Procedural Manual for Sale and Lease of Off-Plan Real Estate Projects

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Publish Date

1446/11/04

Release Date

1446/10/26

Status of legislation

Active

Type of legislation

Guidelines

Legislation Type

Board Resolution of the Authority

Legislation Documents
  • Procedural Manual For Sale And Lease Of Off Plan Real Estate Projects
    • 1. Document of Procedure for Registering Legal Person in Developer Registry.

     

    Process Description: Handling and registering natural person’s request in Developer Registry.

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application Form.

    2.      Statement of the implemented projects and their value, in addition to attaching proof of such implementation([1]).

    3.      Financial statements audited by a chartered accountant, or a financial statement for enterprise established before less than one year.([2])

    4.      A valid commercial registration that includes engaging in real estate development activity.

    5.      A certificate issued within the last three months confirming the good standing of credit record.

    6.      The methodology followed for one of the implemented projects([3]).

    7.      Enterprise’s approved organizational structure.

    8.      Work Organization Regulation approved by the Ministry of Human Resources and Social Development.

    9.      Approved Occupational Safety and Health Management Regulation or ISO 45001 Certificate.

    10.  Saudization Certificate issued by the competent authority.

    11.  General Organization for Social Insurance “GOSI” Certificates and list of on-the-job subscribers.

    12.  Completing REGA Approved Qualification Program([4]).

    13.  Zakat, Tax and Customs Authority (ZATCA) Certificate.

    14.  A statement of engineers accredited by Saudi Council of Engineers (SCE) who are employed by the enterprise([5]).

    15.    Enterprise’s approved social responsibility programs([6]).

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Assessing requisites, ensuring availability of all mandatory requisites, and ensuring that the applicant has obtained a minimum of thirty-five (35) points according to the table stipulated in Article (5.1) of the Regulations.([7])

     

    Key Outputs

    1.      Certificate of Registration in Developer Registry.

    2.      Registering Developer in Developer Registry.

    3.      Updating Developer Registry.

     

     

    Developer Role 

    1.      Submitting application form.

    2.      Attaching required documents.

    2.      Document of Procedure for Registering Natural Person in Developer Registry.

    Process Description: Handling Natural Person’s Request for Registration in Developer Registry.

    Procedure:

                                                                                                                                                                   

                                                                                                                                                      

                                                             Parties to Relationship

    1.      Developer 

    2.      REGA

    Requisites

    1.      Application Form

    2.      Completing REGA Approved Qualification Program.

    3.      Statement of the implemented projects and their value, in addition to attaching proof of such implementation.

    4.      A certificate issued within the last two months confirming the good standing of credit record.

    5.      Certificate of VAT Registration for Individuals.

     

     

    Developer Role 

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Assessing requisites, ensuring availability of all mandatory requisites, and ensuring that the applicant has obtained a minimum of thirty-five (35) points according to the table stipulated in Article (5.2) of the Regulations.([8])

     

    Key Outputs

    1.      Certificate of Registration in Developer Registry.

    2.      Registering Developer in Developer Registry.

    3.      Updating Developer Registry.

     

    3.      Document of Procedure for Submitting a Request for Increasing Developer Evaluation Score.

    Process Description: Handling request submitted by registered Developer to increase evaluation score in Developer Registry.

    Procedure:

    Parties to Relationship

    1.      Developer 

    2.      REGA

    Requisites

    1.      Application Form

    2.      Proof of capability change in accordance with evaluation criteria stipulated in Article (5) of the Regulations([9]).

     

     

    Developer Role 

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.       Ensuring that there are no observations concerning the Developer or its projects.

    3.      Ensuring that there are not any outstanding financial claims against the Developer.

    4.      Ensuring that there are not any projects delayed or stalled by the Developer.

     

    Key Outputs

    1.      Updating Certificate of Registration in Developer Registry.

    2.      Updating Developer Registry.

     

     

     

    4.      Document of Procedure for Updating Developer Evaluation Score.

    Process Description: Handling update of Developer evaluation score.

    Procedure:

    Parties to Relationship

    1.      REGA

    Requisites

    1.      Proof of capability change in accordance with evaluation criteria([10]).

     

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Updating Certificate of Registration in Developer Registry.

    2.      Notifying Developer.

    3.      Updating Developer Registry.

     

     

     

     

     

    5.      Document of Procedure for Suspending Registration of Developer Registered in Developer Registry.

    Process Description: Handling procedure for suspending Developer registration if the minimum evaluation criteria is no longer met.

    Procedure:

    Parties to Relationship

    1.       REGA

    Requisites

    1.      Proof that the Developer is no longer meeting minimum qualification score.

     

     

    REGA Role

    1.      Ensuring that the requisites are met.

    2.      Notifying Developer of suspension and corrective period.

     

    Key Outputs

    1.      Suspending Developer registration in Developer Registry.

    2.      Updating Developer Registry.

    3.      Notifying Developer of suspension and being granted (three-month) period for correction.

     

     

     

     

     

     

     

    6.      Document of Procedure for Canceling Registration of Developer from Developer Registry.

    Process Description: Handling procedure for canceling Developer registration from Developer Registry after expiry of corrective period.

    Procedure:

     

    Parties to Relationship

    1.       REGA

    Requisites

    1.      Occurrence of any of the following cases: 

    a.       If the Developer becomes bankrupt.

    b.      If a decision is issued to penalize the Developer for committing a serious violation of provisions of the Law or the Regulations and bylaws governing the practice of real estate development activity.

    c.       If REGA deems it necessary to cancel registration of the Developer from Developer Registry in the event the Developer, without an acceptable excuse, fails to commence the construction works of the licensed real estate project within six (6) months as of license issuance date.

    d.      If REGA deems it necessary to cancel registration of the Developer from Developer Registry due to repeated delay or failure in the completion of several real estate projects, or if it is proven that the Developer has compromised the quality of project implementation.

    e.       If the corrective period granted to the Developer after suspension of registration expires and the Developer fails to rectify the status.

     

     

    REGA Role

    1.      Ensuring that there is evidence confirming the occurrence of one of the cases stated in the requisites.

    2.      Canceling Developer registration.

     

    Key Outputs

    1.      Canceling registration in Real Estate Developer Registry.

    2.      Updating Developer Registry.

     

     

     

    7.      Document of Procedure for Accreditation of Consulting Office.

    Process Description: Handling request for accreditation of consulting office with REGA.

    Procedure:                                           

                                                                                                                    

    Parties to Relationship

    1.      Consulting Office

    2.      REGA

    Requisites

    1.      Application Form

    2.      Valid commercial registration.

    3.      SCE license.

    4.      Certificate of City Service Providers Classification “Balady”.([11])

    5.      Certificate of completing REGA Approved Qualification Program.([12])

    6.      General Organization for Social Insurance “GOSI” Certificates and list of on-the-job subscribers.

     

     

    Consulting Office Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Issuing Certificate of Consulting Office Accreditation.

    2.      Registering Consulting Office in Accreditation Registry.

    3.      Updating Accreditation Registry.

     

     

     

     

     

     

    8.      Document of Procedure for Canceling Accreditation of Consulting Office.

    Process Description: Handling procedure for canceling Consulting Office accreditation with REGA.

