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The Real Estate General Authority (REGA) confirmed that the “Off-Plan Real Estate Projects Sale and Lease Law” aims to regulate the sale and lease of off-plan real estate projects and to enhance transparency and disclosure, ensuring the protection of all parties involved in the contractual relationship. The law seeks to reduce violations in the off-plan real estate development sector and, as part of the broader real estate legislative framework, contributes to strengthening investor confidence in the Kingdom’s real estate market. REGA added that the law will take effect on 25 Ramadan 1445 Hijri, corresponding to 4 April 2024, and that the implementing regulations will be published soon.

 

REGA explained that the law—recently published in Umm Al-Qura newspaper—comprises thirty articles, covering definitions and general provisions, mandatory licensing and registration requirements, the jurisdiction of the competent authority, and conditions for advertising or marketing any off-plan real estate development project. It also addresses conditions for registering natural persons in the developers’ registry, as well as mechanisms and controls related to guarantee accounts and disbursements, administrative and marketing expenses, surplus over total actual cost, construction guarantees, financial statements, the process for subdividing units, and disposal procedures. The law further outlines the roles and responsibilities of entities in charge of classifying and monitoring violations, the committees responsible for adjudicating such violations, individuals required to report breaches, mechanisms for referring cases to competent authorities, and procedures for disclosure, oversight, and addressing distressed projects.

 

REGA noted that the law facilitates the qualification and registration of real estate developers to legally engage in off-plan sale and lease activities. It also allows for supervision and inspection of the entire sector, including the monitoring of developers’ financial solvency in relation to project implementation and their continued compliance with licensing obligations. Additionally, REGA is tasked with overseeing the performance of consultants, including engineers, certified public accountants, and account trustees, ensuring that they fulfill their contractual obligations. To this end, REGA appoints technical inspectors—in engineering, accounting, and other specialties—to investigate any suspected violations of the law and its implementing regulations. REGA has made the full text of the law available for public review on its official website at:  

https://rega.gov.sa/media/l0thhdou/نظام-بيع-وتا-جير-مشروعات-على-الخارطة.pdf

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Last modified date: 2025/07/10 8:17 AM

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