Kingdom issues technical, financial qualification rules for off-plan sales

A Sample Scheme

The Saudi official gazette published on Friday, Oct. 29, the technical and financial qualification rules for off-plan sales, effective from the publication date.

These rules aim to increase reliability of the activity and regulation of the technical and financial qualification provisions for real estate developers. They also motivate real estate developers to invest in the activity.

As per Article 3, a qualification certificate should be obtained in order to apply for an off-plan sale or lease license.

According to the regulations, the committee may grant direct qualification to the companies listed in the capital market and engaged in real estate development, off-plan sales or construction, after submitting the application and paying the financial consideration.

The qualification certificate is granted to the applicant who receives no less than 30% of the financial and technical capabilities, and 35% of the total.