an introduction

:-Definition of off-plan sale: 

It is the sale of a property before a structure is built on it. Usually pre-builds are marketed to real estate developersEarly adopters as developments so that the buyer can secure more favorable financing terms from lenders Real estate investors or real estate speculators buy off-plan properties with the aim of making significant capital gains.This financial return may occur because developers who sell off-plan properties often offer financial incentives or discounts to early adopters. Additionally, there may be an opportunity for capital growth in a bull market and a development cycle of between 12 and 24 months.It is no longer a secret to anyone the importance of the housing and real estate sector in the Kingdom as a tributary of investment. Vision 2030 projects have devoted all their attention to housing and real estate, and the far-reaching goal is to double the percentage of citizens who own their homes by 2030 to about 70% of Saudi nationals. In this regard, the Wafi program issued by the Ministry of Housing activates the off-plan sales option in Saudi Arabia. The off-plan sales program is one of the programs aimed at developing the real estate sector.

The decision was issued on 12/04/1437, and it was published on 01/06/1438, to be effective and implemented from 07/05/1438. This program represents a simulation of the successful experiences of some countries in this field, as it is a program that seeks to regulate the activity of selling or leasing Real estate units, whatever their purpose or method of development, before or during the stage of development or construction, and the program obliges real estate developers to implement according to the time plan for each project according to the approved models and specifications.

Then, the decision of the Off-plan Real Estate Unit Sale or Leasing Committee No. 138/1 dated 4/11/1440 was issued approving the amendment of Article 16 of the licensing rules issued under Resolution No. 1/220 dated 9/3/1439 based on the controls related to the sale and lease of real estate units. On the map issued by Cabinet Resolution No. 536 dated 4/12/1437

The committee indicated that it sought to reduce the number of documents and requirements that would delay the real estate developer from issuing the license in order to preserve his time and to facilitate it, as it aims through this to serve the real estate market and attract investments to it in the field of off-plan sale and rental, pointing out that all licensing requirements help To preserve the rights of the beneficiaries.

. We will address the points of explanation successively:-

First: We begin by clarifying some definitions:-

1) The developer is the person authorized to sell, rent, buy and develop real estate as a master developer.

2) The sub-developer is the person who is authorized to sell, rent, buy and develop real estate units under an agreement with the developer.

3) The beneficiary is the purchaser or lessee of the real estate unit.

4) The map is a detailed engineering scheme of the real estate units subject to sale or lease approved by the competent authority.

5) The projects register is the register set by the committee to arrange and document contracts for the sale or lease of real estate units off-plan in the licensed projects and the actions contained therein.

6) The consulting office is the engineering supervision office licensed to work on engineering consultancy.

7) The escrow account is the bank account of the project in which the amounts paid by the beneficiaries or financiers of the project are deposited.

8) The account custodian is the banking institution licensed by the competent authority.

9) The disbursement document is a document designed by the developer in coordination with the account custodian, according to which the disbursement is made from the escrow account for the construction of the project.

10) The committee is a committee for selling or renting off-plan real estate units.

11) The rules are the rules issued by the committee regulating the sale of real estate units off-plan

12) The project is the construction of buildings and land development with the aim of selling or renting real estate units off-plan.

13) Al-Wahd real estate is the separated part of the project, and this includes the parts of the white lands if the project is for establishing the infrastructure.

Second: The rules regulating the activity of off-plan sales for small and medium enterprises:

1- Definition of small projects:-

 They are projects that engage in off-plan sale or rental activity, regardless of their purpose, whether residential, commercial, investment or other, and whatever method of development or establishment, in which the developer receives amounts from the beneficiaries or financiers of the project, provided that the project area does not exceed 5000 square meters.

2- Definition of medium projects:-

  They are projects that engage in off-plan sale or rent activity, regardless of their purpose, whether residential, commercial, investment or other, and whatever method of development or establishment, in which the developer receives amounts from the beneficiaries or financiers of the project, provided that the project area exceeds 5,000 m2 and the project area does not exceed 10,000 m

3- Conditions for obtaining a license for small and medium enterprises:

The developer submits an application for a license for a small or medium project with a paper or electronic application prepared for that, with the following attached to it:

1. a) A copy of the commercial register for individual establishments or establishments.
2. b) A certificate that includes the integrity of the developer’s credit history from a company licensed to provide credit services, provided that the date of issuance of the certificate does not exceed three months from the submission of the application.
3. C) A copy of the electronic deed of ownership of the project property and a letter of approval of the marginalization on the deed of the project land, certified by the Chamber of Commerce.
4. d) Statutory licenses and engineering and architectural designs approved by the competent authorities in approving the construction of the project.
5. e) Contract form from the beneficiary attached to it:-

1- The project of the owners association system according to the system of ownership and sorting of real estate units.