    Procedure:

     

                                                                                                                           

    Parties to Relationship

    1.       REGA

    Requisites

    1.      Evidence confirming that one or all Consulting Office accreditation qualifications is/are no longer met([13]), or a decision is issued by the Committee for Considering Violations of Provisions of the Law to cancel Consulting Office accreditation.

     

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Canceling Certificate of Consulting Office Accreditation.

    2.      Updating Accreditation Registry.

    3.      Notifying Consulting Office of canceling accreditation.

     

     

     

     

    9.      Document of Procedure for Requesting Change of Consulting Office.

    Process Description: Handling Developer’s request for change of Consulting Office appointed to oversee the project.

    Procedure:

                                                                                 

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.        Application form elaborating reasons for requesting change.

    2.        Agreement of alternative Consulting Office, including takeover of previous works.

    3.         Project Status Report.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving Request for Change of Consulting Office assigned to oversee the project.

    2.      Updating Project Register.

     

     

     

     

    10. Document of Procedure for Accreditation of Chartered Accountant.

    Process Description: Handling Chartered Accountant’s Request for Accreditation by REGA.

    Procedure:

     

                                                                                                                                                                                          

    Parties to Relationship

    1.      Chartered Accountant

    2.      REGA

    Requisites

    1.        Application Form.

    2.        Valid commercial registration.

    3.        General Organization for Social Insurance “GOSI” Certificates and list of on-the-job subscribers.

    4.        Saudi Organization for Chartered and Professional Accountants (SOCPA) License.

    5.        Certificate of completing REGA Approved Qualification Program.([14])

     

     

    Chartered Accountant Role

    1.               Submitting application form.

    2.               Attaching required documents.

     

    REGA Role

    1.               Ensuring that requisites are met.

     

    Key Outputs

    1.               Issuing Certificate of Chartered Accountant Accreditation.

    2.               Registering Chartered Accountant in Accreditation Registry.

    3.               Updating Accreditation Registry.

     

     

     

     

     

    11. Document of Procedure for Canceling Accreditation of Chartered Accountant.

    Process Description: Handling procedure for canceling accreditation of Chartered Accountant if the minimum qualification criteria is no longer met.

    Procedure:

    Parties to Relationship

    1.       REGA

    Requisites

    1.      Evidence confirming that one or all Office qualifications is/are no longer met([15]), or a decision is issued by the Committee for Considering Violations of Provisions of the Law to cancel Chartered Accountant accreditation.

     

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Canceling Certificate of Chartered Accountant Accreditation.

    2.      Updating Accreditation Registry.

    3.      Notifying Chartered Accountant of canceling accreditation.

     

     

     

     

    12. Document of Procedure for Requesting Change of Chartered Accountant.

    Process Description: Handling Request for Change of Chartered Accountant assigned to oversee the project.

    Procedure:                            

     

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.        Application form elaborating reasons for requesting change.

    2.        Agreement of alternative Chartered Accountant, including takeover of previous works.

    3.        Former Chartered Accountant’s Project Status Report. 

    4.        Clearance Statement from the former Chartered Accountant.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.               Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving request for change of Chartered Accountant Office assigned to oversee the project.

    2.      Updating Project Register.

     

     

     

    13. Document of Procedure for Requesting Change of Bank.

    Process Description: Handling Developer’s Request for Change of Bank assigned for the project.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      Former Bank.

    3.      REGA.

    Requisites

    1.        Application form elaborating reasons for requesting change.

    2.        Escrow Account Agreement with alternative Bank.

    3.        Report of former Bank / Chartered Account of account current situation.

    4.        Statement of account of financial transactions up to request date

     

     

    Developer Role

    1.      Submitting application form.

    2.       Attaching Escrow Account Agreement with alternative Bank.

     

    Former Bank / Chartered Accountant Role

    1.       Providing a report of account current situation.

    2.      Attaching deposit record.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.       Approving change of Bank assigned for the project.

    2.      Approving closure of previous escrow account.

    3.      Updating Project Register.

     

     

     

    14. Document of Procedure for Issuing License for Marketing Off-Plan Real Estate Project (without Receiving Amounts)

    Process Description: Handling Request for Marketing Off-Plan Real Estate Project (without Paying Amounts)

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application Form.

    2.      Number of property registration deed.

    3.      Number of marketing agreement concluded by and between the real estate broker and the Developer.([16])

    4.      A copy of Development Agreement by and between the Developer and Landlord.([17])

    5.      Project architectural designs and engineering drawings  or building permit.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.       Ensuring that requisites are met.

     

    Key Outputs

    1.      License for Marketing Off-Plan Real Estate Project (without Receiving Amounts).

    2.      Updating Project Register.

     

     

     

    15. Document of Procedure for Extending License for Marketing Off-Plan Real Estate Project (without Receiving Amounts)

    Process Description: Handling Request for Extending License for Marketing Off-Plan Real Estate Project (without Receiving Amounts)

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.       Application form elaborating number of License for Marketing Project and reason for extension.

     

     

    Developer Role

    1.               Submitting application form.

     

    REGA Role

    1.               Ensuring that requisites are met.

     

    Key Outputs

    1.               Approving extension of License for Marketing Off-Plan Real Estate Project (without Receiving Amounts).

    2.               Updating Project Register.

     

     

     

    16. Document of Procedure for Issuing License for Marketing Off-Plan Real Estate Project (with Receiving Amounts)

    Process Description: Handling Request for Issuing License for Marketing Off-Plan Real Estate Project (with Receiving Amounts)

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form, including undertaking of the following:

    a.       Not to receive more than (5%) of the real estate unit value.

    b.      Depositing all received booking amounts in the escrow account designated for this purpose.

    2.      Number of property registration deed.

    3.      Number of marketing agreement concluded by and between the real estate broker and the Developer.([18])

    4.      A copy of Development Agreement by and between the Developer and Landlord.([19])

    5.      Project architectural designs and engineering drawings or building permit.

    6.      Attaching project status report and future plans.

    7.       Booking Application Form.

    8.      IBAN of escrow account designated for the project.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Opening escrow account for the project.

    2.      Issuing License for Marketing Off-Plan Real Estate Project (with Receiving Amounts) that includes escrow account IBAN.

    3.      Approving Booking Application Form.

    4.      Updating Project Register.

    17. Document of Procedure for Refunding Buyer’s Amounts[20] from Escrow Account During License Period (Marketing with Attaching Amounts) Based on Buyer’s Request.

    Process Description: Handling Procedure for Refunding Booking Applicant’s Amounts from Escrow Account During License Period upon Booking Applicant’s Request.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.       REGA

    Requisites

    1.      Submitting application form elaborating:

    a.       Project Name and License Number.

    b.     Escrow Account Number.

    c.      Booking Applicant’s Bank and Account Number.

    d.      Booking amount.

    e.       Booking date.

    2.       Booking Applicant’s IBAN Certificate.

     

    3.      Proof of depositing amount into the escrow account by an official document issued by the Bank.

    4.       A written statement from Booking Applicant indicating desire to have booking amount refunded to their account.

     

     

    Developer Role

    1.      Filling in the application form.

    2.      Attaching required documents.

     

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Addressing the Saudi Central Bank “SAMA” to transfer booking amount to Booking Applicant’s personal account.  

