The executive regulations for the system of selling and renting off-plan real estate projects in Saudi Arabia contain 49 main articles distributed into 5 chapters.
She announced The General Real Estate Authority in Saudi Arabia Today we announce the start of receiving applications for licensing off-plan projects through the Authority’s electronic platform, in accordance with the system for selling and renting off-plan real estate projects issued by Cabinet Resolution No. 196. And its executive regulations Approved and published on the Authority’s website.
The Authority confirmed that the license to practice off-plan sales and leasing business contributes to:
- Regulating activity and reducing violations in the off-plan real estate development sector.
- Increasing the supply of commercial, residential, industrial, tourism and other real estate products.
She added that the system is considered one of the financing channels for real estate developers, and a major enabler of the real estate market and raises the reliability of the sector through the governance included in the system, calling on all real estate developers wishing to benefit from the system to apply for qualification – if not previously qualified – and obtain the necessary licenses to practice The activity is through the electronic platform that has been designated to receive applications for qualification and licensing of off-plan projects of various types and forms.
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According to the licensing requirements, the applicant must:
- Passing the qualification program approved by the Authority.
- Submitting a feasibility study for the project, including the estimated financial, construction, and marketing data for the project, the expected financial and administrative expenses, the duration of delivery of the units, and the expected funding sources.
- Providing evidence that the real estate project conforms to the regulatory requirements for building permits, engineering plans, and architectural designs.
The Authority explained that the executive regulations for the system of selling and leasing real estate projects off-plan contained 49 main articles distributed into 5 chapters, including definitions and general provisions of the system.
