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The Owner Finance Contract serves as a crucial alternative to traditional mortgage financing in Saudi Arabia, particularly relevant in cases where conventional bank financing is either unavailable or undesirable. This document type has gained increased importance with Saudi Arabia's Vision 2030 initiatives and reforms in real estate financing. The contract must strictly comply with both Saudi civil law and Sharia principles, making it a unique instrument that combines property sale and financing elements. It's commonly used in both residential and commercial property transactions, providing a structured framework for seller-financed property purchases. The Owner Finance Contract includes detailed provisions for payment schedules, property transfer mechanisms, security arrangements, and default remedies, all while ensuring compliance with Islamic financial principles that prohibit conventional interest-based transactions. This document type is particularly valuable in facilitating property transactions in the Saudi market where traditional banking solutions may not be suitable or available.

1. Parties: Identification of the property owner (financier) and the purchaser, including full legal names and contact details

2. Background: Context of the transaction, including property owner's title and purchaser's intent to acquire the property through owner financing

3. Definitions: Key terms used throughout the agreement, including Property, Purchase Price, Payment Schedule, and other relevant terminology

4. Property Description: Detailed legal description of the property being sold, including location, boundaries, and registration details

5. Purchase Price and Payment Terms: Total purchase price, down payment, and structure of remaining payments in compliance with Sharia principles

6. Transfer of Title: Conditions and process for transferring property title, including interim and final transfer requirements

7. Security Arrangements: Legal mechanisms to secure the purchaser's payment obligations

8. Purchaser's Covenants: Obligations of the purchaser including property maintenance, insurance, and payment commitments

9. Owner's Representations and Warranties: Confirmations regarding property ownership, condition, and authority to sell

10. Default and Remedies: Consequences of payment default and other breaches, including recovery procedures

11. Property Insurance and Taxes: Requirements for property insurance and responsibility for various taxes and fees

12. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes

13. Notices: Process and requirements for formal communications between parties

14. Execution: Signature blocks and attestation requirements under Saudi law