Introduction to real estate property law in Saudi Arabia
Real estate property law in Saudi Arabia refers to a set of regulations and executive orders that were established by official authorities in Saudi Arabia in order to regulate and manage real estate practices, and all issues related to real estate within the territory of Saudi Arabia.
The real estate property law aims to enable the real estate sector to develop the national economy, by regulating matters related to real estate ownership, such as real estate prices in Saudi Arabia, in addition to arbitrating the relationship that arises between the owner and the buyer, and providing the best quality experience, which leads to raising the level of real estate services.
Components of the real estate property law in Saudi Arabia The real estate property law in Saudi Arabia consists of the following matters: Ownership of real estate units and their sorting. The real estate owner can sort more than one real estate unit with an instrument showing all the property data, after obtaining the approval of the municipality. The sorting also depends on the licenses issued by the competent municipality of Before, as for new properties, they are sorted according to a certificate certified by an accredited engineering office, and in the event of ownership transfer, all documents are sorted, which are: Title deed, property plans, building permit and other papers required for the property sorting process.
Real estate ownership for non-Saudis
The real estate property law in Saudi Arabia contains provisions that allow non-Saudis to own real estate and invest in it according to several conditions that will be clarified, and among these conditions are the following:
The non-Saudi investor must obtain the approval of the licensing authorities. The total cost of the real estate project must not be less than 30 million Saudi riyals, and the Council of Ministers can amend the amount.
The duration of real estate investment in Saudi Arabia should not exceed 5 years from the date of the investor’s ownership of the property.
It should be noted that non-Saudis are not allowed to own any real estate within the borders of Mecca and Medina. Rather, they are allowed to rent only for a period not exceeding two years, with the possibility of renewal.
Real estate ownership for citizens of the Gulf Cooperation Council countries
This clause within the Real Estate Property Law in Saudi Arabia contains the following matters:
Allowing citizens of the Gulf Cooperation Council countries to own real estate and rent it for the purpose of investment or housing, according to the legal system in the country. If the investor owns the land, he must invest in it and exploit it within a maximum period of 4 years, otherwise the state has the right to dispose of it after that period. The investor has the right to sell the property and dispose of it, if the building is finished, but the land is not permissible except after it is completed and exploited within a period of no less than 4 years from the date of its purchase. The state has the right to expropriate investors’ ownership for the public benefit, in exchange for compensation to the owner.
Procedures for transferring ownership of a property in Saudi Arabia
The procedures for transferring ownership of a property in Saudi Arabia are as follows:
Go to the official authority responsible for transferring real estate ownership in Saudi Arabia. Submitting a land purchase document, if the lands are owned by non-Saudis, after the approval of the Agricultural Development Fund. Submitting all official papers and documents, which contain the seller, buyer, and property information. Providing local ID cards to the seller and buyer, or their representatives. The ownership transfer process is carried out by the concerned employee.