Off-plan sales in Saudi Arabia: buyer rights and REGA number 199011

Off-plan sales are only for a registered developer and a licensed project, under the supervision of the Real Estate General Authority (REGA), and buyers' payments go into a project escrow account. If delivery is late for a reason within the developer's control, the buyer is owed compensation. REGA's unified number is 199011; report in its «البلاغات» (Complaint) service via Nafath.

Steps

1. Before buying, check that the project is licensed: on REGA's «بيع وتأجير مشروعات عقارية على الخارطة» (Off-Plan Sale and Lease) page, the «المشاريع المرخصة» (Licensed projects) tab lists projects with their licence type and status, such as in progress, not started, completed or cancelled.
2. The Law forbids selling off-plan, advertising it or holding exhibitions for it unless the developer is entered in the Developers' Register and the project is licensed (Article 3 of the Law of Sale and Lease of Off-Plan Real Estate Projects).
3. Payments: according to REGA's FAQ, your payments are transferred to the project's escrow account in line with engineering progress and the payment schedule agreed in the sale contract. The escrow account may be spent only on the licensed project, and its funds may not be seized for the developer's creditors (Article 10).
4. Booking deposit, according to REGA's FAQ: if the developer takes a booking deposit during the project's marketing licence, it may not exceed 5% of the unit's value and must be deposited in the escrow account.
5. You, or someone acting for you, have the right to see the accounting records that concern you and to get copies (Article 17).
6. Late delivery: if the developer is late delivering the unit for a reason within its control, you are owed compensation set in advance for developed land, or the market rent (ujrat al-mithl) for a residential unit (Article 20). REGA's FAQ says the compensation is agreed between the parties and may not be less than the unit's market rent as set by an accredited valuer.
7. If the developer refuses to pay compensation: REGA says you go to the competent courts or to the Saudi Real Estate Arbitration Center, as the signed contract provides.
8. If the unit's area differs from the contract: clause 20, «تعديلات مساحة الوحدة» (Unit area adjustments), of the signed contract applies.
9. Warranties after delivery, according to REGA's FAQ: construction works (foundations, concrete and insulation) 10 years, and mechanical and electrical installations 1 year, from the date the unit is delivered.
10. If the project stalls because of an emergency: the competent authority, in consultation with the project's chartered accountant and consulting office, may take the measures needed to complete the project or wind it up and return the amounts paid (Article 20).
11. Collecting money from buyers without a licence, or taking booking deposits without placing them in the escrow account, is punishable by up to 5 years in prison, a fine of up to 10 million riyals, or both (Article 24).
12. To report a violation: on REGA's website go to «تواصل معنا» (Contact Us), then «البلاغات» (Complaint), and sign in with Nafath; Sunday to Thursday, 8:00 AM to 4:00 PM. For questions, call 199011.