Article 1 of the Saudi Off-Plan Real Estate Sales and Leasing Law

This is the definitions article; wherever one of these terms appears in the Law, the meaning given here is intended, unless the context requires otherwise. Understanding it is essential for reading the remaining articles.

The most important things the article defines:

• Real estate project: A project intended to be developed for selling or leasing developed land or real estate units off-plan, whether before starting its execution or during construction work, according to the agreed design or plan.
• Escrow account: A bank account specific to the project, into which the amounts paid by financiers, buyers or lessees are deposited.
• Developer: A legal entity (that is, a body such as a company, not an individual) licensed to own or lease real estate in order to develop and sell or lease it, including the main developer and the sub-developer who works under an agreement with the main developer.
• Real estate broker: A natural or legal person licensed to practice real estate brokerage or provide real estate services.
• Consulting office and certified accountant: Each is licensed by its own competent body, and must be approved by the competent authority for the real estate project.
• Developers registry: The register in which the names of qualified, licensed developers are entered.
• Real estate unit: The separate part that the developer sells or leases to others, whereas the common part is the part shared among the owners of the units.

The article also states that the competent authority for applying the Law is determined by an order of the Prime Minister, that the official is the head of that authority, and that the Regulations are the Implementing Regulations of the Law.

Article 2 then sets out the activities to which the Law applies, including the off-plan sale and leasing activity in which amounts are received from buyers, lessees or financiers.