2- Payment schedule.

3- A statement of the project unit prices, number and area.

1. f) Providing a guarantee instrument (a promissory note) in the amount of one million riyals for small projects and an amount of three million riyals for medium projects.

In the event that the developer does not own a land for the project, it is required to provide the committee with the agreement between the developer, the owner of the land or the owner of its usufruct, provided that the agreement includes the following:

2- A statement of the responsibility of the owner and developer and their obligations – jointly – to the beneficiaries.

3- Enable the developer to establish real estate units.

4- The obligation of the owner to sign contracts with the beneficiaries and empty the contracts in their names or to authorize the developer to do so.

5- The owner’s commitment not to create any actions that would harm the rights of the beneficiaries, including the termination of the agreement with the developer, except after the approval of the committee.

6- The owner’s commitment to the provisions of the controls issued under Ministerial Resolution No. 536 dated 4/12/1437 and amended by Cabinet Resolution No. 525 dated 9/9/1440, which decided “The Committee shall refer the project documents and papers related to it – after the completion of its liquidation or sale to the Notary Public for completion Unloading procedures, provided that this is done as a matter of urgency.

 And the rules issued by a decision of the Off-plan Sale and Rent Committee 220/1 dated 9/3/1439.

4- Developer obligations:

1- Allocating a bank account for the project and providing the committee with the account number.

2- Collecting all buyers’ payments in the project in the designated account.

3- Providing the Committee with a copy of the real estate unit contract within ten working days from the date of signing the contract with the buyer.

4- Bring a visiting consultant.

5- Submit a quarterly report that includes, as a minimum, the following:

1. a) Buyers’ data and contact information with them.
2. b) The approved report form prepared by the engineering consultant, accompanied by the work receipt reports for all the completed stages.
3. c) Payments that have been deposited from buyers according to the payment schedule.
4. D) bank statement.

6- Keeping all project financial documents for deposit and exchange operations for a period of no less than ten years.

Third: Controls and terms of off-plan sales in Saudi Arabia:

Legal controls for selling or renting real estate units off-plan Cabinet No. (536) dated 4/12/1437 AH, provided that these rules enter into force as of the date of their publication in the Official Gazette on 10/04/1439 AH

First: the purpose

These rules issued by the Off-Plan Sale or Leasing Real Estate Units Committee aim to regulate the sale or lease of off-plan real estate units with an indication of the beneficiaries’ rights and developers’ obligations in projects of selling or leasing any off-plan real estate units, regardless of their purpose, whether they are residential or commercial Is it investment, office, service, industrial, touristic or otherwise, and whatever the method of its development or establishment, in which the developer receives sums from the beneficiaries or financiers of building construction or land development projects with the aim of selling or renting real estate units on the map, provided that these rules do not violate the controls Related to the sale or lease of real estate units on the map

Second: Developer obligations

The developer must start and finish the works on the specified date and use the funds deposited in the escrow account for the purposes assigned to them while following up and supervising the subcontractor’s implementation of the works assigned to him, in accordance with the approved technical specifications and achieving the approved technical specifications in accordance with the designs

 The project, and for each of its units, and the delivery of the unit to the beneficiary on the date specified in the contract and according to the approved technical specifications on the basis of which the contract was made.

 And take the necessary measures, provided that all notifications and correspondence with the beneficiary are in writing through the means of communication specified in the contract.

And to provide all public services for the unit and the project, including the delivery of electricity and water to the real estate unit, and bear the fees for that. He is also obligated to connect the unit to the public sewage network or provide a suitable place for it.

 The beneficiary is delivered a copy of the owners association system, to each beneficiary upon signing the contract and emptying the unit deed in the name of the beneficiary or registering the lease contract no more than 30 days from the date of issuance of the construction completion certificate and preparing and submitting reports requested by the competent authorities in accordance with the controls determined by the committee.

In the event that the developer delays the implementation of the project due to external circumstances, it must be immediately disclosed to the committee and the beneficiaries, provided that the developer bears all the expenses of the real estate unit until the date of its delivery to the beneficiary or the date of its emptying, without prejudice to the right of the committee to prepare a mandatory form regulating the relationship between the developer and the beneficiary.

The developer must prepare a contract with the beneficiary that includes at least the developer’s name, address and name of the project, its total area, public services, the common areas of the project between buildings and between units, the limits of the beneficiary’s right to use them, license number, escrow account number, net area of ​​the unit, and whether it includes land or buildings Include the land, the special requirements for the internal division of the unit, the finishing materials and the colors that match It is between the developer and the beneficiary and the right of the beneficiary to receive the plans of his unit as it is implemented on the ground, and that the amounts are deposited in the escrow account by any deposit method acceptable to the bank except for cash, deposit, drawings and administrative service costs, if any, provided that they do not exceed 5% of the contract amount and the penalty clause that the developer must pay If he is late in delivering the unit on the agreed delivery date, at least 7% annually of the unit price

It is calculated on a daily basis and the warranty period related to foundation works, concrete works, and insulation works for buildings, provided that it is not less than ten years from the date of delivery of the unit, and the warranty period related to installations such as mechanical, electrical and other works, provided that it is not less than one year from the date of delivery of the unit.

