Law of Selling and Leasing Off Plan Real Estate Projects

1. A developer seeking to sell or lease off-plan real estate projects shall, after being registered in the Registry of Developers, submit an application to the competent authority to obtain a license for the real estate project, and shall attach the following: a) A copy of a valid commercial registration permitting the developer to engage in the activity of real estate development. b) A Chamber of Commerce membership certificate. c) A copy of the developer’s credit record from a company licensed by the agency in charge of credit services. Law of Selling and Leasing Off-Plan Real Estate Projects d) A valid building license for the real estate project. e) A valid property registration deed for the real estate to be developed. f) A copy of the agreement concluded between the developer and the landowner or usufructuary, in accordance with the provisions of this Law and the Regulations. g) A copy of the agreement concluded between the prime developer and the sub-developer, if applicable, in accordance with the provisions of this Law and the Regulations. h) Architectural designs and engineering plans approved by the competent agencies. i) A copy of the contract concluded between the developer and the consulting firm, in accordance with the provisions of this Law and the Regulations. j) A copy of the contract concluded between the developer and the certified public accountant, in accordance with the provisions of this Law and the Regulations. k) A feasibility study for the real estate project prepared by a consulting firm which includes the project’s estimated costs, essential areas of expenditure, cash flow, and anticipated timeline for execution. l) An undertaking by the developer to commence construction works for the real estate project within six months from the date of obtaining the license. m) The template of the sale contract to be concluded between the developer and the purchaser as well as the days and dates of delivery of the sold property, in accordance with the provisions of this Law and the Regulations and in a manner not inconsistent with the provisions of Sharia. n) An agreement for opening an escrow account concluded between the developer and a bank licensed to operate in the Kingdom, in accordance with the provisions of this Law and the Regulations. The competent authority may amend or add certain conditions. 2. The competent authority shall decide on the application within 30 days from the date of completion of the required documents. If such period expires without the issuance of a decision, the application shall be deemed approved. If the application is rejected, the rejection decision must be reasoned. The competent authority shall set the requirements necessary for the approval of each phase of a real estate project, and such requirements shall be specified in the Regulations.