The Real Estate General Authority (REGA) has presented the draft implementing regulations for the Off-Plan Real Estate Projects Sale and Lease Law, along with the draft controls for escrow accounts and the draft controls for qualifying activity practitioners, through the “Istitlaa” platform. This initiative aims to enable the public, government entities, and the private sector to express their views and provide feedback prior to approval, in accordance with Article (28) of the Off-Plan Real Estate Projects Sale and Lease Law issued by Cabinet Decision No. (196) dated 04/03/1445 Hijri.
REGA clarified that the draft implementing regulations for the law comprise (40) articles, while the escrow account controls consist of (8) articles, and the qualification controls for activity practitioners include (6) articles. These drafts aim to regulate the off-plan sale and lease activity, enhance transparency and disclosure, and ensure the protection of the rights of all parties involved in contractual relationships. They are also intended to govern supervision and compliance operations, automate all procedures for the issuance of relevant licenses, and oversee the entire construction process until project completion. This falls within the broader framework of REGA’s supervision of the real estate legislative system and aligns with the objectives of the comprehensive real estate sector strategy.
REGA indicated that the draft regulations and controls provide detailed provisions regarding the mechanisms for qualifying and classifying activity practitioners, the requirements for opening an escrow account in the project’s name, the licensing and implementation procedures for off-plan sale or lease projects, and the provisions addressing project delays and defaults. The drafts also outline the framework for supervision, inspection, and enforcement. REGA invited all stakeholders—including the public, government agencies, and the private sector—to review the draft implementing regulations on the Istitlaa platform via the following link:
https://istitlaa.ncc.gov.sa/ar/Municipality/rega/RealEstate
REGA also encouraged the review of the draft controls for qualifying practitioners of off-plan sale or lease activities at:
https://istitlaa.ncc.gov.sa/ar/Municipality/rega/Controls
In addition, the draft controls regulating escrow accounts for off-plan real estate sale and lease projects can be reviewed at: https://istitlaa.ncc.gov.sa/ar/Municipality/rega/escrow
REGA urged all parties to submit their observations and suggestions through the platform.
REGA affirmed its commitment to ensuring that the Off-Plan Real Estate Projects Sale and Lease Law, along with its implementing regulations, escrow account controls, and practitioner qualification controls, contributes to reducing violations within the real estate development sector under the off-plan system. These regulations are also expected to increase the supply of commercial, residential, industrial, tourism, and other real estate products, expand financing channels for real estate developers, and open new investment opportunities. Ultimately, this initiative aims to enhance investor confidence in the Kingdom’s real estate sector through a well-defined legal framework that protects the rights of all parties.