that are not digitally linked to these records.

Waqf. <The conflict is more apparent when trying to enter the commercial record of the endowment, as it is rejected because it does not match the number written in the endowment deed, which is often an endowment identification number issued by the authority competent to regulate endowments, linked to the legal instruments system, and differs in its reference and function from the numbers of commercial records or other administrative records, and does not fall within the numbers of commercial records issued by the Ministry of Commerce. The registration of the Nazir as an individual owner is not legally acceptable, as the Waqf deed explicitly states that the property belongs to the Waqf itself, while the role of the Nazir is limited to management and disposal under a judicial guardianship deed.

The role of the Nazir is limited to management and disposal under a judicial guardianship deed.

Lack of a technical track within the platform

In some cases, even when all the contract data is completed according to the endowment deed, when the contract is sent to the notarization stage, a notice stating that «the commercial register is incorrect» appears, which reveals the absence of a clear technical path within the platform to deal with endowments with double digital reference between the judicial and regulatory authorities.

The issue is exacerbated by the platform's requirement to issue an electronic proxy for the caretaker, despite the fact that the deed of caretaker is an original judicial authorization issued by the court and cannot be replaced by a proxy, in addition to the fact that the caretaker may not appoint himself, which makes this requirement inapplicable in practice.

The platform requires the issuance of an electronic proxy for the caretaker. This reality puts real estate brokers and endowment custodians in a real dilemma, as contracts cannot be documented in the form of a commercial establishment, a non-profit organization, or an individual, despite the completion of legal and statutory documents and the integrity of ownership, which leads to the disruption of rental contracts and delays in benefiting from endowment objects.

Real estate brokers and endowment custodians are faced with a real dilemma.

The need for direct institutional coordination

In light of this, there is a need for direct institutional coordination between the Ejar platform and the relevant authorities, primarily the Public Authority for Real Estate, the authority responsible for regulating endowments, and the judicial authorities, in order to develop an approved path that takes into account the specificity of the endowment as an independent legal and organizational entity, and allows a clear technical link between endowment deeds and related administrative records.

The unification of digital references between endowment instruments and electronic real estate systems is a necessary organizational step in light of the accelerated trend towards digital transformation and contract documentation, ensuring the preservation of rights, the continuity of endowment investment, and limiting the conflict of regulations or disruption of legitimate interests.

Our goal is to create an approved path that takes into account the specificity of the endowment as an independent legal and organizational entity.

@alsmsamaqar