     

    18. Document of Procedure for Refunding Amounts Deposited in Escrow Account to their Owners.

    Process Description: Handling Refunding Amounts Deposited in Escrow Account under License for Marketing Real Estate Project to their Owners in Case of Canceling License for Marketing or Failure to Complete License for Off-Plan Sale or Lease of after Lapse of (180) Days.

    Procedure:

     

     

    Parties to Relationship

    1.      Developer

    2.      REGA.

    3.      Bank.

    Requisites

    1.      Application Form elaborating:

    a.       Project Name and License Number.

    b.      Identifying names of all Booking Applicants, paid amount and bank account number (IBAN).

    2.      Receipts of payment by Booking Applicant.

    3.       Booking Register.

    4.      Updated statement of escrow account.

     

    Developer Role

    1.               Submitting application form.

    2.               Attaching receipts of payment by Booking Applicant.

    3.               Attaching Booking Register.

    4.               Attaching a copy of booking applications.

     

    Bank Role

    1.      Attaching updated statement of escrow account.

     

    REGA Role

    1.               Ensuring that requisites are met.

     

    Key Outputs

    1.      Refunding amounts to Booking Applicants.

    2.      Updating Project Register.

    3.      Closing escrow account.

    4.      Notifying Developer.

     

    19. Document of Procedure for Canceling License for Marketing Off-Plan Real Estate Project.

    Process Description: Handling Request for Canceling License for Marketing Off-Plan Real Estate Project

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form, including project license number and reasons for cancellation.

    2.      Project Booking Register.([21])

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Ensuring that there are not amounts paid to Booking Applicant.([22])

     

    Key Outputs

    1.      Canceling License for Marketing Off-Plan Real Estate Project.

    2.      Closing Escrow Account.([23])

    3.      Updating Project Register.

     

     

     

     

     

     

    20. Document of Procedure for Issuing License for Selling Off-Plan Real Estate Project

    Process Description: Handling Request for Issuing License for Selling Off-Plan Real Estate Project.

     Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.       Application form, including an undertaking to commence construction works within six (6) months from the date of license, and to inform REGA of the actual start date of works.

    2.      A letter issued from Etmam Center or any competent authority responsible for building permits confirming that the project meets the requirements for building permit.([24])

    3.      Commercial registration, including real estate development activity.([25])

    4.      Chamber of Commerce Certificate.([26])

    5.      A copy of credit record elaborating Developer’s credit standing.([27])

    6.      Valid real estate project building permit.([28])

    7.      Property title deed.

    8.      A copy of the agreement made by and between the Developer and Landlord or Beneficial Owner.([29])

    9.      A copy of the agreement made by and between the Main Developer and Sub-developer.([30])

    10.  Project feasibility study approved by a Consulting Office.([31])

    11.  Architectural designs and engineering drawings approved by the competent authorities. 

    12.  A copy of the agreement made by and between the Developer and Consulting Office.

    13.  A copy of the agreement made by and between the Developer and Chartered Accountant.

    14.  A form of sale contract by and between the Developer and Buyer.

    15.  Escrow Account Opening Agreement with the Bank.

    16.  Letter of consent from Property Owner to annotate the property title deed, if the property is not registered in the Real Estate Registry.

    17.  Mortgagee’s consent in case the property title deed is mortgaged.

    18.  A letter listing authorized signatories for signing disbursement documents.

    19.      Unit Subdivision Report.([32])

    20.      A copy of the approved primary plan.([33])

    21.     Certificate of Completing REGA Approved Qualification Program.

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Completing procedures for annotation on property title deed.

    3.       Ensuring that the Developer attains the required score based on project area.([34])

     

    Key Outputs

    1.      Issuing License for Selling Off-Plan Real Estate Project.

    2.      Addressing Bank to activate escrow account.

    3.      Updating Project Register.

     

     

     

    21. Document of Procedure for Issuing License for Leasing Off-Plan Real Estate Project

    Process Description: Handling Request for Issuing License for Leasing Off-Plan Real Estate Project.

     Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.       Application form, including an undertaking to commence construction works within six (6) months from the date of license, and to inform REGA of the actual start date of works.

    2.      A letter issued from Etmam Center or any competent authority responsible for building permits confirming that the project meets the requirements for building permit.([35])

    3.      Commercial registration, including real estate development activity.

    4.      Chamber of Commerce Certificate.

    5.      A copy of credit record.([36])

    6.      Valid real estate project building permit.([37])

    7.      Property title deed, or usufruct contracts for government lands.

    8.      A copy of the agreement made by and between the Developer and Landlord or Beneficial Owner.([38])

    9.      A copy of the agreement made by and between the Main Developer and Sub-developer.([39])

    10.  Project feasibility study approved by a consulting office.([40])

    11.  Architectural designs and engineering drawings approved by the competent authorities.

    12.  A copy of the agreement made by and between the Developer and Consulting Office.

    13.  A copy of the agreement made by and between the Developer and Chartered Accountant.

    14.  Form of lease agreement made by and between the Developer and Buyer.

    15.  Escrow Account Opening Agreement with the Bank.

    16.  Letter of consent from Property Owner to annotate the property title deed, if the property is not registered in the Real Estate Registry.

    17.  Mortgagee’s consent in case the property title deed is mortgaged.

    18.  A letter listing authorized signatories for signing disbursement documents.

    19.      Unit Subdivision Report.([41])

    20.      A copy of the approved primary plan.([42])

    21.   A report from the Consulting Office in case the project is started before submitting licensing application.([43])

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Completing procedures for annotation on property title deed.

    3.       Ensuring that the Developer attains the required score based on project area.([44])

     

    Key Outputs

    1.      Issuing License for Leasing Off-Plan Real Estate Projects.

    2.      Addressing Bank to activate escrow account.

    3.      Updating Project Register.

     

     

     

    22. Document of Procedure for Dividing Off-Plan Real Estate Project into Multiple Zones.

    Process Description: Handling Request for Dividing Off-Plan Real Estate Project into Multiple Zones.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form, including an undertaking to start work in any zone only after receiving REGA approval.([45])

    2.      A separate annex to Escrow Account Agreement for each zone.

    3.      Annex to the agreement made with the Chartered Accountant that stipulates providing separate reports for each zone.([46])

    4.      Annex to the agreement made with the Consulting Office that stipulates providing separate reports for each zone.([47])

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving subdivision of the real estate project into multiple zones.

    2.      Approving commencement of work in project specified zone.

    3.      Updating Project Register.

    4.      Addressing Bank to activate the escrow account for specified zone.

     

     

     

     

     

     

    23. Document of Procedure for Requesting Update of Information of Licensed Project.

    Process Description: Handling Request for Change of Project Plan after Licensing.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form, including an undertaking by the Developer that project plan change will not affect handover date of sold units.

    2.       Approval of landlord or usufructuary. 

    3.      Providing the following documents, while being approved by the Consulting Office:

    a.       Updated timeline, including all S-curves (according to the template).

    b.      Reasons for change.

    c.       The realism of project start and end dates in the new plan.

     

     

    Developer Role

    1.      Filling in the application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving change of project plan.

    2.      Updating Project Register.

     

     

     

     

     

    24. Document of Procedure for Requesting Increase or Decrease in the Number of Units in Licensed Project.

    Process Description: Handling Request for Increase or Decrease in the Number of Units in Licensed Project.

