After the Cabinet approved the decision and published it in the Official Gazette, questions about the mechanisms for implementing the expropriation of real estate in the public interest and the temporary seizure of real estate are increasing, as the new law includes 39 articles that regulate the process of expropriation and temporary seizure of real estate.<\/p>\n
The system provides multiple options for the owner to be compensated, in order to strike a balance between development and protection of private rights, as the system provides for compensating the owner with the market value of the property plus 20%, as well as providing compensation for damages that may be caused to the owner, such as rental costs.<\/p>\n
The compensation mechanisms are not limited to providing a financial amount to the owner, but there are other options such as obtaining an alternative property or shares in the expropriated project, and to ensure transparency and that everyone obtains their full right, it was decided to publish expropriation decisions in the official newspapers and allow for objections.<\/p>\n
According to the law, those whose property is expropriated are exempted from the real estate transaction tax resulting from the purchase of a replacement property from the expropriated property, as well as from the white land fees if the compensation is a replacement land.<\/p>\n
If a person is compensated with an alternative piece of land, it must be in the expropriated location, or any other location where similar benefits are realized to the expropriated land.<\/p>\n
Compensation is not limited to landlords, but is also available to owners of affected businesses and small enterprises, which emphasizes the Kingdom's keenness on transparency.<\/p>\n
The implementation of the real estate expropriation system in the public interest is part of the Kingdom's efforts to support the investment environment and enhance the confidence of local and foreign investors in the real estate market, especially as it is witnessing competition and the attention of investors around the world is focused on it as a promising market.<\/p>\n
The law defines the cases in which expropriation and temporary seizure of property is carried out, namely when implementing projects related to the development of the facilities of the Two Holy Mosques and Hajj and Umrah, roads and transportation projects of all kinds, whether land, sea or air, or energy sector projects, such as electricity and water networks and sewage systems.<\/p>\n
The application of expropriation and temporary seizure of property will begin 120 days after the system is published in the official gazette \u201cUmm Al-Qura\u201d.<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>After the Cabinet approved the decision and published it in the Official Gazette, questions about the mechanisms for implementing the expropriation of real estate in the public interest and temporary seizure of real estate are increasing, as the new law includes 39 articles that regulate the process of expropriation and temporary seizure of real estate. What is the amount of compensation for expropriation in the public interest in the Kingdom? The system provides ... 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