Article 27 of the Saudi Real Estate Investment Schemes Law

This article sets a precondition for selling a real estate investment scheme's assets, namely valuation:

• A sale is not permitted except after the assets have been valued.
• The valuation must be carried out by accredited valuers.
• And it must be done in accordance with the Accredited Valuers Law.
• And in accordance with the procedures set by the Implementing Regulations.

The article provides an express consequence for breaching this: any act that breaches what the article provides is void. A sale made without the required valuation, or in breach of its conditions, is void by the text of the article.

The rationale is clear to the shareholder: an independent valuation reduces the risk of the scheme's assets being sold for a price that does not reflect their value, whether through negligence or for the benefit of a particular party. This fits with Article 28, which sets out the methods of selling a scheme's assets: public auction, direct sale of the whole scheme or part of it, or any other method set by the Implementing Regulations; on the face of the text, valuation comes before the sale whichever method is used.

This article follows Article 26, which allows assembly meetings and voting by modern technology.

If a shareholder learns that one of the scheme's assets has been sold without an accredited valuation, they can consult a lawyer specializing in real estate cases to learn how to invoke voidness.