In brief
Regulates off-plan sales and leases: developer registration, project licensing, the escrow account holding buyers' money, the duties of developers, auditors and consultants, and penalties.
Summary of the law
Key points
- The authority decides a licence application within 30 days of receiving complete documents (Article 6).
- Pay any off-plan reservation money only into the licensed project's escrow account; taking it outside the account is an offence.
Penalties
- Up to five years' imprisonment or up to SAR 10 million, or both, for selling or collecting money without a licence, advertising a fictitious project, misappropriating project funds, not depositing reservation money in escrow, and for auditors or consultants who certify false information (Article 24).
- Decisions of the violations committee may be challenged before the Administrative Court within 60 days of notice (Article 21).
A plain-language summary prepared by Al-Bayan Al-Wadih Law Firm, focused on the violations and problems that come up most in daily life. It is not a substitute for the official text or for legal advice.
What it covers
- Developer registration and project licence
- Escrow account
- Buyers' and tenants' rights
- Violations and offences
Timeline
- Issued: Royal Decree M/44 · 10/3/1445H
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .