Riyadh: The Kingdom of Saudi Arabia (KSA) has introduced a new system for the sale and rental of off-plan real estate projects, which was approved by the Council of Ministers in September 2023.
The system, published in the official daily “Umm Al Qura,” aims to enhance transparency and security in real estate transactions, protecting the rights of buyers, renters, and financiers.
The new system stipulates that real estate developers cannot sell or rent off-plan projects without being registered in the developers register.
Developer is prohibited from advertising or showcasing the project in local or foreign media without legal licensing from the relevant authority.
The developer is committed to commencing construction work within six months of obtaining their license.
The developer is committed to completing the project on time, and in case of unintentional delays, the buyer will receive predetermined financial compensation.
Violations of licensing laws, including misappropriation of funds, misuse of funds, and failure to deposit funds in escrow accounts, can result in imprisonment of up to 5 years or fines up to 10 million Saudi Riyals, or both.
