Law of Timesharing in Tourist Real Estate Units

Purpose and scope

• Regulates timeshare in tourist real estate units; it applies to contracts made in the Kingdom and to those made abroad if the property is in the Kingdom (Article 4).

Key rules, rights and obligations

• The activity may not be carried on before obtaining a licence from the authority and providing guarantees (Article 2 as amended).
• The seller must provide a document with full and accurate information on the property, approved by the authority before advertising, report any change, and maintain the property for the contract term (Article 3).
• The contract must be in writing and in Arabic, and the Arabic version prevails (Article 4).
• Non-Saudis may not carry on or market timeshare, or acquire a timeshare right except by inheritance, in Makkah and Madinah (Article 4 as amended).
• Any waiver by the buyer of rights under the law, or release of the seller from its duties, is void (Article 8).

Violations, penalties and common problems

• Operating without a licence: a fine of up to five hundred thousand riyals (Article 11); other violations carry graded fines with possible suspension or cancellation of the licence.
• Breaching the Makkah and Madinah restriction: a heavier fine plus surrender of any gains (Article 11 as amended).
• No advance payment may be required before the withdrawal period ends (Article 6).

Procedures and key deadlines

• The buyer may withdraw without giving a reason within ten days of signing, and may cancel within three months if the contract lacks the required information (Article 5).
• Any linked credit agreement is cancelled automatically on withdrawal, at no cost to the buyer (Article 7).
• Decisions of the violations committee may be challenged before the Board of Grievances within sixty days of notification (Article 10).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.