Article 38 of the Saudi Real Estate Investment Schemes Law
المادة 38 من نظام المساهمات العقارية · الفصل السابع: أحكام ختامية
The article provides that the Law is published in the Official Gazette and takes effect 120 days after its publication, and that it repeals every provision that conflicts with it.
Official text (Arabic)
This article has not been amended since the law was issued.
ينشر النظام في الجريدة الرسمية، ويعمل به بعد (مائة وعشرين) يوماً من تاريخ نشره، ويلغي كل ما يتعارض معه من أحكام.
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 38 explained in plain English
This article specifies when the Law starts to apply and its effect on earlier provisions, and contains three provisions:
- Publication: the Law is published in the Official Gazette.
- Taking effect: the Law takes effect 120 days after the date of its publication; there is an interval between publication and application.
- Repeal of conflicting provisions: the Law repeals every provision that conflicts with it.
The interval between publication and application gives those concerned with the Law time to prepare for its provisions before they take effect.
The article is linked to Article 37, which requires the Authority's board to issue the Implementing Regulations in agreement with the Capital Market Authority within 120 days of the date the Law was issued, and provides that the Implementing Regulations take effect from the date the Law takes effect. The Law and its Implementing Regulations therefore begin to apply at the same time.
As for the repeal of what conflicts with the Law, the article does not name particular provisions; it sets a general rule: any earlier provision that conflicts with this Law is not applied. Whether a given provision conflicts needs to be examined in each case.
The article does not state the date of publication itself. Anyone with an existing scheme who wants to know the effect of the Law on it can consult a lawyer specializing in real estate cases.
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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Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 38 of the Saudi Real Estate Investment Schemes Law
When does the Real Estate Investment Schemes Law take effect?
It takes effect 120 days after the date of its publication in the Official Gazette.
Where is the Real Estate Investment Schemes Law published?
It is published in the Official Gazette.
What happens to earlier provisions that conflict with the Law?
The Law repeals every provision that conflicts with it.
More articles on Definitions and Powers of the Real Estate Authority
- Article 1
The article defines the Law's key terms, such as real estate investment scheme, participant, licensee, scheme manager, escrow account and register of participants.
لغرض تطبيق هذا النظام، يقصد بالعبارات والألفاظ الآتية -أينما وردت فيه- المعاني المبينة أمام كل منها، ما لم يقتض السياق غير ذلك: النظام: نظام المساهمات العقارية.
- Article 2
The article states the Law's objectives: regulating real estate investment scheme activity, raising its level of transparency and disclosure, and protecting the rights of all parties to the scheme.
يهدف النظام إلى تنظيم نشاط المساهمات العقارية، وإلى رفع مستوى الشفافية والإفصاح فيه، وإلى حماية حقوق جميع أطراف المساهمة العقارية.
- Article 3
The article makes the General Authority for Real Estate the regulator of real estate investment schemes and lists its powers, from licensing, classification and qualification conditions to fee-basis setting and oversight.
دون إخلال باختصاصات الجهات الحكومية الأخرى، تتولى الهيئة تنظيم نشاط المساهمات العقارية وفقاً لما يحدده النظام واللائحة، ولها على وجه خاص ما يأتي: 1- إصدار الترخ
- Article 36
The article gives the Capital Market Authority, in agreement with the Real Estate General Authority, the regulation of raising funds for the purpose of offering a real estate investment scheme, without prejudice to the Authority's powers.
دون إخلال باختصاصات الهيئة، تنظم هيئة السوق المالية بالاتفاق مع الهيئة ما يتعلق بجمع الأموال لغرض طرح المساهمة العقارية.
- Article 37
The article requires the Authority's board to issue the Implementing Regulations in agreement with the Capital Market Authority within 120 days of the Law's issuance, with effect from the date the Law takes effect.
يصدر المجلس اللائحة بالاتفاق مع هيئة السوق المالية، وذلك خلال (مائة وعشرين) يوماً من تاريخ صدور النظام، ويعمل بها من تاريخ العمل به.
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.