New real estate law to boost sale, lease of off-plan projects: REGA

Logo of The Real Estate General Authority (REGA)

The Real Estate General Authority (REGA) said that the new law on selling and leasing off-plan real estate projects contributes to a clear knowledge of rights, as it allows the buyer to quickly own or lease the property and creates a promising market that attracts investments.

Furthermore, the law took into account several aspects that seek to accelerate the ownership, allowing patrons to benefit from the options offered, in terms of property type—residential, commercial, tourism, industrial or others—in accordance with the objectives of Vision 2030, it added.

The authority indicated that the new law includes provisions that regulate off-plan sale and leasing activity in a way that achieves more efficiency of developers.

In order to facilitate procedures, the law made it possible for a natural person to register with the developer and obtain license to sell or lease off-plan real estate projects. Meanwhile, it obligates the developer to begin construction on the project within six months from the date of obtaining the license.

The law also amends the period to decide on applications by the competent authority within 30 days from the date of completing the required documents. If this period elapses without a decision, the application is considered approved. If the competent authority rejects the application, the decision must have justifications.

The Saudi Cabinet, chaired by King Salman bin Abdulaziz Al Saud, approved on Sept. 19, a law on selling and leasing off-plan real estate projects, according to data available with Argaam.