 The developer has the right to withdraw after the approval of the committee if the beneficiary is late in payment for a period of no less than 21 days for each payment.

The beneficiary has the right to withdraw after the approval of the committee in case the developer delays delivery for a period not exceeding 180 days from the agreed delivery date and a schedule for paying the payments according to the stages of work progress in the project, provided that the payments are proportional to the stages of completion, and the first payment does not exceed 20% of the value of the project. The unit, and the last payment due upon emptying or delivery shall not be less than 5% of the unit value.

 The consent of the beneficiary to include his information in the credit record and to provide evidence that the developer and the beneficiary are bound by the provisions of the controls and rules, and that in the event that what is stated in the provisions of the contract conflict with the controls, rules and contract approved by the committee, then it is considered what is in the interest of the beneficiary

Third: The area of ​​the real estate unit

The area of ​​the real estate unit, according to the engineering plan attached to the contract with the beneficiary, and which is registered in the projects registry, is the contracted area. The approval of the committee, then the unit price or rent is adjusted in proportion to its actual area on the basis of the meter price recorded in the register if the difference is more than 5% of the unit area

1. Association of Owners

The developer is committed to establishing a project-specific property union association in accordance with the system of ownership and sorting of real estate units. The developer and the beneficiaries must adhere to the system of ownership and sorting of real estate units, its implementing regulations and the provisions of the Landlord Association. The developer represents the Landlord Association until the land unit is handed over to the beneficiary, whereupon the Landlord Association becomes a constituent of the total beneficiaries, including the developer for undelivered units.

1. Amendment of the Rules

The Commission on the Sale or Lease of Real Estate Units on the Map shall be entitled to amend any provision of these Rules, provided that such amendments shall only apply after they have been published in the Official Gazette.

1. Project licensing

:: The committee shall consider applications from qualified developers who are registered with the Ministry’s Register of Real Estate Developers to obtain the necessary license within ten working days from the date of completion of the application. In the event of rejection of the license, the decision shall be substantiated.

The developer shall apply for a license for each project after payment of the financial return in accordance with the model designed for this purpose to the Commission, either paper or electronically, including the following :-

1- A copy of the trade register for individual establishments or enterprises.

2- A copy of the certificate of participation in the Chamber of Commerce or Industry.

3. A certificate that contains the integrity of the developer’s credit record from a company licensed for credit services, provided that the date of issuance of the certificate does not exceed three months from the date of submission of the application.

4- Copy of the electronic instrument of ownership of the project property.

5. Statutory authorizations from the competent authorities to approve the establishment of the project.

6- Architectural designs and engineering plans adopted by the competent authority

7- A statement of the number of project units, with a fixed code for each unit based on the process of sorting by the competent authority, which is fixed in all contracts, commitments and official documents with the competent authority

8. An economic feasibility study for the project, in accordance with the following provisions:

(a) Be in Arabic and approved by an office authorized to submit economic feasibility studies, and include the estimated financial, construction and marketing statements of the project, including the cost estimate, the contract price for the unit, the anticipated financial and administrative expenses, the project timeline, the delivery time of the units, the technical implementation phases of the project and the expected funding sources for the project.

(b) Without prejudice to the fixed clause (a), the Committee shall adopt a special model for projects based on the land of the Ministry of Housing.

9- The contract form with the beneficiary is attached to the Landlord Association System Project, which is based on the system of ownership and sorting of real estate units

10 – A copy of the agreement with the account custodian to open an account in the name of the project.

11- A copy of the developer subcontract, if any.

12- A copy of the contract of an intermediary or intermediaries, if any, containing the following provisions:-

(a) Failure by the marketer to receive cash payments, checks or transfers in its name;

1. b) the marketer does not enter into sales contracts in the name of .
2. c) Deposit of amounts, checks or transfers from buyers into the project’s escrow account.

(d) The unit sales contracts are to be signed on the contract of sale approved by the Commission for the project.

13- A copy of the contract of the Advisory Office shall include the functions specified in article 10 of these Rules

14- A copy of the Chartered Accountant’s Contract incorporates the functions specified in article 10 of the rules governing the escrow account.

15- Letter identifying the commissioners to sign the exchange document certified by the Chamber of Commerce

16- Letter of consent to marginalization of the land instrument certified by the Chamber of Commerce

17- Certificate of Qualification of Real Estate Developers Program

In the event that the developer does not own land for the project, the agreement between the developer and the owner or beneficial owner of the land shall be provided to the Commission. The agreement shall include the following :-

1- The owner’s agreement to marginalize the project land instrument in favor of the Commission

2- A statement of the responsibility and obligations of the owner and the developer, in solidarity, to the beneficiaries.

