Article 15 of the Saudi Off-Plan Real Estate Sales and Leasing Law
المادة 15 من نظام بيع وتأجير مشروعات عقارية على الخارطة
The article requires the developer to submit to the competent authority financial statements, prepared by the certified accountant, for each licensed real estate project.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم المطور بتقديم قوائم مالية - يعدها المحاسب القانوني - لكل مشروع عقاري مرخص له؛ إلى الجهة المختصة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 15 explained in plain English
This article establishes a financial obligation on the developer that supports the competent authority's supervision of licensed projects.
Elements of the obligation:
- Who is bound: The developer, which under Article 1 includes the main developer and the sub-developer.
- What is required: Submitting financial statements.
- Who prepares them: The certified accountant, a person licensed by the competent body and approved by the competent authority for the project.
- Scope: Statements for each licensed real estate project separately, so general statements on the developer's whole activity are not enough.
- To whom they are submitted: The competent authority.
The article does not specify the timing of submitting these statements, how often, or their detailed content.
This article follows the provisions governing the escrow account, including Article 14 on retaining 5% of the construction cost after the completion certificate, as financial statements help track the movement of the project's funds. It is followed by Article 16, which bars disposal of the common part before the units are separated.
A developer who needs to know its detailed obligations in this regard can consult a lawyer who specializes in real estate and commercial cases.
Practical example
A development company in Riyadh is carrying out three licensed off-plan projects. Under this article, the company must submit to the competent authority financial statements for each of these projects separately, prepared by the certified accountant approved for the project.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 15 of the Saudi Off-Plan Real Estate Sales and Leasing Law
Who prepares the financial statements of an off-plan project?
The certified accountant prepares them, and the developer is bound to submit them to the competent authority.
Are financial statements submitted for each project separately?
Yes. The article provides for submitting financial statements for each licensed real estate project.
More articles on Duties of Developer, Accountant and Consulting Office
- Article 11
The article requires a disbursement document signed by the developer, the consulting office and the certified accountant for spending from the escrow account, and allows emergency disbursement at the competent authority's request.
يكون الصرف من حساب الضمان بناءً على وثيقة صرف يوقعها المطور والمكتب الاستشاري والمحاسب القانوني، وفي الحالات الطارئة يجوز الصرف بطلب من الجهة المختصة، وفقًا لما
- Article 18
The article allows the competent authority to request information and data from the certified accountant and the consulting office, to use whomever it sees fit to audit them, and to request a report on the project's progress.
1- يجوز للجهة المختصة أن تطلب من المحاسب القانوني والمكتب الاستشاري تزويدها بالمعلومات والبيانات التي ترى ضرورة الاطلاع عليها، ويجوز لها أيضًا أن تستعين بمن ترا
- Article 19
The article requires the certified accountant and the consulting office to report violations, requires the competent authority to notify a violator in writing and give a deadline to correct, and to notify the Saudi Central Bank of bank violations.
1- يجب على كل من المحاسب القانوني والمكتب الاستشاري -كل فيما يخصه- إبلاغ الجهة المختصة عن أي مخالفة لأحكام النظام أو اللائحة يطلع عليها بحكم عمله. 2- إذا ثبت لل
- Article 20
The article requires the developer to finish the project on time and compensates the buyer for late delivery, and lets the competent authority deal with a stalled project and suspend it on violation.
1- يلتزم المطور بإنهاء المشروع العقاري في الموعد المحدد لإنجازه. وفي حال التأخر عن تسليم الأرض أو الوحدة العقارية دون سبب خارج عن إرادته؛ فيستحق المشتري تعويضاً
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.