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form, elaborating non-objection by the Buyers or Tenants to the increase if this affects their ownership,([48]) in addition to reasons for change and resulting impacts.

    2.      Providing the following documents, while being approved by the Consulting Office:

    a.       Project Current Status Report.

    b.      Cadastral report for the updated area.

    c.       Updated relative weight table.

    d.      Updated Bill of Quantities.

    e.       Updated timeline.

    f.        An updated statement including a unique number for each unit of the project along with unit counter.

    3.      Unit Subdivision Report.([49])

    4.       Approval of Chartered Accountant.

    5.       Approval of Consulting Office.

    6.      Approval of landlord or usufructuary.([50])

    7.      Updating project feasibility study.

    8.       Architectural designs and engineering drawings approved by the competent authorities.

    9.      Updating building permits or Etmam Center letter.  

    10.  A letter from the Chartered Accountant confirming that there are no sales on the canceled units accompanied by project current status report.([51])

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Ensuring that the project land area has not been affected according to the area specified in project license.

     

    Key Outputs

    1.      Approving Request for Increasing or Decreasing Unit Number.

    2.      Updating License.

    3.      Updating Project Register.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    25. Document of Procedure for Requesting Change in Approved Contracts of Buyers or Tenants for the Project.

    Process Description: Handling Request for Change in Approved Contracts of Buyers or Tenants for the Project.

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form elaborating clauses to be amended and reasons for amendment, including an undertaking to provide annexes to the contract after their amendment and signing by the Buyers and Tenants.

    2.      A copy of amended contract.([52])

    3.      A written consent by the Buyers or Tenants of amending their contracts.

     

     

    Developer Role

    1.      Filling in the application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.       Ensuring that the amended contract does not violate provisions of the Law, Implementing Regulations and standard form contract.

     

    Key Outputs

    1.      Approving amendment to contracts.

    2.      Updating Project Register.

     

     

     

     

     

    26. Document of Procedure for Requesting Change to Approved Agreements of One of Project Parties.

    Process Description: Handling Request for Change of Approved Agreements of Project Parties (Chartered Accountant / Landlord / Consulting Office / Bank).

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form elaborating amended clauses and reasons for amendment.

    2.      A copy of new concluded agreement.

     

     

    Developer Role

    1.      Filling in the application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Ensuring that the amended contract does not violate provisions of the Law and Implementing Regulations.

     

    Key Outputs

    1.      Approving amendments to the agreements.

    2.      Updating Project Register.

     

     

     

     

     

     

    27. Document of Procedure for Notifying Change to Specifications of Licensed Project.

    Process Description: Handling Request for Change to Specifications of Licensed Project.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form elaborating amended specifications and reasons for amendment, including an undertaking to provide annexes to the contract after their amendment and signing by the Buyers and Tenants.

    2.      A copy of the new contract including the amended specifications.([53])

    3.      Approval of Buyers or Tenants of amendment to their contracts.

    4.      Providing the following documents, while being approved by the Consulting Office:

    a.       A report elaborating the extent to which project construction cost is impacted.

    b.      A statement confirming that the proposed building materials are of equal or higher quality than the previously used materials.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Ensuring that the new contract does not violate provisions of the Law, Implementing Regulations and standard form contract.

     

    Key Outputs

    1.      Approving change of project specifications.

    2.      Updating Project Register.

    28. Document of Procedure for Requesting Notification to REGA to Cancel Sale or Lease Contract by Mutual Consent.

    Process Description: Handling Request for Notification to REGA to Cancel Sale or Lease Contract by Mutual Consent.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application Form.

    2.      Consent of Buyer or Tenant of termination.

    3.      Deallocation Form.([54])

    4.      Approval of Financer.([55])

    5.      Sale or lease contract entered into by and between the parties that is requested to be terminated.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Non-objection Request for Termination from the Real Estate Development Fund (REDF).([56])

     

    Key Outputs

    1.      Refunding amounts from the escrow account.

    2.      Updating Project Register.

     

     

     

     

    29. Document of Procedure for Requesting REGA Approval to Terminate Off-Plan Sale or Lease Contract.

    Process Description: Handling Request for REGA Approval to Terminate Off-Plan Sale or Lease Contract.

    Procedure:

     

    Parties to Relationship

    1.      Developer / Buyer or Tenant

    2.      REGA

    Requisites

    1.                Application form elaborating reasons for requesting termination.

     

     

    Developer / Buyer or Tenant Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.       Ensuring that requisites are met.

    2.      Considering request.

     

    Key Outputs

    1.      REGA approval.

    2.      Refunding amounts from the escrow account.

    3.      Updating Project Register.

     

     

     

     

     

     

    30. Document of Procedure for Requesting Notification to REGA to Resale or Re-lease Off-Plan Real Estate Unit.

    Process Description: Handling Request for Notification to REGA to Resale or Re-lease Off-Plan Real Estate Unit.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.               Application Form.

    2.               The contract made by and between the Developer and former Buyer / Tenant.

    3.               A letter of consent by the Buyer / Tenant of assigning contract to a third party.

    4.               The contract made by and between the Developer and new Buyer / Tenant.

     

     

    Developer Role

    1.               Submitting application form.

    2.               Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

     

    Key Outputs

    1.      Updating Project Register.

     

     

     

    31. Document of Procedure for Requesting Change of Licensed Project Name.

    Process Description: Handling Request for Change of Licensed Project Name.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

                                                                  Requisites

    1.               Application form, including undertaking of the following:

    a.        Updating project name in the contracts and agreements.

    b.      Providing annexes to the contract after being signed by the Buyer / Tenant, including the new name.

    c.       Providing annexes to the agreements made with the related parties, including the new name.

    2.               Form of sale / lease contract, including project new name.

     

     

    Developer Role

    1.               Filling in the application form.

    2.               Attaching required documents.

     

    REGA Role

    1.               Ensuring that requisites are met.

    2.               Ensuring that the new contract does not violate provisions of the Law, Implementing Regulations and standard form contract.

     

    Key Outputs

    1.      Approving change of project name.

    2.      Updating Project License.

    3.      Updating Project Register.

     

     

     

    32. Document of Procedure for Requesting Update of Developer’s Information for Licensed Project.

    Process Description: Handling Request for Update of Developer’s Information (e.g., Commercial Name / National Address) for Licensed Project

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.               Application form, including undertaking of the following:

    a.       Updating information in the contracts and agreements.

    b.      Providing annexes to the contract after being signed by the Buyer / Tenant, including the updated information.

    c.       Providing annexes to the agreements made with the related parties, including the updated information.

    2.               Developer’s previous commercial registration.

    3.               Developer’s new commercial registration.

    4.               Form of sale / lease contract, including new developer name.

     

     

    Developer Role

    1.               Submitting application form.

    2.               Attaching required documents.

     

    REGA Role

    1.               Ensuring that requisites are met.

     

    Key Outputs

    1.               Updating Developer’s information in Developer Registry.

    2.               Updating Project License.

    3.               Updating Project Register.

     

     

     

    33. Document of Procedure for Requesting Addition of an Authorized Signatory for Disbursement Document from Escrow Account.

