Article 20 of the Saudi Off-Plan Real Estate Sales and Leasing Law

This article provides rules protecting the buyer in case of delay, stalling or violation, and contains three provisions:

(1) Commitment to the deadline and compensation for delay: The developer must finish the project by the date set for its completion. If it is late in delivering the land or the real estate unit without a cause beyond its control, the buyer is entitled to:

• Financial compensation determined in advance if the item sold is developed land.
• Fair market rent if the item sold is a residential unit, that is, the equivalent of the rent of a similar unit.

Compensation is therefore conditional on the delay being without a cause beyond the developer's control.

(2) Emergency circumstance and a stalled project: If an emergency circumstance occurs as a result of which the licensed project is not completed, the competent authority may, in consultation with the certified accountant and the consulting office, take the necessary measures to ensure one of two things: completing the project, or liquidating it and returning the amounts paid to it, as the Implementing Regulations specify.

(3) Violation: If a violation of the Law or the Regulations occurs, the competent authority may take the necessary measures, including suspending the project until the violation is removed.

The third paragraph complements Article 19, which governs notifying the violator and giving a deadline to correct. Article 21 follows to set the committee that hears violations.

To assess whether a delay in a particular case is due to a cause beyond the developer's control, and to calculate the compensation, it is advisable to consult a lawyer who specializes in real estate cases.