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A Real Estate Contract is a binding legal agreement that transfers property ownership in Saudi Arabia. It spells out the exact terms of a property sale, including the purchase price, payment schedule, and detailed descriptions of the land or building being sold. Under the Kingdom's Real Estate Law, these contracts must be properly notarized and registered with local authorities to be valid.

The contract protects both buyers and sellers by clearly stating each party's rights and obligations. It covers essential elements like property handover dates, condition requirements, and any special terms about utilities or improvements. In line with Shariah principles, the agreement must be free from uncertainty (gharar) and include all material facts about the property.

Use a Real Estate Contract any time you're buying, selling, or transferring property ownership in Saudi Arabia. This includes purchasing residential homes, commercial buildings, undeveloped land, or investment properties. The contract becomes essential when you've agreed on a price and basic terms with the other party, but before any money changes hands.

Sign the contract before making any significant property-related payments or starting renovation work. Key moments include: finalizing purchase negotiations, documenting seller financing arrangements, or structuring complex commercial deals. Remember that Saudi law requires official registration and notarization of these contracts through designated government offices to make the transfer legally binding.

• Residential Real Estate Purchase Agreement: For buying and selling homes, covering standard living spaces and personal property terms
• Commercial Real Estate Purchase Agreement: Tailored for business properties, with specialized terms for zoning and commercial use
• Wholesale Real Estate Contract: Used for bulk property deals or investor-to-investor transactions
• Property Sale Agreement: A simplified version for straightforward property transfers
• Buyer Seller Agreement: Focuses on basic terms and conditions for standard property transactions

• Property Owners/Sellers: Individuals or companies selling real estate must provide accurate property details and comply with Saudi disclosure requirements
• Buyers: Both local citizens and qualified foreign investors who plan to purchase property rights within the Kingdom
• Real Estate Brokers: Licensed professionals who facilitate transactions and help prepare contract documentation
• Legal Representatives: Lawyers who review and customize Real Estate Contracts to protect their clients' interests
• Government Notaries: Official authenticators who must validate and register all property transfers under Saudi law
• Banks/Financiers: Institutions providing mortgage financing who review and may be party to the contract terms

• Property Details: Gather complete legal description, title deed number, and property boundaries from official documents
• Party Information: Collect full legal names, ID numbers, and contact details for all buyers and sellers
• Price Structure: Document the agreed purchase price, payment schedule, and any financing arrangements
• Property Condition: List existing defects, included fixtures, and recent modifications
• Compliance Check: Verify zoning permits and ensure property use aligns with local regulations
• Documentation: Prepare copies of title deeds, municipal approvals, and tax clearance certificates
• Timeline Details: Set clear dates for deposit payment, final settlement, and property handover

• Property Identification: Detailed legal description, exact location, and title deed number
• Party Details: Full names, national IDs, and legal capacity of buyers and sellers
• Purchase Terms: Clear statement of price, payment method, and transfer timeline
• Shariah Compliance: Explicit confirmation that the transaction follows Islamic finance principles
• Property Condition: Current state, included fixtures, and any known defects
• Transfer Process: Steps for registration with local authorities and title transfer
• Default Provisions: Consequences for breach and dispute resolution procedures
• Signatures: Space for parties' signatures, witnesses, and official notarization

A Real Estate Contract differs significantly from a Contract to Sell in several important ways. While both documents relate to property transactions, their timing, legal effect, and purpose vary considerably under Saudi law.

• Transfer of Ownership: A Real Estate Contract immediately transfers property rights upon completion, while a Contract to Sell only creates a promise to transfer ownership at a future date
• Legal Requirements: Real Estate Contracts must be notarized and registered with authorities; Contracts to Sell don't require immediate registration
• Payment Structure: Real Estate Contracts typically involve immediate or structured payments, while Contracts to Sell often use installment plans
• Risk Transfer: Real Estate Contracts transfer property risk to the buyer immediately; Contracts to Sell keep risk with the seller until final transfer
• Enforcement Options: Real Estate Contracts offer stronger immediate legal remedies compared to Contracts to Sell's future performance obligations