REGA Presents Off-Plan Real Estate Projects Sale and Lease Law Violations Table for Public Consultation
The Real Estate General Authority (REGA) has presented the proposed violations table for the Off-Plan Real Estate Projects Sale and Lease Law on the Istitlaa platform. The goal is to allow the public, government entities, and the private sector to review and provide feedback and observations before its official approval. The consultation will remain open until 23 August 2024.
REGA explained that the violations table outlines penalties for (26) specific violations, including financial fines of up to (500,000) Saudi riyals, deletion of the developer's record from the developers' registry, cancellation of approvals, and temporary bans from engaging in the activity. The table details the procedures for addressing violations such as: delays in initiating project implementation beyond the scheduled date; developer default or bankruptcy; entering into agreements that differ from REGA’s standard contract; providing misleading information; receiving payments from buyers without prior approval; obstructing or disrupting the work of contractual parties; or failing to complete project-related procedures or fulfill buyer rights.
REGA emphasized that this violations table is intended to regulate the off-plan sale and lease sector, enhance transparency and disclosure, and ensure the protection of all parties involved in contractual relationships. The table also supports governance and compliance by outlining all licensing requirements and procedures related to the sale and lease of off-plan units, including the tracking of project construction progress through to completion. REGA invited all stakeholders—including members of the public, government bodies, and private sector entities—to review the violations table and submit their feedback through the Istitlaa platform at the following link:
https://istitlaa.ncc.gov.sa/ar/Municipality/rega/ClassificationTable/Pages/default.aspx
REGA also reiterated its commitment to ensuring that the violations table contributes to minimizing breaches in the off-plan real estate development sector. It supports REGA’s broader objective of regulating market practices, ensuring fulfillment of obligations, safeguarding the rights of all parties, and completing real estate projects within the planned timeframes based on each project’s feasibility study. Ultimately, this initiative aims to enhance transparency, reliability, and clarity in the Saudi real estate market.
