<\/p>\n
The new amendments to the executive regulations of the system of renting and evacuating real estate by government agencies revealed several items that will be applied to all government agencies, ministries, departments, public institutions and agencies with independent public legal personality. According to the provisions of the new regulation, the financial provision must be available in the budget of the renting entity, provided that the area of the property is within the limits of the government's need and the rental value is within the market value and not exaggerated, and the regulation will be implemented starting from this month for new contracts and contracts that have expired or will be renewed.<\/p>\n
In the case of renting a property without a legal deed, the regulation requires the approval of the Ministry of Finance and the absence of a suitable property with a legal deed, while it stipulates that the owner of the property must not be a person with whom the regulations prohibit dealing or against whom a court decision or judgment has been issued.<\/p>\n
As for the lease term, the regulation requires that it should not be less than one year and not more than three years, renewable or extendable, provided that the contract stipulates that the government entity has the right to extend the lease without the lessor's consent, and that the extension should be after the expiration of the first term only and not more than three years, with the possibility of increasing the rent in the extension period by no more than 10% of the value of the first lease.<\/p>\n
\u00a0With regard to the government entity's desire to rent a building to be constructed, the regulation requires that the conditions and specifications of the building and the justification for renting be sent to the Ministry of Finance for real estate whose rental value exceeds 200,000 riyals, provided that the lease period does not exceed twelve years and may not be extended or renewed.<\/p>\n
The regulation emphasized that the lease contract ends in four cases: the expiration of the agreed period and the unwillingness of the tenant to extend the lease, or if the property becomes unfit for use due to structural defects or the danger of the building, or if it is proven that the lessor himself or through others attempts to bribe an employee of the tenant, or if the public interest requires it, and the lessor may not object to this or demand the rent for the years after the date of vacating the property. The new regulation clarifies that the government entity may sublet part of the property's facilities without referring to the owner or taking his consent.<\/p>","protected":false},"excerpt":{"rendered":"
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