The Real Estate General Authority (REGA) has launched the draft law on real estate unit subdivision, ownership, and common area management through the "Istitlaa" platform, aiming to gather feedback from government entities, the private sector, and the public on the proposed legislation.
REGA explained that the draft law seeks to regulate transactions in the real estate market by ensuring transparency and clarity in the rights and obligations related to common areas. It also aims to safeguard beneficiaries' rights by defining shared areas and facilities, enhancing the efficiency and accuracy of subdivision processes. This initiative forms part of the broader real estate legislative framework aligned with the objectives of the comprehensive real estate sector strategy.
REGA further noted that the draft law outlines the entire process of subdivision and ownership of real estate units—starting with definitions, provisions on ownership, and the rights and obligations of unit owners. It also covers the components of real estate units, documentation and registration procedures, compensation mechanisms for expropriating common ownership, and the regulation of owners’ associations. The draft introduces a new chapter specifically dedicated to the management of common facilities, including neighborhood associations, real estate complex associations, marine islands, and similar entities, as well as penalties for violations of the law’s provisions. REGA has invited all interested parties—whether from the public, government entities, or the private sector—to review the draft law via the Istitlaa platform at the following link: https://istitlaa.ncc.gov.sa/ar/Municipality/rega/Subdivision, and to provide comments and suggestions.
REGA also reaffirmed its commitment to ensuring that, once enacted, the law will contribute to enhancing market balance and increasing real estate supply by streamlining the development and management of multi-unit projects with clarity and transparency. The law also aims to strengthen the efficiency of the real estate sector, facilitate transactions, reduce disputes, and ultimately build trust among market participants and investors.
