Article 4 of the Saudi Off-Plan Real Estate Sales and Leasing Law
المادة 4 من نظام بيع وتأجير مشروعات عقارية على الخارطة
The article sets the competent authority's tasks: supervising real estate projects, licensing and monitoring them, preparing a public database of licensed projects, and preparing the developers registry.
Official text (Arabic)
This article has not been amended since the law was issued.
تتولى الجهة المختصة وفقًا للنظام ما يلي:
1- الإشراف على المشروعات العقارية، بما في ذلك إصدار التراخيص اللازمة لها، ومتابعة تنفيذها، والرقابة والتفتيش عليها. ويجوز للمسؤول إسناد بعض تلك المهمات إلى القطاع الخاص، وفقًا لأحكام النظام واللائحة.
2- إعداد قاعدة بيانات للعموم خاصة بالمشروعات العقارية المرخص لها وفق النظام. وتحدد اللائحة البيانات الواجب تضمينها في قاعدة البيانات.
3- إعداد سجل خاص يسمى (سجل قيد المطورين). وتحدد اللائحة ضوابط وإجراءات القيد.
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 4 explained in plain English
This article shows the supervisory role of the competent authority for applying the Law, which is the authority determined by an order of the Prime Minister as defined in Article 1. It has three main tasks:
- Supervising real estate projects: This includes issuing the necessary licenses for them, following up their execution, and monitoring and inspecting them. The official (the head of the competent authority) may assign some of these tasks to the private sector in accordance with the provisions of the Law and the Regulations.
- Preparing a public database: It covers real estate projects licensed under the Law, meaning it is available to the public. The Implementing Regulations specify the data that must be included in it.
- Preparing the developers registry: This is the register in which the names of qualified, licensed developers are entered, and the Implementing Regulations set the rules and procedures for registration.
This article is linked to Article 3, which bars engaging in off-plan sale and leasing except for a developer registered in this registry, and bars advertising a project before it is licensed. Article 5 then gives the competent authority the power to request a copy of the developer's agreement with the real estate broker.
The benefit of the public database to a buyer or lessee is that it allows them to see the data of licensed projects; the data it contains is specifically left to the Implementing Regulations.
Practical example
Before reserving an apartment off-plan in Dammam, Khalid wanted to make sure the project was licensed. This article requires the competent authority to prepare a public database of real estate projects licensed under the Law, so he can refer to it according to the data specified by the Implementing Regulations.
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 4 of the Saudi Off-Plan Real Estate Sales and Leasing Law
Who supervises off-plan projects?
The competent authority for applying the Law, which is determined by an order of the Prime Minister, and which handles licensing, follow-up, monitoring and inspection.
Is there a public database of licensed projects?
Yes. The article requires the competent authority to prepare a public database of licensed projects, and the Implementing Regulations specify the data it contains.
Can supervision be assigned to the private sector?
The official may assign some supervisory tasks to the private sector in accordance with the provisions of the Law and the Regulations.
More articles on Register of Real Estate Developers
- Article 3
The article bars a developer from off-plan sale and leasing unless registered in the developers registry, and bars advertising or exhibiting a project before it is licensed.
لا يحق لأي مطور عقاري مزاولة نشاط بيع وتأجير مشروعات عقارية على الخارطة إلا إذا كان مقيدًا في سجل قيد المطورين، ولا يحق الإعلان عنها في وسائل الإعلام المحلية أو
- Article 5
The article allows the competent authority to ask a developer who markets the project through a real estate broker for a copy of the agreement concluded with the broker, as the Implementing Regulations specify.
للجهة المختصة أن تطلب من المطور -إذا رغب في تسويق المشروع العقاري من خلال وسيط عقاري- تزويدها بنسخة من الاتفاقية المبرمة مع الوسيط العقاري، وذلك وفقًا لما تحدده
- Article 7
The article allows the competent authority, when needed, to register a natural person in the developers registry and license them for off-plan sale and leasing under rules set by the Implementing Regulations.
للجهة المختصة -في سبيل تحقيق أهداف النظام وعند الاقتضاء- قيد الشخص الطبيعي في سجل قيد المطورين والترخيص له بمزاولة نشاط بيع وتأجير مشروعات عقارية على الخارطة؛ و
- Article 25
The article sets the cases for striking a developer off the developers registry: discretionary for not starting within 6 months, repeated stalling or poor quality, and mandatory on bankruptcy or punishment for a serious violation.
1- للجهة المختصة أن تشطب قيد المطور من سجل قيد المطورين في أي من الحالتين الآتيتين: أ- إذا لم يباشر الأعمال الإنشائية للمشروع العقاري المرخص له بعد انقضاء (ستة)
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.