3- Enable developer to create real estate units .

4- The obligation of the owner to sign contracts with the beneficiaries and to empty the contracts in their names or to authorize the developer to do so.

5. The obligation of the owner not to create any conduct that would prejudice the rights of the beneficiaries, including the avoidance of the Convention with the developer, unless approved by the Committee.

6- The owner’s compliance with the rules and regulations

Role of the Commission :-

1- A decision to limit bank deposits or financial or in-kind guarantees provided by the developer upon request for a license to a percentage of the estimated value of the project to no more than 20 per cent. The decision shall be taken into account in its assessment to contribute to the preservation of the rights of the dealers and to raise the efficiency and stability of the real estate market.

2- After the reasons for the application submitted by the developer have been completed and the Committee has given its preliminary approval, the Ministry of Justice shall request the Ministry of Justice to marginalize the project land instrument by not disposing of it without the permission of the Ministry. After marginalization, the Committee shall issue the project license.

3- The Commission may, on the basis of a reasoned decision adopted by the Minister, issue its license without marginalization on the project land instrument, after ascertaining the financial possibilities of the developer and providing and documenting alternative guarantees in the project register. Alternative guarantees include, but are not limited to, providing in-kind guarantees to the Commission on the value of the project land or an irrevocable letter of guarantee valuing the project.

4- The Ministry of Justice requests the Ministry of Justice to lift marginalization after the completion of the project and the beginning of the sorting of real estate units.

5- After project authorization, the Commission shall issue a developer’s certificate, which shall include : License number, developer name, project name, license duration, project record number and project details

6- The Committee makes available a database of its licenses on its website.

1. Conditions to be met in the Advisory Office

1- Must be accredited by the Saudi Commission of Saudi Engineers

2. Have experience in construction and project management for a period of at least three years

3- To pass the Committee’s established consultant qualification program.

VII. Duties of the Advisory Office :-

The Advisory Office shall perform its work in supervising projects in accordance with the rules of the profession and the Commission’s directives regarding its supervision of projects. Its functions shall be as follows :-

1- Supervision and follow-up of the project’s work in accordance with engineering specifications and standards, as well as the requirements of the engineering system and designs, as stipulated in the contract with the beneficiary.

2- Record its signature with the account secretary or the account secretary, who delegates it by relying on his signature on the exchange document and matching it with the account secretary in the exchange.

3- Verification and certification of the exchange document

4. Submitting periodic quarterly technical reports to the Commission on the progress of the project or at any time as deemed necessary by the Commission

5- To submit a report in the event that the project is late for the time period specified for completion by each stage, explaining the reasons for the delay

6- Submission of a final report certified by the Chamber of Commerce as completed

VIII :- Cases of revocation of the developer’s license or suspension without prejudice to the rights of others :-

1- Proof of developer’s insolvency or declaration of bankruptcy .

2. The developer has not commenced construction work without reasonable excuse within the time period for which it has committed to commence the project despite having obtained the necessary approvals

3- If the developer ceases to complete the project and the Committee finds that it is not serious in its implementation

4- If the Commission considers that there are other reasons which impede the completion of the project reasons

5- If the developer commits violations of the provisions of the regulations or rules or fraudulent acts

1. Duties of the Committee in the event of revocation of the developer’s license or suspension :-

1- The Commission shall notify the developer before canceling or suspending the license in writing of the reasons for cancelation or suspension and the developer shall respond within 21 working days.

2. The Committee shall take measures to safeguard the rights of depositors after consulting with the Secretary of Account, the Advisory Office and the Chartered Accountant and, where necessary, communicating with the parties and stakeholders. The Committee shall take into account the statement made by the developer in response to the notification.
3. In suspending the license, the Committee may take the following measures:
4. a) Give the developer a grace period not exceeding six months.
5. b) instruct the account secretary to discontinue any amounts from the escrow accounts.
6. Upon the issuance of a decision revoking the license of the Minister, the Committee shall submit the following or some of the measures :-
7. a) Tasking the completion of the project to another developer
8. b) Return of depositors from the escrow account .
9. c) Project liquidation .

(d) To address the competent authorities to place all the developer’s funds in preventive detention when any fraud is discovered, concealed, or procrastinated in fulfilling the rights of depositors or beneficiaries, or if the violation continues uncorrected.

5. In all cases, upon revocation of the license or a suspension, the violation shall be recorded in the developer’s credit record with the credit service company.

Tenth :-Marketing, advertising and exhibition license :-

We start with real estate marketing :-

A management process that enables a real estate organization to create value for customers and build strong relationships with them to get value for money .

