The General Authority for Real Estate in Saudi Arabia was established in 2020 in line with the aspirations of the Kingdom’s Vision 2030, which includes among its objectives what relates to strengthening the Saudi national economy and organizing the real estate sector in Saudi Arabia in a better, more controlled and balanced manner. The establishment of the Authority came as a result and in response to urgent requirements, including the need to direct the efforts made in the real estate sector in the correct and optimal manner and organize real estate activities in Saudi Arabia within a comprehensive framework of laws, legislation and controls that ensure the safety of the real estate sector and its development, along with achieving transparency in it in light of the growth of the real estate market in the Kingdom and the increase in related challenges.
The General Authority for Real Estate in Saudi Arabia has been able to achieve a number of major achievements since its establishment; It can be said that the most prominent of these was the organization of the Saudi real estate market, and the enhancement of confidence between investors and real estate developers, which contributed to attracting more real estate investments, along with raising the level of protection of the rights of real estate owners and investors in Saudi Arabia, in accordance with the pivotal role played by the Authority, represented in setting clear, detailed legal frameworks.
While the General Authority for Real Estate in Saudi Arabia provides a diverse package of services including issuing licenses, providing real estate consultations, organizing or resolving real estate disputes, and many other diverse services related to the work of the real estate sector in the Kingdom; the General Authority for Real Estate has established a structure of advanced and developed real estate systems, and established a system of regulations that have become a basic tributary to achieving stability and growth in the Saudi real estate market, which is naturally reflected in enhancing economic development in the country. In this regard, we review in this article the main regulations of the General Authority for Real Estate, which every real estate agent and activist in the Saudi real estate sector should be aware of and knowledgeable about in order to be able to perform real estate work and activity in an ideal, correct and disciplined manner.
List of main regulations from the General Authority for Real Estate in Saudi Arabia
The regulations of the General Authority for Real Estate in Saudi Arabia are considered the cornerstone of regulating the real estate market and achieving balance between all its parties, as these regulations largely guarantee the protection of the rights of both consumers and investors, and provide a legal framework that contributes to reducing real estate disputes. They also support the growth of the Saudi real estate sector, enhance the attraction of investors to it, and consolidate the state of economic stability and the business environment in Saudi Arabia as well. While the regulations of the General Authority for Real Estate reflect the Authority’s commitment to developing the sector and providing an organized and professional work environment for all those concerned with real estate affairs; We review the main regulations set by the General Authority for Real Estate, briefly explaining the main purpose of each:
Executive Regulations for the Real Estate Registration System
This regulation enhances transparency and reliability in real estate transactions in Saudi Arabia by establishing an accurate and unified real estate registration system, which contributes to organizing real estate registration procedures in Saudi Arabia, helps protect the rights of owners, and reduces property disputes. Perhaps the most important feature of this regulation is that it provides accurate and updated data on real estate properties, which facilitates investors and developers and encourages them to make informed decisions. The regulation also includes clear mechanisms for verifying the required documents and papers, which enhances the efficiency of the registration process. In addition, the executive regulations for the real estate registration system in Saudi Arabia embody the trend towards digital transformation, as registration services are provided electronically, which contributes to accelerating procedures and reducing administrative complexities. Thus, the regulation achieves the goal of improving the customer experience and enhancing confidence in the real estate market, which supports market stability and enhances economic development in the Kingdom.
Executive Regulations of the Off-Plan Real Estate Projects Sale and Lease System
This regulation is concerned with regulating the sale and lease of real estate before its construction is completed, and in light of this, sets clear standards for registering projects and documenting sales and lease contracts, which contributes to reducing the risks associated with investing in incomplete projects, and ensuring the provision of accurate and detailed information to buyers about the real estate projects offered, including details related to plans, quality, and expected delivery timing. The regulation also includes mechanisms for monitoring and following up on developers to verify compliance with technical specifications and legal standards.
Executive Regulations of the Real Estate Contributions System
This regulation aims to organize and manage real estate contributions effectively by placing them within a legal framework that defines the conditions and procedures related to establishing and developing real estate contributions, which enhances confidence in this sector and ensures transparency in it. To this end, the regulation sets clear controls on contributions, including defining the rights and obligations of all parties concerned, profit distribution mechanisms, and including financial disclosure requirements. To achieve and ensure this; It is based on control mechanisms that monitor the progress of projects and the extent of compliance with the specified specifications and standards.
Real Estate Consulting and Analysis Regulations
This regulation deals with the regulation and development of the real estate consulting profession in Saudi Arabia with the aim of enhancing the quality of services provided in this field. To achieve this, the regulation relies on setting clear standards for practitioners in the sector, including determining licensing requirements for consulting offices, establishing mechanisms to ensure professional competence through training and qualification, and following standards to evaluate the performance of consultants and provide accurate reports and analyses of the real estate market.
Real Estate Auction Regulations
This regulation regulates real estate auction operations and ensures transparency and integrity in them, based on creating a legal framework that regulates auction procedures by specifying the conditions and requirements necessary to conduct auctions, including mechanisms for advertising and promoting auctions, and controls for registering participants. The regulation also includes clear standards for evaluating real estate, which helps achieve fair prices that reflect market value.
Executive Regulations of the Real Estate Brokerage System
These regulations govern the real estate brokerage profession and link it to controls and systems that ensure its quality and safety, and the transparency and professionalism of the work of real estate brokers, in addition to setting specific requirements for granting licenses to brokers, including qualification and training standards, which contributes to raising the level of professional competence. The regulations also include conditions for concluding real estate contracts and transactions, which reduces the risks associated with them and guarantees the rights of all parties concerned.
Executive Regulations of the Real Estate Units Ownership, Sorting and Management System
This regulation protects the rights of owners and enhances transparency in real estate management by organizing the ownership and management of real estate units effectively according to the clear legal and procedural frameworks it establishes that arrange and clarify the sorting and registration procedures, which facilitates the process of determining ownership and enhances the confidence of owners and investors. The regulation is distinguished by its definition of clear conditions for sorting real estate units, and its provision of mechanisms for managing shared facilities, which guarantees the rights of owners to use and manage shared spaces effectively. It also includes requirements for disclosing information related to units, which enhances transparency and reduces potential disputes.
In this article, we have reviewed the main regulations of the General Authority for Real Estate in Saudi Arabia, including a brief explanation of each of them and their most prominent purposes and competencies, along with talking about the General Authority for Real Estate in Saudi Arabia and clarifying some of its most prominent competencies, services and features of its importance as well.
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