The sale of any real estate units off-plan - regardless of their purpose - whether residential, commercial, office, service, industrial, tourism, or others, is prohibited. This includes advertising them in local or foreign media, marketing them within the Kingdom, or showcasing them in exhibitions; except after obtaining approval from the committee specified in item (Second) of these regulations.

A committee shall be formed in the Ministry of Commerce and Industry consisting of representatives from: the Ministry of Municipal and Rural Affairs, the Saudi Arabian Monetary Authority, and the General Panel for Housing. Its duties shall include the following:

• A- Reviewing the claims submitted for engaging in real estate development activities, with the license to be granted within a maximum period of ten days from the date of completion of the claim.

• B- Establishing the technical and financial qualification criteria for real estate developers.

• C- Setting the conditions and specifications for disbursement from the guarantee account for the project and supervising it, determining the responsibility of the engineering supervision office for the project, the legal accountant, and the specialized inspection and quantity surveying companies, and their role in disbursing payments related to project expenses.

• D- Establishing specific conditions for consumer rights and operational conditions in the common benefits of the real estate development project.

• E- Creating a register that includes the arrangement and documentation of the sale of units on the map in any real estate project.

• F- Establishing specific conditions for the disclosure of sold real estate and the mechanism for protecting consumers from developers or intermediaries selling the same property to multiple buyers.

• G- Specifying the necessary documents for registration in the register of real estate developers, which shall include the following:

  • 1- The commercial register for individual institutions or companies.

  • 2- A membership certificate from the Chamber of Commerce and Industry.

  • 3- A certificate of credit record safety from a licensed credit services company.

  • 4- A title deed for the land intended for development.

  • 5- A copy of the contract concluded between the main developer and the sub-developer (if any).

  • 6- The architectural designs and engineering plans approved by the relevant authorities.

  • 7- A model sales contract between the developer and the buyer, with delivery dates specified by the day.

  • 8- A copy of the contract concluded between the developer and the real estate marketer - if any -.

A separate account shall be opened for each project - after obtaining the approval of the aforementioned Committee - called the "Guarantee Account" in one of the licensed banks in the Kingdom. This account is designated to receive the payments made by buyers on the map or the financiers of these projects. The agreement concluded for this purpose between the bank and the real estate developer shall specify the terms of managing this account, the rights and obligations of the contracting parties, in accordance with what the Committee decides in this regard.

The Ministry of Commerce and Industry shall do the following:

• 1- Provide a number of employees for the secretariat of this Committee.

• 2- Open a register in the Ministry called (Register of Real Estate Developers) in which the names of qualified real estate developers shall be recorded, after the Committee's approval for their registration and granting them a certificate to that effect.

Anyone engaged in the sale of real estate units off-plan in the Kingdom prior to the issuance of these regulations must apply to the Committee to adjust their status in accordance with these regulations. The Committee shall consider each case individually and the progress made in the real estate development project, ensuring that the rights of buyers and the real estate developer are not harmed, within a period of sixty days from the date of issuance of these regulations. An extension may be granted for an additional period if there are objective reasons, subject to the approval of the Minister of Commerce and Industry.

A- If anyone engaged in Real Estate development activities violates these regulations, the Committee shall issue a decision to temporarily suspend their activities while considering the rights of the buyers, and provide the Credit Services Company with the details of the violation, and report to the Minister of Commerce and Industry regarding the actions to be taken against them in accordance with the applicable laws and regulations.

B- In the event that the Committee discovers any fraudulent activities or concealment thereof, or delays in fulfilling the rights of buyers in Real Estate development activities, it shall refer the violators to the Public Prosecution and Investigation Authority, and those found guilty by the investigation shall be referred to the Criminal Court to consider the application of the penalty against them.

1- These regulations shall be published in the official gazette and shall take effect from the date of publication, provided that the Committee coordinates with the real estate committees in the Saudi Chambers of Commerce and Industry to announce them in various media outlets.

2- These regulations shall remain in effect until the issuance of the draft system (Real Estate Development Guarantee Account) and the implementation thereof.