According to this definition, real estate marketing includes a system of works and tools, which are real estate products, the methods of their design, distribution, pricing, promotion and delivery to customers in ways that achieve their highest level of satisfaction.

General conditions for real estate marketing :-

1. Marketing, advertising or display in exhibitions inside or outside the Kingdom of Saudi Arabia of projects may only be carried out after the necessary authorization has been obtained from the Commission.
2. Marketing, advertising or display in exhibitions inside or outside the Kingdom of Saudi Arabia of projects outside the Kingdom shall not be permitted until the necessary authorization has been obtained from the Committee.

Conditions to be met in the real estate market for projects :-

1- Be approved by the competent authority and contract with the developer, with a copy of contract 2. Pass the qualification program approved by the Commission.

Conditions for obtaining a license to market real estate projects in the Kingdom :-

The real estate market shall apply for a license to market internal projects after payment of the financial return in accordance with the model prepared for this purpose to the Commission in paper or electronically, with the following attached :-

1- A copy of the trade register.

2. Copy of the certificate of membership of the Industrial Chamber of Commerce

3- A copy of the marketing contract between the real estate marketer and the developer if not attached to the project license

4. A copy of the title of the land.

5- A copy of the development contract between the real estate developer and the land owner in case the land does not belong to the developer if any

6- A copy of the statutory licenses issued by the competent authorities

7- Submission of all documents in Arabic

8- In the event that the marketer wishes to receive the amount of the reservation of real estate units from beneficiaries, an obligation shall be given to

1. a) must not receive more than 5% of the unit’s real estate value
2. b) Deposit in the Committee’s escrow account all retention monies received.

(j) The project start date shall be set at a maximum of 120 days from the date on which it is allowed to receive the booking amount. In the event that the project is not initiated, the Committee shall have the right to consider extending the project only once for a maximum period of 30 days or returning the amount to the project owners.

Conditions for obtaining a license to market the real estate market for the project abroad within the Kingdom

The real estate market shall apply for a license to market foreign projects inside the Kingdom after payment of the financial return in accordance with the model prepared for this purpose to the Commission in paper or electronically, with the following attached

1- A copy of the trade register

2. Copy of the certificate of membership of the Industrial Chamber of Commerce

3- A copy of the ownership documents of the project approved by the competent authorities of the project country

4- A copy of the marketing contract between the real estate market and the developer approved by the competent authorities of the two countries.

5- The adoption of the draft by the competent authorities in the project country is useful

6- A copy of the project license from the land of real estate approved by the competent authorities of the two countries.

7- An electronic file for all forms of advertising and publications (pro shoots) related to advertising .

8- A financial guarantee of the value of the project at a rate of 1%, up to a maximum of 1 million riyals, valid for a period of three months after the date of expiration of the license.

9- What benefits the Saudi ownership in the project country?

10 – A real estate market undertaking after the receipt of any sums or the signing of contracts of any kind within the Kingdom of Saudi Arabia approved by the competent authorities in the land.

11- The real estate market undertakes to submit the requirements of other relevant parties before approving the license as required.

12- Submission of all documents in Arabic

13- Undertakes to abide by the provisions of the regulations and rules and the decisions and instructions of the Committee

Conditions for obtaining a license to offer to the real estate market for projects in the Kingdom :-

The real estate market shall apply for a license to offer internal projects after payment of the financial return in accordance with the model prepared for this purpose to the Commission in paper or electronically with the following attached :-

1- Trade register image

2. Copy of the certificate of membership of the Industrial Chamber of Commerce

3- A copy of the contract for the rental or reservation of the exhibition

4- A copy of the marketing contract between the real estate marketer and the developer if not attached to the project license

5- The real estate marketer undertook not to receive any sums or sign contracts of any kind within Saudi Arabia approved by the Chamber of Commerce.

The conditions for obtaining a license to offer to the real estate market for the project outside the Kingdom :-

The real estate market shall apply for a license to market foreign projects inside the Kingdom after payment of the financial return in accordance with the model prepared for this purpose to the Commission in paper or electronically with the following attached :-

1- A copy of the exhibition lease contract .

2- A copy of the ownership documents of the project approved by the competent authorities of the project country

3- A copy of the project license approved by the competent authorities in the project country

4- What benefits the Saudis’ right to own property in the project country

5- Submission of all documents in Arabic.

In 2009, the kingdom banned the sale of real estate on the map due to developments in the planning stage.

1. Conditions to be met in advertising and exhibitions:-

1- Project license number and Commission logo

2- Developer trade name and developer address.

3- Name and address of the marketer .

4- Indication of the location, purpose, total area, number of units, area and specifications of the project

5- The amount of the contract for the unit, type and method of payment.

6- Number of endorsements of the Committee of the wording and date of the Declaration.

