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The Rent To Own Contract serves as a crucial instrument in Saudi Arabian real estate transactions, providing a Shariah-compliant alternative to conventional mortgage arrangements. This document is particularly useful when buyers require a gradual approach to property ownership, allowing them to occupy and use the property while building equity through rental payments. The agreement must comply with Saudi Arabia's Real Estate Finance Law and SAMA regulations, while adhering to Islamic finance principles that prohibit conventional interest-based transactions. It includes comprehensive details about the property, payment terms, maintenance responsibilities, and the mechanism for transferring ownership, making it suitable for both residential and commercial properties. The document is structured to protect both parties' interests while ensuring transparency in the transition from rental to ownership.

1. Parties: Identification of the Owner/Lessor and the Tenant/Prospective Purchaser, including full legal names, addresses, and official identification numbers

2. Background: Context of the agreement, including property details and the parties' intention to enter into a rent-to-own arrangement compliant with Shariah principles

3. Definitions: Key terms used throughout the agreement, including Islamic finance terminology relevant to the transaction

4. Property Description: Detailed description of the property, including location, size, specifications, and any existing encumbrances

5. Rental Terms: Terms of the rental phase, including rental period, payment amounts, and payment schedule

6. Purchase Option: Details of the purchase option, including the final purchase price, credit for rental payments, and mechanism for exercising the option

7. Payment Terms: Comprehensive payment structure, including rent payments, purchase price, and how rental payments are credited toward the purchase

8. Maintenance and Repairs: Responsibilities for property maintenance and repairs during the rental phase

9. Insurance and Taxes: Requirements for property insurance and responsibility for taxes during both rental and ownership phases

10. Default and Termination: Conditions constituting default, remedies, and termination procedures

11. Transfer of Ownership: Process and conditions for the transfer of property ownership upon exercise of the purchase option

12. Representations and Warranties: Statements of fact and promises made by both parties regarding their capacity and the property

13. Governing Law and Jurisdiction: Specification of Saudi law and Shariah principles as governing law and relevant jurisdiction