Article 2 of the Saudi Timesharing in Tourist Real Estate Units Law
المادة 2 من نظام المشاركة بالوقت فى الوحدات العقارية السياحية
The article prohibits carrying on the timesharing activity or marketing it before obtaining a license, and requires advertisements to include the license number and a statement of whether and where the information document can be obtained.
Official text after amendments (Arabic)
Compiled from the original text and every officially published amendment; the amendments are shown in full below for comparison.
1- لا تجوز مزاولة نشاط المشاركة بالوقت أو التسويق له قبل الحصول على ترخيص من الهيئة، وذلك وفقاً للشروط التي تحددها اللائحة.
2 - لا يجوز الإعلان عن نشاط المشاركة بالوقت أو التسويق له ما لم يتضمن ذلك الإعلان أو التسويق ما يأتي :
أ ) رقم ترخيص الهيئة للجهة المعلنة.
ب ) إمكان الحصول على المستند المشار إليه في الفقرة (1) من (المادة الثالثة) من هذا النظام، والمكان الذي يمكن الحصول عليه منه.
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 2 explained in plain English
This article sets two basic rules for anyone working in the timesharing activity:
First - prior license (paragraph 1): it is not permitted to carry on the timesharing activity or market it before obtaining a license from the Authority, under the conditions the Implementing Regulations set. The prohibition covers marketing itself, not only selling. This paragraph was amended to the text shown.
Second - content of the advertisement (paragraph 2): it is not permitted to advertise the activity or market it unless the advertisement includes:
- The Authority's license number of the advertising entity.
- A statement of whether the document referred to in paragraph (1) of Article 3 can be obtained, and the place from which it can be obtained.
The document meant, according to Article 3, is the one the seller provides to anyone who requests information about the property, containing complete and accurate information about it according to the details set in the Implementing Regulations, and all of this information is considered an integral part of the timesharing contract.
Note that the text mentions "the Authority", whose definition was amended in Article 1 to become (the Ministry: the Ministry of Tourism). This article also benefits the buyer, since an advertisement that does not carry a license number does not meet what the Law requires. Anyone who needs an opinion on the status of a particular activity may consult a lawyer specialized in real estate matters.
Practical example
A company in Jeddah wants to advertise on social media the sale of annual weeks at a resort on the Red Sea. It may not market before obtaining the license, and its advertisement must include the license number and a statement that the property information document is available and the place from which it can be obtained.
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 2 of the Saudi Timesharing in Tourist Real Estate Units Law
May timesharing be marketed before obtaining a license?
No. The article prohibits carrying on the activity or marketing it before obtaining a license under the conditions the Implementing Regulations set.
What must a timesharing advertisement include?
The advertising entity's license number, and a statement of whether the property information document referred to in Article 3 can be obtained and the place from which it can be obtained.
Amendment history
Amendment
Official amendment text (Arabic)
الفقرة ( 1 ) من المادة الثانية عُدلت الفقرة ليكون نصها:
"1- لا تجوز مزاولة نشاط المشاركة بالوقت أو التسويق له قبل الحصول على ترخيص من الهيئة، وذلك وفقاً للشروط التي تحددها اللائحة".
Original text before the amendments (Arabic)
1 - لا يجوز مزاولة نشاط المشاركة بالوقت قبل الحصول على ترخيص من الهيئة، بعد توافر الشروط وتقديم الضمانات المحددة في اللائحة.
2 - لا يجوز الإعلان عن نشاط المشاركة بالوقت أو التسويق له ما لم يتضمن ذلك الإعلان أو التسويق ما يأتي :
أ ) رقم ترخيص الهيئة للجهة المعلنة.
ب ) إمكان الحصول على المستند المشار إليه في الفقرة (1) من (المادة الثالثة) من هذا النظام، والمكان الذي يمكن الحصول عليه منه.
Articles this article refers to
More articles on Licensing Time-Share Activity and Marketing It
- Article 1
The article defines the key terms of the Timesharing Law, such as tourist real estate units, timesharing and its contract, the property, the seller, the buyer and credit.
يقصد بالألفاظ والعبارات الآتية– أينما وردت في هذا النظام– المعاني المبينة أمامها ما لم يقتض السياق خلاف ذلك : الوحدات العقارية السياحية: الفنادق والشقق المفروشة
- Article 4Amended (1435 AH)
The article sets the scope of the Law over timesharing contracts, requires the contract to be in writing in Arabic with the details in the Regulations, and bars non-Saudis from the activity and from acquiring rights in Makkah and Madinah other than by inheritance.
1- تطبق الأحكام الواردة في هذا النظام على عقود المشاركة بالوقت التي تبرم في المملكة العربية السعودية. كما تطبق على عقود المشاركة بالوقت المبرمة خارج المملكة الع
- Article 12
The article contains general provisions: the timesharing activity register, application of the general rules of contracts where there is no provision, a grace period to regularize status, the fee for services, and issuing the Regulations and the Law taking effect.
1- تنشئ الهيئة سجلًا لنشاط المشاركة بالوقت، يشتمل على بيانات تفصيلية عن عقود المشاركة بالوقت، والبائعين، والمشترين، والعقارات الواقعة في المملكة المخصصة لهذا ال
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.