The role of the Committee in requesting marketing license, advertising and exhibitions:-

1- The Committee shall consider requesting a marketing license and an advertisement and an exhibition within ten working days from the date of completion of the request. In the event of rejection of the request, the decision to refuse must be substantiated.

2- Documents shall be submitted in Arabic and may be submitted in a foreign language provided that they are translated into Arabic by an authorized body.

3- After the marketing license, advertising and exhibitions, the Commission shall issue a certificate containing :-

License number, developer name, project number, and license period.

4- The Committee makes available on its website a database of its licenses.

XII. License requirements for the sale of real estate units on the map

1- Trade record

2. Certificate of Participation in the Chamber of Commerce

3- Contract between real estate market and developer

4. A copy of the title to the land
5. Development contract between developer and owner if any

6- Statutory licenses

7- Payment of license costs

8- Passing the Commission’s approved rehabilitation program

Delivered through developer service center

XIII :- Sampling rules :-

First: – Definition of the preview :-

The technical procedure, including disclosure, review and reporting, for the Committee as prescribed by the Rules.

1. Method of selection of the sampling company :-

The Commission may engage such companies as it deems appropriate through a statutory competition offered by the Commission for the purpose of carrying out the inspection work required for the project, in order to enable the Commission to perform any of its functions or competences under the rules and controls. The costs thereof shall be borne by the developer if irregularities arise by the developer.

III. The objective of inspection companies :-

1- The extent to which the developer is committed to tightening controls, rules and contracts with the beneficiaries.

2- The extent to which the project implementation work adheres to the approved plans and the planned implementation schedule

To that end, it has access to all project contracts, as well as all reports and correspondence submitted to the Commission by the project’s consulting office, legal accountant or account secretary

1. How to preview :-

The inspection in accordance with the assignment decision shall be engineering, accounting, documentary or a combination thereof. The sampling images shall include, without limitation, the following:-

1- Examine the project on the ground at any time and ascertain the state of work and the rates of completion achieved in the project.

2- Ensure that the project implementation work on the ground complies with the approved plans

3- Review of quantities completed in accordance with the inventory approved by the Advisory Office

4- Review of the statements and reports submitted by the developer and the periodic reports and statements issued by the Advisory Office, the Secretary of Account and the Legal Accountant

5- Financial audit of abstracts submitted by developer to the Advisory Office as well as exchange documents.

6- Comparison of what was actually implemented with what was planned based on the approved time program.

7- To carry out any detection, inspection or audit work requested by the Committee and to contract any third party for the purpose of carrying out any of the above, such as engineering laboratories

8- To inspect the development work of a project after the completion of the construction or at the time of delivery, in order to ascertain the state of the construction and the readiness to deliver as is the provisions of the completed plans and sales contracts.

Fifth : Preview company obligations :-

1. Performance of its work in the light of the mandate of the Commission

2- Submit its reports to the Committee and the Committee to provide copies of the inspection reports to any interested party

3- Any infringement or omission in its work or in the disclosure of the confidentiality of the information obtained during the performance of its functions shall be liable to the injured party, including the Committee, to consult the inspection company to compensate for any damage resulting therefrom.

4- To carry out any inspection work requested by the Committee, which shall not be entitled to contract with any other party for the performance of any of its functions except with the approval of the Committee.

Fourteenth:-

1- The Ministry’s officers or persons whom the Ministry deems appropriate to be hired by any Government agency, collectively or individually, shall be responsible for controlling and proving violations that occur in violation of the rules and regulations, whether as a result of a communication, a complaint or a inspection tour

2- The Committee shall submit to the Minister a request for referral to the Public Prosecutor of any of the following offenses :-

(a) continue to violate the provisions of the Regulations and Rules without correction;

1. b) providing false or misleading statements or information to the Ministry or the Committee.
2. c) knowingly aided, offered, sold or leased units in fictitious projects; or

(d) Who has embezzled, unjustly used or made payments made to him for the purpose of establishing real estate projects; e) who deliberately misrepresents the legal accountants as a result of his review of the financial status of the project or who deliberately conceals substantial facts in his report.

1. f) Certified by the consultants that the project documents are authenticated and they are known to be invalid or incomplete
2. Map sales features:-

When you buy a property as an investment, it’s important to look for two key features – high returns and capital growth is something that can be easily achieved when you buy on the map.

The benefits are :-

1- Purchase prices are much lower than average

One of the main advantages of purchasing a property on the map is the ability to secure purchases below market value often because developers want to show a certain level of sales before marketing the development or selling as many units as possible before the completion. Some developers also offer additional discounts to investors who buy multiple properties simultaneously as an additional incentive and negotiate directly with developers for the best discounts to their customers on the properties on the chart as we are able to sell large numbers of properties quickly and efficiently

2- Strong capital growth is possible

Those who buy real estate on the map mostly benefit from the growth in house prices.

