The following words and phrases are defined as follows:

Committee: Committee for the sale or lease of real estate units on the map.

Regulations: Regulations related to the sale or lease of real estate units on the map, issued by Council of Ministers Resolution No. (536) dated 4/12/1437.

Rules: Rules issued by the Committee to organize the work of selling or leasing real estate units on the map.

Activity: The sale or lease of any real estate units on the map, regardless of their purpose, whether residential, commercial, investment, office, service, industrial, tourism, or others, and regardless of the method of their development or construction, in which the developer receives amounts from beneficiaries or project financiers.

Project: The construction of buildings or development of land for the purpose of selling or leasing real estate units on the map.

Real Estate Unit: The portion separated from the project, including parts of the undeveloped land if the project is for establishing infrastructure.

Developer: The person licensed to sell, lease, purchase, and develop real estate, as the main developer of the project.

Sub-developer: The person licensed to sell, lease, purchase, and develop real estate, under an agreement with the main developer.

Beneficiary: The buyer or tenant of the real estate unit.

Map: A detailed engineering plan of the real estate units subject to sale or lease, approved by the competent authority.

Certified Accountant: The person licensed to perform accounting and legal auditing services.

Consulting Office: The licensed engineering supervision office authorized to provide engineering consulting services.

Guarantee Account: The bank account specific to the project in which the amounts paid by beneficiaries and project financiers are deposited.

Account Custodian: The banking institution licensed by the competent authority.

Disbursement Document: A document designed by the developer in coordination with the account custodian, under which disbursement from the guarantee account for the establishment of the project is made.

1- These rules aim to regulate the guarantee account in projects for the sale or lease of real estate units off-plan.

2- These rules do not violate the regulations related to the sale or lease of real estate units off-plan.

1- A guarantee account shall be established in the name of each project through a written agreement between the developer - or the project executor - and the account custodian, and this agreement shall regulate the rights and obligations arising from the opening of the account in a manner that does not conflict with the provisions of the regulations and banking account rules and these rules.

2- The account shall have a unified number that serves as a reference for deposits, and the account shall be used to organize the financial matters of the project, and to deposit the amounts provided by the developer, depositors, and financiers.

3- If the project consists of several projects that conclude at different stages, the developer must open a guarantee account for each project separately.

4- The requirement to open a guarantee account may be exempted for certain projects based on a reasoned decision from the committee.

The escrow account agreement must include the following terms and conditions:

• 1- The obligations of the account trustee as stated in Article (6).

• 2- The developer's obligation not to receive any amounts from the depositors, and that the amounts must be deposited directly by them into the escrow account.

• 3- The criteria that must be met before any amounts are paid to the developer from the escrow account, including the amounts due in accordance with the provisions of the regulations and rules.

• 4- The conditions for managing the project escrow account by the account trustee, and his powers to disburse from the escrow account to the developer.

• 5- The requirement to link disbursement payments from the escrow account to the actual achievement percentages of the project works, which are calculated according to the approved schedule.

The developer shall not rely entirely on the funds of the beneficiaries for the establishment of the project, and the committee has the authority to issue a decision to determine the percentage required to be completed of the project; before disbursing from the funds of the beneficiaries deposited in the guarantee account.

The account custodian is obligated to comply with the following:

• 1- The guarantee account shall not be activated until the license for the project is issued.

• 2- The account custodian shall not seize the project's accounts for his own benefit.

• 3- He shall not delegate his duties in the agreement between him and the developer to a third party during the project's implementation for any reason.

• 4- He shall provide the committee with quarterly statements for the guarantee account, or at any time the committee deems necessary.

• 5- The guarantee account shall not be closed by agreement with the developer except after the committee's approval.

1- The Committee shall notify the account custodian upon committing any violation of the provisions and rules or the terms and conditions of the escrow account agreement, granting him a grace period to rectify it. The account custodian must correct the violation within the specified time frame.

2- The Committee has the right to request the replacement of the account custodian due to his violations or failure to rectify them, and it may refuse to approve him as the custodian for any subsequent escrow account project.