    Process Description: Handling Request for Addition of an Authorized Signatory (on behalf of Developer, Consulting Office or Chartered Accountant) for Disbursement Document from Escrow Account.

    Procedure:

     

    Parties to Relationship

    1.      Developer / Consulting Office / Chartered Accountant.

    2.      REGA

    Requisites

    1.      Application form, including information of authorized signatory.

     

     

    Developer / Consulting Office / Chartered Accountant Role

    1.      Submitting application form.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Addressing Bank to add the authorized signatory for disbursement document, and providing Bank with authorized signatory’s signature.

    2.      Notifying project related parties([57]) of adding authorized signatory.

    3.      Updating Project Register.

     

     

     

    34. Document of Procedure for Requesting Removal of Authorized Signatory for Disbursement Document from Escrow Account.

    Process Description: Handling Request for Removal of Authorized Signatory (Developer, Consulting Office or Chartered Accountant) for Disbursement Document from Escrow Account.

    Procedure:

     

    Parties to Relationship

    1.      Developer / Consulting Office / Chartered Accountant.

    2.      REGA

    Requisites

    1.      Application form, including information of authorized signatory.

     

     

    Developer / Consulting Office / Chartered Accountant Role

    1.      Submitting application form.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.       Addressing Bank to remove name of the authorized signatory for disbursement document.

    2.      Notifying project related parties([58]) to remove name of the authorized signatory.

    3.      Updating Project Register.

     

     

     

    35. Document of Procedure for Requesting Removal of Annotation from Property Title Deed for Cases Specified in Article (18) of the Regulations.

    Process Description: Handling Request for Removing Annotation for Projects Established on Government-Owned Land, or for Completion of Procedures for Subdivision, Merger, Modification, Transfer of Ownership or Conveyance to Buyer prior to Completion of Real Estate Unit.

     

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form elaborating reason for and purpose of removing annotation.([59])

     

     

    Developer Role

    1.      Submitting application form.

     

    REGA Role

    1.      Ensuring that the requisites are met.

    2.      Ensuring that the case is among the cases stipulated by Article (18) of the Implementing Regulations.

     

    Key Outputs

    1.      Approving removal of annotation on property title deed or removal of annotation to achieve a specific purpose and then reinstate annotation on the title deed depending on the circumstances.

    2.      Addressing competent authorities to approve removal of annotation / removal of annotation and then reinstate annotation after achieving purpose.

    3.      Updating Project Register.

     

     

     

     

    36. Document of Procedure for Submitting Progress Report of Real Estate Development Project.

    Process Description: Handling Request for Submitting Periodic Reports by Project Related Parties.

    Procedure:

     

    Parties to Relationship

    1.      REGA.

    2.      Developer / Consulting Office / Chartered Accountant / Bank.

    Requisites

    1.      Periodic report as per approved wording.

    2.      Statement of Account.([60])

     

     

    REGA Role

    1.               Requesting a report from the related parties([61])

    2.               Ensuring that requisites are met.

     

    Developer / Consulting Office / Chartered Accountant / Bank Role

    1.      Filing periodic report to REGA.

    2.      Providing report within the specified period.

     

    Key Outputs

    1.      Approving report.

    2.      Updating Project Register.

    3.      Updating database.

     

     

     

    37. Document of Procedure for Developer’s Request to Withdraw Surplus from Escrow Account Before Project Completion.

    Process Description: Handling Request for Withdrawing Surplus of Project Completion Actual Cost from Escrow Account before Project Completion.

    Procedure:

     

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application Form.

    2.      Bank’s report of account current situation.

    3.       Chartered Accountant’s report.

    4.       A final financial report for project completion, including project actual cost([62])

    5.      A letter of compliance from the Chartered Accountant confirming that 20% of the surplus over project actual cost is held in the escrow account until the real estate project is completed.

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that the requisites are met

    2.      Ensuring that the Developer has not delayed in work phases or compromised the agreed quality standards stipulated in the contracts.

    3.      Identifying surplus amount.

     

    Key Outputs

    1.      Approving disbursement of surplus amount or part thereof from the escrow account.

    2.      Notifying project related parties([63]).

    3.      Updating Project Register.

     

     

    38. Document of Procedure for REGA Payment of Government Agencies’ Dues on Real Estate Project from Escrow Account.

    Process Description: Handling Procedure for REGA Payment, in Emergency Cases, of Government Agencies’ Dues on Real Estate Project from Escrow Account.

    Procedure:

     

    Parties to Relationship

    1.      Government Agency.

    2.      REGA.

    Requisites

    1.      A letter from the Government Agency requesting payment, accompanied by the writ of execution for the financial dues.

    2.      Evidence confirming that there are financial dues on the project by the Government Agency.

     

     

    Government Agency Role

    1.      Providing requisites.

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.      Ensuring that the claim pertains to the licensed real estate project.

     

    Key Outputs

    1.      Addressing Bank to make disbursement from the escrow account for the Government Agency.

    2.      Notifying Chartered Accountant of approving disbursement from the escrow account.

    3.      Notifying Consulting Office of approving disbursement from the escrow account.

    4.      Updating Project Register.

     

     

     

    39. Document of Procedure for Developer’s Request to Pay Government Agencies’ Dues Related to Licensed Project from Escrow Account.

    Process Description: Handling Developer’s Request, in Emergency Cases, to Pay Government Agencies’ Financial Dues from Escrow Account Related to the Licensed Project, Excluding Violations by the Developer or Project.

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form elaborating amounts to be disbursed and payee.

    2.      Evidence confirming that there are financial dues on the project by the Government Agency.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving disbursement from the escrow account.

    2.      Notifying Chartered Accountant of approving disbursement from the escrow account.

    3.      Notifying Bank of approving disbursement from the escrow account.

    4.      Updating Project Register.

     

     

     

    40. Document of Procedure for Refunding Amounts to Buyers or Tenants from Escrow Account.

    Process Description: Handling Procedure for Refunding Amounts to Buyers or Tenants Based on the Decision of Committee for Handling Delayed and Stalled Projects.

    Procedure:

    Parties to Relationship

    1.      REGA.

    Requisites

    1.      Decision of the Committee for Handling Delayed and Stalled Projects.

     

     

    REGA Role

    1.      Ensuring that the requisites are met

     

    Key Outputs

    1.      Addressing Bank to make disbursement from the escrow account.

    2.      Updating Project Register.

     

     

     

    41. Document of Procedure for Disbursement of Dues to Project Parties upon Maturity.

    Process Description: Handling Procedure for Disbursement of Dues to Project Parties, in Emergency Case, from Escrow Account if Developer Fails to Cooperate.

    Procedure:

    Parties to Relationship 

    1.      REGA

    2.      Consulting Office / Chartered Accountant

    Requisites

    1.      Decision of the Committee for Handling Delayed and Stalled Projects.

     

     

    Consulting Office / Chartered Accountant Role

    1.      Submitting application.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving disbursement from the escrow account.

    2.      Addressing Bank to make disbursement from the escrow account.

    3.      Updating Project Register.

    4.      Informing the Committee for Considering Violations of Provisions of the Law in case of any violations by the Developer. 