If a property is purchased in 2015, but it wasn’t scheduled to be finished until 2017, when it’s finally built, they’ll see their property value increase every year. This can add enormous value to the property, especially if it’s actually bought at a discounted price from the start

3- Ability to resell at a profit before expiration

Because the value of your property will likely rise before it expires, investors can choose to sell their property for higher market value. Although this can be a good strategy for investors looking to make a quick profit, you’ll see a much greater benefit for capital growth through leasing real estate and also getting benefit from regular rental income as well as capital growth. .

4- Small deposits and interim payments

Depending on the developer and the property, some transactions on the map have the added advantage of interim payments, which can help spread the purchase cost and enable investors to buy real estate without significant sales deposit

XVI. A comprehensive sales and lease program has been established on the map :-

In order to ensure the implementation of what the government wishes and pursues, in order to comprehensively promote real estate, a program should follow up the plan and the goals step by step and be side by side in implementation on the ground. The government came up with a comprehensive program, which works on the mechanism of the implementation of the sale program on the map, by facilitating the obtaining of sale or lease licenses for any real estate units on the map (whether residential, industrial, investment, tourist, commercial, office, service, or other), whatever their purpose, method of development or construction.

This program also facilitates the process of creating projects for many companies ; The most important thing is that there is no longer a need to provide full capital to establish a project, or to resort to borrowing through various commercial banks, and of course to bear the burdens of the high interest rate. In addition to all of the above, the sales program on the map tries to reduce speculation among real estate developers, and also to raise the level of competition among them, which ultimately benefits the citizen and works to raise the level of supply ; And so prices go down.

How does the map sale program guarantee my rights?

The ministry did not leave the matter to be governed by the air, but rather put what guarantees the right of the buyer. The money will not be taken directly from the developer, but rather the matter will be placed under a control system that guarantees the right of the buyer and allows the developer to dispose of the money to fulfill the delivery. An escrow account will be opened in the name of the project and the buyer will pay the installments through a bank transfer or a check deposited in that account. The developer will withdraw from the payment under an ad hoc committee to oversee the project, according to what has been accomplished. The provided price will not exceed 5% of the value of the real estate unit.

Map Sales and Access Projects Adequate and Sales Method

Map sales projects are:-

Real estate on which work starts during or before, i.e., a residential or commercial unit can be purchased during construction and before the project is ready. This is one of the ways in which real estate is owned in various real estate markets

Mapping projects in the Kingdom

Mapping sales projects are available in many areas of the Kingdom and are always under the supervision of a comprehensive program from the Ministry of Housing, as it is the only entity that grants licenses to real estate developers for the purpose of selling real estate units on the map.

Therefore, you will find all the available sales projects on the map in different cities and regions of the Kingdom on the website

The Ministry of Housing’s website (Sales Projects on Map) will find on the page all available projects in different regions, and the information and status of each project if work has started or after.

map sales terms

There are no specific conditions for sale on the map for the buyer, as it can purchase from any of the available projects for sale if the real estate unit is suitable for it

Real Estate Developer Terms

The terms of the developer vary from project to project and from developer to developer. Most often, these conditions relate to payments, installments, dates of receipt of the real estate unit and the bank with which it operates. Of course this is for those who want to buy at their own expense without any housing support.

Terms of sale on the map for residential support beneficiaries

For the beneficiaries of housing support, the program (housing program) usually nominates the beneficiary of support for the selling product on the map. The conditions here are the same as the conditions for a housing benefit. The beneficiary nominated for the selling product on the map cannot choose the project he wants, but rather a resident determines the project for the beneficiary of the ministry’s projects. The beneficiary has the right to accept or reject the request. If he refuses, he is subsequently nominated for another product or project.

map sales method

The way you sell on a map is that the developer sells you a real estate unit before or under construction, as we said, so you can see the design chart only for the unit you’re buying from the blueprints that the real estate developer is offering. And buying a real estate unit that way is done in the following steps :

1- Familiarization with plans .

First of all, after you decide to buy a real estate unit, either a home or a business unit, you look at the blueprints that are available in the area or the city where you want to buy, the blueprints are always there

All the details of the projects and the units in each plan are found on a complete website on the page of the licensed projects there. You will find the details of the project, the units in it, its condition, whether it was started or not, and even the projects that were completed.

2- Project visit

After you review the plans, select the one that is suitable for you, and decide to buy in a plan, you must visit the project on the ground or the headquarters of the real estate developer that is working on the project. The design models for the units in the project will be inspected and detailed, so you can choose the appropriate unit and find out about the conditions of the real estate developer and the expected delivery dates, if you buy from this project.

