The following words and phrases are defined as follows:
Committee: The committee for the sale or lease of real estate units on the map.
Regulations: The 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 AH.
Rules: The 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 works or land development aimed at selling or leasing real estate units on the map.
Real Estate Unit: The portion separated from the project.
Developer: The person licensed to sell, lease, purchase, and develop real estate, as the developer of the project.
Map: A detailed engineering plan for the real estate units subject to sale or lease, approved by the competent authority.
Visiting Consultant: The engineering office appointed by the developer to conduct field visits to receive the executed works after verifying their quality.
Building Area: The total building areas mentioned in the regulatory license issued by the competent authority (building permit, or construction permit, or its equivalent), excluding areas designated for services.
Small Projects: A project whose building area does not exceed (5000 m2).
Medium Projects: A project whose building area exceeds (5000 m2) and does not exceed (10,000 m2).

The purpose of these rules is to:
1. Establish the minimum requirements and conditions necessary for small or medium-sized projects to obtain a license to practice the activity.
2. Encourage real estate development companies to develop provinces and urban area centers.
3. Stimulate small and medium-sized enterprises to invest in real estate development.
4. Reduce the costs of real estate development projects for off-plan sales activities.

The developer submits a license application for the small or medium project, according to the form prepared for this purpose to the committee either in paper or electronically, accompanied by the following:

• 1. A copy of the commercial register for individual institutions or companies.

• 2. A certificate that includes the soundness of the developer's credit record from a licensed credit services company, provided that the date of issuance of the certificate does not exceed three months from the date of submitting the application.

• 3. A copy of the electronic deed of ownership of the project real estate, and a letter of approval for the annotation on the land deed of the project, certified by the Chamber of Commerce.

• 4. The legal licenses and the approved engineering and architectural designs from the relevant authorities approving the establishment of the project.

• 5. A draft contract with the beneficiary, accompanied by:

  • أ. A draft system for the owners' association according to the system of ownership of real estate units and their subdivision.

  • ب. A payment schedule.

  • ت. A statement of the prices of the project units, their number, and their areas.

• 6. Submission of a guarantee management (promissory note) in the amount of (one million riyals) for small projects, and an amount of (three million riyals) for medium projects.

If the developer does not own the land of the project, it is required to provide the Committee with the agreement concluded between the developer and the landowner or the owner of its usufruct, provided that the agreement includes the following:
1. The owner's approval to marginalize the title deed of the project land in favor of the Committee.
2. A statement of the responsibilities of the developer and the owner and their obligations - jointly - towards the beneficiaries.
3. Enabling the developer to establish the real estate units.
4. The owner's commitment to sign contracts with the beneficiaries and transfer the title deeds in their names, or to authorize the developer to do so.
5. The owner's commitment not to create any actions that may harm the rights of the beneficiaries, including terminating the agreement with the developer, except with the Committee's approval.
6. The owner's commitment to the provisions of the regulations and rules.

• The developer is required to do the following:

• 1. Allocate a bank account specifically for the project and provide the Committee with the account number.

• 2. Collect all payments from buyers for the project in the designated account.

• 3. Provide 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 at a minimum the following:

  • A. Buyer information and contact details.

  • B. The approved report template prepared by the engineering consultant, attached with the completion reports for all completed phases.

  • C. The payments that have been deposited by the buyers according to the payment schedule.

  • D. The bank statement.

• 6. Preserve all financial documents related to the project for deposit and expenditure operations for a period of no less than ten years.

The developer may not obtain more than one license if they hold a license for a small or medium project, except after the completion of the licensed project.

These rules do not violate the regulations and other rules issued by the Committee, and they should be read and interpreted in conjunction with them.

The committee has the authority to amend any provision of these rules, and the amendments shall not take effect until they are published.

These rules shall come into effect from the date of their publication.