    5.      Notifying Chartered Accountant of approving disbursement from the escrow account.

    6.      Notifying Consulting Office of approving disbursement from the escrow account.

     

     

     

    42. Document of Procedure for Transferring Escrow Account Amounts to Project’s Designated Escrow Account from Alternative Developer.

    Process Description: Handling Procedure for Transferring Escrow Account Amounts to Project’s Designated Escrow Account from Alternative Developer.

    Procedure:

     

    Parties to Relationship

    1.      Alternative Developer.

    2.       REGA

    Requisites

    1.      Providing application form elaborating escrow account number and license number.

    2.      Decision of the Committee for Handling Delayed and Stalled Projects.

    3.       Updated report of project escrow account amounts from the Bank.

    4.      Escrow Account Opening Agreement with the Bank.

     

     

    Developer Role

    1.       Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that the requisites are met

     

    Key Outputs

    2.      Addressing Bank to transfer amounts of previous escrow account to the Bank assigned for the project by the Alternative Developer.

    3.      Notifying project related parties([64]).

    4.      Updating Project Register.

     

     

     

     

    43. Document of Procedure for Notifying Developer to Remedy Defects.

    Process Description: Handling Procedure for Notifying Developer to Remedy Defects.

    Procedure:

    Parties to Relationship

    1.      REGA

    2.      Consulting Office.

    3.      Bank.

    4.      Chartered Accountant.

    5.       Buyers / Tenants.

    Requisites

    1.      A report elaborating complaints filed by Buyers / Tenants([65])

    2.      A report by the Consulting Office, including the table of weights for quantities showing cost of remedying defects.

    3.      Updated statement of escrow account.

    4.      Chartered Accountant’s report.

     

     

    Buyers / Tenants Role

    1.      Attaching compliant([66]).

     

    Consulting Office Role

    1.      Attaching a report, including the table of weights for quantities showing cost of remedying defects

     

    Bank Role

    1.      Attaching updated statement of escrow account.

     

    Chartered Accountant Role

    1.      Attaching Chartered Accountant’s report.

     

     

     

     

    REGA Role

     

    1.       Ensuring that the requisites are met

    2.      Issuing a decision of remedying defects.

    Key Outputs

    1.      Notifying Developer of REGA decision to remedy defects.

    2.      Approving extension of retaining retention amount or Request for Extending Bank Guarantee, as the case may be, for a period not exceeding six (6) months.

    3.      Notifying project related parties([67]).

    4.      Updating Project Register.

     

     

     

    44. Document of Procedure for Disbursement from Escrow Account to Remedy Project Defects.

    Process Description: Handling Procedure for REGA Desire to Make Disbursement from Escrow Account to Remedy Project Defects.

    Procedure:

    Parties to Relationship

    1.      REGA.

    2.      Consulting Office.

    3.      Bank.

    4.      Chartered Accountant.

    5.      Legally licensed expert.

    Requisites

    1.      A report elaborating complaints received from Buyers / Tenants.([68]))

    2.      Notification issued to the Developer to remedy defects.

    3.      A report by the Consulting Office elaborating defects and table of weights for quantities showing costs of remedying defects.

    4.      Chartered Accountant’s report.

    5.      Bank’s report of account current situation.

    6.      Expert’s report.

    7.      A copy of the contract with the Contractor.

    8.      Evidence confirming that the Developer does not start remedying defects within (5) days as of notification date.

     

    Consulting Office Role

    1.      Attaching required documents.

     

    Bank Role

    1.      Attaching required documents.

     

    Chartered Accountant Role

    1.      Attaching required documents.

     

    Expert Role

    1.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that the requisites are met

    2.      Ensuring that the Developer does not start remedying defects within (5) business days.

     

    Key Outputs

    1.      Approving disbursement from the escrow account or confiscating bank guarantee. 

    2.      Addressing Bank to make disbursement from the escrow account or confiscating bank guarantee, as the case may be.

    3.      Notifying project related parties([69]).

    4.      Updating Project Register.

     

     

     

    45. Document of Procedure for Developer’s Request for Transferring Amounts Between Sub-Accounts within Escrow Account.

    Process Description: Handling Developer’s Request for Transferring Amounts between Sub-Accounts within Escrow Account without Prejudice to Provisions of Articles (12 and 14) of the Law([70]).

    Procedure:

     

    Parties to Relationship

    1.      REGA

    2.      Developer

    Requisites

    1.      Application form, including:

    a.       Project name and license number.

    b.       Main account number and numbers of sub-accounts between which the amount transfer is requested.

    c.       Developer’s undertaking to bear the costs related to administrative and marketing expenses, if needed.

    2.      Consulting Office’s report.

    3.      Chartered Accountant’s report.

    4.      Bank’s report of account current situation.

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that the requisites are met

     

    Key Outputs

    1.      Approving transfer of amounts between accounts. 

    2.      Addressing Bank to approve transfer of amounts between accounts.

    3.      Notifying Chartered Accountant.

    4.      Updating Project Register.

     

     

    46. Procedure for Canceling License of Licensed Real Estate Project.

    Process Description: Handling Request for Canceling License for Real Estate Project (Sale / Lease).

    Procedure:

     

    Parties to Relationship

    1.      Developer

    2.      REGA.

    Requisites

    1.      Application form elaborating reasons for cancellation.

    2.      Chartered Accountant’s report.

    3.      Bank’s report of account current situation.

    4.      Consulting Office’s report.

    5.      Final settlement with project related parties([71]), or a decision issued by the Committee([72]).

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving cancellation of project license.

    2.      Notifying project related parties ([73]).

    3.      Notifying notarization authority to remove annotation / reinstate annotation on the title deed, as applicable.

    4.      Addressing Bank to release amounts in the escrow account and closing account.

    5.      Updating Project Register.

     

     

    47. Document of Procedure for Ceasing Violating Licensed Real Estate Project.

    Process Description: Handling Procedure for Ceasing Licensed Real Estate Project that Violates Provisions of the Law and Implementing Regulations until the Violation is Remedied (Sale / Lease).

    Procedure:

    Parties to Relationship

    1.      REGA.

    Requisites

    1.      Committee for Considering Violations of Provisions of the Law.

     

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Notifying project related parties ([74]).

    2.      Addressing Bank to suspend escrow account transactions.

    3.      Updating Project Register.

     

     

     

    48. Document of Procedure for Canceling License Following Committee Decision to Refund Amounts in Real Estate Project, by Amicable Liquidation, or Referral to the Competent Court

    Process Description: Handling Procedure for Canceling License after Issuing Decision of the Committee for Handling Delayed and Stalled Real Estate Projects to Refund Amounts in Real Estate Projects, by Amicable Liquidation, or Referral to the Competent Court.

    Procedure:

    Parties to Relationship

    1.  REGA

    Requisites

    1.  A decision issued by the Committee for Handling Delayed and Stalled Real Estate Projects.

     

     

    REGA Role

    1. Ensuring that Committee’s decision is unappealable either by lapse of sixty (60) days from the date of notification, or by the issuance of a final court judgment dismissing claim to annul Committee’s decision.

     

     

    Key Outputs

    1.      Canceling license.

    2.      Notifying project related parties([75]).

    3.      Notifying REDF([76])

     

     

     

    49. Document of Procedure for Completing Part of Real Estate Project.

    Process Description: Handling Developer’s Request for Completing Part of Real Estate Project.