And from there you can negotiate with the developer about the terms and the contract details that will be between you and him to finally decide whether you’re going to pursue this project and with this developer, or if the terms aren’t right for you, you can look at another project.

map sales method for residential beneficiaries

For those beneficiaries of residential support who have been nominated for the map sales product, once they have been nominated by the program for this product, the beneficiary will get his mobile number and a message that he will be nominated for the map selling product. The letter will contain details of the project for which we have been nominated, as well as a link for making an appointment with a real estate developer such as the project. The beneficiary will book the date and go on time to the real estate developer to inspect the design plans and identify the developer’s conditions and the payment mechanism for installments and payments.

Of course, the beneficiary can accept or reject the offer submitted by the real estate developer. If he refuses, he will be nominated again later for another project.

land unit receipt

When you buy a real estate unit on the map, the date of receipt of the unit will be determined in the contract to be signed between the buyer and the seller (the real estate developer). A comprehensive program obliges the real estate developers to require the customer to obtain his real estate unit within three years at most from the date of signing the contract, whether the buyer is from his own account or the beneficiaries of housing support.

payment

Payment of payments shall be in accordance with the contract concluded and the agreements reached between the developer and the buyer. The regulations and laws specified by the Agreement shall guarantee the rights of both parties and the commitment of each party to the terms of the contract.

Payments to residential beneficiaries

In the case of the beneficiaries of housing support, according to the current laws, the beneficiary shall pay five percent of the value of the real estate unit in monthly installments, distributed over the period before receipt, whether three years or not, at the beginning of the three-year period before the receipt of the house.

Later, after receiving the real estate unit, the remainder of the unit’s value is paid in monthly installments over the fixed period agreed upon between the beneficiary and the real estate developer in the contract.

map sales contract model

The WFI website provides a sales contract model on the map, which is only indicative, i.e. not

necessarily be bound but only to the parties to the contract

. Quality of construction in map sales projects

As for the quality of construction, it is supervised by the Project Committee in a comprehensive program, which organizes periodic visits to projects to follow up on implementation and ensure the quality of construction work and compliance with the specified specifications and requirements.

In addition, the buyer may add the items it wants for the contract during the purchase of the unit on the map, so as to ensure that the real estate unit receives the specifications and requirements that ensure the quality and the materials used in the construction work.

XVII. Risks of unit asymmetry

First danger:-

What’s hovering around buying on a map is that the purchased unit or drug doesn’t match what’s seen on the map or on the models. The consumer has paid the deposit or the down payment in any amount, as well as a number of installments, which the seller may be keen to make on the map to exceed half the number of premiums, and thus the seller has actually obtained a value exceeding half the value of the sale. Here, surprises may occur because consumers think that this unit or this house is not the picture that they see on a map or an object. There is then a great controversy as a result of misconceptions or beliefs about the true form of the object between the seller and the buyer.

Second risk:-

purchasing on a map from one country to another

One of the most important reasons for buying on the map is the distance of the consumer’s area from the project area. Units are often sold in Dubai, Cairo or Bahrain, for example, from the consumer’s residence in Riyadh .. So buying here on the map, because of necessity.. Because of the long distance, it is not recommended to buy at all, unless there is confidence in the vendor and in the models he displays

Third Danger

risk of non-compliance

Sellers often consume liquidity and installments from buyers, but some real estate developers use their liquidity in a form that is common among many and varied projects and does not link the liquidity of a particular project to its project. But he tries to use the existing liquidity to finish old projects that are stalled, and that is where the seller gets in the trouble of delaying all his projects.. Buyers are surprised by the delay in receiving their units beyond the agreed timelines. Although the seller received its installments, it does not meet the delivery dates of the units in such a way that buyers are increasingly promised from time to time

Danger number four :-.

map sales codification

Although the kingdom was late, or perhaps even initially rejected this system, it began to spread and impose itself until the state began to regulate the relationship between the seller on the map and the buyer on the model. The Regulation attempted to give assurances to the buyer that the installments paid and the packaging would not be allowed to be used by the seller at all and in any way to prevent problems from occurring, especially since most sellers are associated with many and varied projects and some are often stalled.

The regulation sought to codify the opening of an escrow account for each project, which would be for project cash flows and project disbursement purposes only, and to which all payments from buyers would be deposited for each sales unit. The Regulation has made several requirements for the acceptance of unit sales licenses on the map, so that not everything that is required to be licensed is actually licensed. This is clear evidence that there are submissions that do not meet the requirements, with 17 applications for a license and approval of a license for only one project, a clear indication that these projects are risky and do not meet the required safeguards.

The regulations and adequate requirements and guarantees are the guarantees for disengagement between the seller and the buyer on the map. The Island Research Unit looks forward to Wafi obtaining the requirements and specifications of the real estate units and monitoring their eventual delivery in accordance with these requirements so that we do not reach new stalled projects.