    Procedure:

     

     

    Parties to Relationship

    1.      Developer

    2.      REGA.

    Requisites

    1.      Application form elaborating number of units 100% completed.

    2.      Consulting Office’s statement confirming the units that are 100% completed, along with a report elaborating the situation of service delivery.

    3.      Certificate of completion or its equivalent for the units intended to be completed.

    4.      Updated Buyer Registry.

    5.      Buyers’ Handover Minutes.

    6.      A letter from the Chartered Accountant specifying amount equivalent to 5% of total construction cost of the completed units.

    7.      Certificates of completion for the completed units issued by the Consulting Office.

    8.      Engineering report of the completed works.

    9.      Project photo report after completion.

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving Request for Approving Unit Completion.

    2.      Notifying project related parties ([77]).

    3.      Notifying notarization authorities to remove annotation on the title deed, as applicable, for completed units.

    4.      Updating Project Register.

     

    50. Document of Procedure for Completing Entire Real Estate Project. 

    Process Description: Handling Developer’s Request for Approving Completion of Entire Real Estate Project.

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA.

    Requisites

    1.      Application form elaborating completion of project units 100%.

    2.      Consulting Office’s statement confirming that the units are 100% completed, along with a report elaborating the situation of service delivery.

    3.      Construction certificate of completion or its equivalent.

    4.      Updated Buyer Registry.

    5.      Buyers’ Handover Minutes.

    6.      A letter from the Chartered Accountant specifying amount equivalent to 5% of total construction cost.

    7.      Certificate of completion issued by the Consulting Office and notarized by the Chamber of Commerce.

    8.      Engineering report of the completed works.

    9.       Project photo report after completion.

    10.  A report elaborating project budget ([78])

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Approving Request for Approving Project Completion.

    2.      Notifying Chartered Accountant to retain 5% of total construction cost from escrow account.

    3.      Addressing Bank to release amounts deposited in the escrow account and retain the percentage in accordance with Paragraph (2).

    4.      Notifying project related parties ([79]).

    5.      Notifying notarization authority to remove annotation / reinstate annotation on the title deed, as applicable.

    6.      Updating Project Register.

     

    51. Document of Procedure for Requesting Change to Unit Models in Real Estate Project.

    Process Description: Handling Request for Change to Unit Models in Real Estate Project.

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA.

    Requisites

    1.      Application form elaborating reasons for request, including an undertaking of modifying sold units.

    2.      Providing the following documents, while being approved by the Consulting Office: 

    a.       Updated timeline, including all S-curves.  ([80])

    b.      Updated relative weight table.

    3.      Architectural designs and engineering drawings approved by the competent authorities.

    4.      Consent of Buyers / Tenants of units after update.

    5.      Updated building permits

     

     

     

    Developer Role

    1.      Filling in the application form.

    2.      Attaching required documents.

     

     

    REGA Role

    1.      Ensuring that requisites are met.

    2.        Ensuring that the project land area has not been affected according to the area specified in project license.

     

    Key Outputs

    1.      Approving change of project unit models.

    2.      Updating Project Register.

     

     

     

    52. Document of Procedure for Requesting Change of Licensed Real Estate Project Path to the Third Path.

    Process Description: Handling Request for Change of Licensed Real Estate Project Path to the Third Path for Non-Registered Real Estate Properties.

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.       Application Form.

    2.       Project Contractor Agreement.

    3.       A letter from the Consulting Office indicating value of infrastructure cost.

    4.       Depositing value of infrastructure cost or the cost of the part to be developed into the escrow account, or providing a bank guarantee letter in accordance with the Contractor’s agreement and the Consulting Office’s letter.

    5.       Updated statement of escrow account.

     

     

    Developer Role

    1.       Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Converting project to the third path.

    2.      Notifying notarization authority of removing annotation on the title deed.

    3.      Notifying notarization authority of reinstate annotation on the title deed of subdivided units.

     

     

    53. Document of Procedure for Requesting Activation of Escrow Account for a Specific Zone.

    Process Description: Handling Request for Activating Escrow Account for a Specific Zone.

    Procedure:

    Parties to Relationship

    1.      Developer

    2.      REGA

    Requisites

    1.      Application form elaborating zone number related to the account to be activated, number of units, lease cost and term.

    2.      A report from the Consulting Office of the completed works in the remaining zones.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that requisites are met.

     

    Key Outputs

    1.      Addressing Bank to activate escrow account.

    2.      Notifying project related parties([81]).

    3.      Updating Project Register.

     

     

     

    54. Replacing Alternative Developer in a Delayed or Stalled Off-Plan Sale Real Estate Project with an Alternative Developer.

                      Process Description: Handling Procedure for Replacing Alternative Developer in a Delayed or Stalled Off-Plan Sale Real Estate Project with an Alternative Developer.


                     Procedure:

    Parties to Relationship

    1.      REGA

    2.      Alternative Developer.

    Requisites

    1.       Application form, including an undertaking to commence construction works within six (6) months from the date of license, and to inform REGA of the actual start date of works.

    2.       Decision of the Committee for Handling Delayed and Stalled Real Estate Projects, including approval of awarding project and specifying requirements to be fulfilled by the Alternative Real Estate Developer.

     

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.       Ensuring that the requisites are met according to Committee’s decision.

    2.      Ensuring that the Developer attains the required score based on project area.([82])

    3.      If the Developer is a natural person, the following requirements shall be validated: 

    a.       The project building area shall not exceed (5,000) square meters.

    b.      The project implementation period shall not exceed (three years).

    c.       The number of real estate projects permitted to be implemented annually shall not exceed (three) projects.

     

     

     

     

     

     

     

     

     

    Key Outputs

    1.      Reactivating project license / issuing a new project license.

    2.      Transferring amounts held in project’s escrow account to the escrow account of the Alternative Developer([83]).

    3.      Notifying project related parties ([84]).

    4.      Updating Project Register.

    5.      Delivering project latest reports to the Alternative Developer.

    6.      Handing over project site to the alternative Developer.

    7.      Articulating annexes to the contracts of Buyers / Tenants and determining sold units’ new handover date.

     

     

     

    55. Replacing Alternative Developer in a Delayed or Stalled Off-Plan Lease Real Estate Project with an Alternative Developer.

    Process Description: Handling Procedure for Replacing Alternative Developer in a Delayed or Stalled Off-Plan Lease Real Estate Project.

     

    Parties to Relationship

    1. REGA
    1. Alternative Developer.

    Requisites

    1.       Application form, including an undertaking to commence construction works within six (6) months from the date of license, and to inform REGA of the actual start date of works.

    2.      Decision of the Committee for Handling Delayed and Stalled Real Estate Projects, including approval of awarding project and specifying requirements to be fulfilled by the Alternative Real Estate Developer.

     

    Developer Role

    1.      Submitting application form.

    2.      Attaching required documents.

     

    REGA Role

    1.      Ensuring that the requisites are met according to Committee’s decision.

    2.      Ensuring that the Developer attains the required score based on project area.([85])

    3.      If the Developer is a natural person, the following requirements shall be validated:

    a.       The project building area shall not exceed (5,000) square meters.

    b.      The project implementation period shall not exceed (three years).

    c.       The number of real estate projects permitted to be implemented annually shall not exceed (three) projects.

     

    Key Outputs
    1. Reactivating project license / issuing a new project license.
    2. Transferring amounts held in project’s escrow account to the escrow account of the Alternative Developer([86]).
    3. Notifying project related parties ([87]).
    4. Updating Project Register.
    5. Delivering project latest reports to the Alternative Developer.
    6. Handing over project site to the alternative Developer.
    7. Articulating annexes to the contracts of Buyers / Tenants and determining sold units’ new handover date.

     


    ([1]) Optional requisite.

    ([2]) A. Financial statement for recently established enterprises (less than one year) B. Financial statements for enterprises established for more than one year and less than two years. C. Financial statements for two consecutive years for enterprises established before two years or more.

    ([3]) Optional requisite.

    ([4]) Enterprise owner, manager or one of the employees listed in subscriber list who are on the job shall complete the Approved Qualification Program.

    ([5]) Optional requisite.

    ([6]) Optional requisite.

    ([7]) Implementing Regulations of the Law of Sale and Lease of Off-Plan Real Estate Projects.

    ([8]) Implementing Regulations of the Law of Sale and Lease of Off-Plan Real Estate Projects.

    ([9]) Implementing Regulations of the Law of Sale and Lease of Off-Plan Real Estate Projects.

    ([10])As stipulated by Article (5) of the Regulations.

    ([11])If the value of real estate project exceeds SAR (twenty-five) million, and in accordance with the required classification score pursuant to Article (6) of the Implementing Regulations.

    ([12]) According to the rate specified in Article (6.2) of the Implementing Regulations,

    ([13]) As stipulated by Article (6) of the Implementing Regulations.

     

    ([14]) Providing evidence confirming that Office’s accountants completed REGA Approved Qualification Program according to score specified in Article (7.3).

    ([15]) As stipulated by Article (7) of the Implementing Regulations.

    ([16]) If any.

    ([17]) If any.

    ([18]) If any.

    ([19]) If any.

    [20] Wherever mentioned herein, Booking Applicant means:   The natural or legal person who applies for booking a real estate unit in the real estate project.

    ([21]) If the license to be canceled involves receiving amounts.

    ([22]) If the license to be canceled involves receiving amounts.

    ([23]) If the license to be canceled involves receiving amounts.

    ([24]) It shall suffice in lieu of:  Building permit, architectural designs and engineering drawings approved for the project. 

    ([25]) For legal person.

    ([26]) For legal person.

    ([27]) Issued from a company licensed by the competent authority for credit services.

    ([28]) If the project pertains to the development of real estate units.

    ([29]) If any.

    ([30]) If any.

    ([31]) As stipulated by Article (6) of the Law and Article (11.1) of the Implementing Regulations.

    ([32]) If the project includes subdivided real estate units.

    ([33]) For white land development projects.

    ([34]) As stipulated by Article (5.11) of the Implementing Regulations.

    ([35]) It shall suffice in lieu of: Building permit, architectural designs and engineering drawings approved for the project.

    ([36]) Issued from a company licensed by the competent authority for credit services.

    ([37]) If the project pertains to the development of real estate units.

    ([38]) If any.

    ([39]) If any.

    ([40]) As stipulated by Article (6) of the Law and Article (11.1) of the Implementing Regulations.

    ([41]) If the project includes subdivided real estate units.

    ([42]) For white land development projects.

    ([43]) If any.

    ([44]) As stipulated by Article (5.11) of the Implementing Regulations.

    ([45]) As stipulated by Article (13.2.a)

    ([46]) Including provisions of Article (13) of the Implementing Regulations of the Law of Sale and Lease of Off-Plan Real Estate Projects.

    ([47]) Including provisions of Article (13) of the Implementing Regulations of the Law of Sale and Lease of Off-Plan Real Estate Projects.

    ([48]) A report shall be provided by the Engineering Office, elaborating whether or not there is an impact on the ownership.

    ([49]) If the project includes subdivided real estate units.

    ([50]) If any.

    ([51]) In case of requesting decrease of unit number.

    ([52]) Unsold units.

    ([53]) Unsold units.

    ([54]) If any.

    ([55]) If any.

    ([56]) If the Buyer receives REDF subsidy.

    ([57]) (Consulting Office, Chartered Accountant, Developer).

    ([58]) (Consulting Office, Chartered Accountant, Developer).

    ([59]) Limited to the cases stipulated by Article (18) of the Implementing Regulations and include projects established on government-owned land, or for the completion of procedures related to subdivision, merger, modification, transfer of ownership, or conveyance to the Buyer prior to the completion of the real estate unit.

    ([60]) If the Bank is a party to the relationship.

    ([61]) As stipulated by Article (25) of the Implementing Regulations.

    ([62]) As stipulated by Paragraph (1) of Article (30) of the Implementing Regulations. To be amended to be as follows: The final financial report is based on contracts with suppliers, contractors and service providers, and certified by both the Consulting Office and Chartered Accountant.

    ([63]) (Consulting Office, Chartered Accountant, Landlord, Bank)

    ([64]) (Consulting Office, Chartered Accountant, Marketer, Financers, Landlord)

    ([65]) If any.

    ([66]) If any.

    ([67]) (Buyers / Tenants, Consulting Office, Chartered Accountant, Landlord, Bank)

    ([68]) If any.

    ([69]) (Buyers / Tenants, Consulting Office, Chartered Accountant, Bank)

    ([70]) The total amount disbursed from escrow account for non-construction expenses shall not exceed (20%) of total value of sold real estate units, while retaining (5%) of total construction cost in the escrow account or providing a bank guarantee for the same percentage.

    ([71]) (Buyers, Tenants, Consulting Office, Chartered Accountant, Marketer, Financers, Landlord)

    ([72]) If any.

    ([73]) (Buyers, Tenants, Consulting Office, Chartered Accountant, Marketer, Financers, Landlord)

    ([74]) (Buyers, Tenants, Consulting Office, Chartered Accountant, Marketer, Financers, Landlord)

    ( [75]) (Buyers / Tenants, Consulting Office, Chartered Accountant, Bank, Real Estate Developer, Landlord, Financer, Marketer).

    ( [76]) If any.

    ([77]) (Buyers / Tenants, Consulting Office, Chartered Accountant, Marketer, Financers, Landlord, Bank)

    ([78]) For stalled projects.

    ([79]) (Buyers / Tenants, Consulting Office, Chartered Accountant, Marketer, Financer, Landlord)

    ([80]) Approved by the Consulting Office, including:   (Progress of work, financial flows, number of personnel, number of units, start and end date and the realism of activity sequencing)

    ([81]) (Consulting Office, Chartered Accountant, Marketer, Financers, Landlord)

    ([82]) As stipulated by Article (5.11) of the Implementing Regulations.

    ([83]) In case of changing bank or project’s escrow account.

    ([84]) (Buyers, Consulting Office, Chartered Accountant, Marketer, Financer, Landlord, Bank)

    ([85]) As stipulated by Article (5.11) of the Implementing Regulations.

    ([86]) In case of changing bank or project’s escrow account.

    ([87]) (Tenants, Consulting Office, Chartered Accountant, Marketer, Financers, Landlord)

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