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Residential Sales Contract for Saudi Arabia

Residential Sales Contract Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law and Sharia principles, designed for the sale and purchase of residential property within the Kingdom of Saudi Arabia. This document establishes the terms and conditions of the property transfer, including purchase price, payment terms, warranties, and completion requirements. It incorporates specific provisions required under Saudi real estate regulations, ensures compliance with local municipality requirements, and includes necessary provisions for property registration with relevant authorities.

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Residential Sales Contract

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What is a Residential Sales Contract?

The Residential Sales Contract is a fundamental legal document used in Saudi Arabia for transferring ownership of residential properties between parties. It serves as the primary agreement documenting the terms and conditions of property sales transactions within the Kingdom, ensuring compliance with both civil law requirements and Sharia principles. This document is essential for any residential property transaction and must incorporate specific provisions required by Saudi real estate regulations, including those related to property registration, foreign ownership restrictions (if applicable), and municipality requirements. The contract typically includes detailed property descriptions, payment terms, warranties, and completion mechanisms, while also addressing local regulatory requirements such as the Wafi program for off-plan sales when applicable.

What sections should be included in a Residential Sales Contract?

1. Parties: Identification of the seller and buyer with full legal names, addresses, and national ID/commercial registration numbers

2. Background: Brief context of the sale and confirmation of the seller's ownership and authority to sell

3. Definitions: Key terms used throughout the agreement including Property, Completion Date, Purchase Price, etc.

4. Sale and Purchase: Core agreement to sell and purchase the property, including the basic commercial terms

5. Property Description: Detailed description of the property including title deed number, location, size, and boundaries

6. Purchase Price: Amount, currency, and payment terms including deposit and installment schedule if applicable

7. Completion Requirements: Conditions that must be satisfied before completion, including documentation and regulatory requirements

8. Completion Mechanics: Process for transferring title, payment, and handover of the property

9. Seller's Warranties: Warranties regarding ownership, absence of encumbrances, and property condition

10. Buyer's Warranties: Warranties regarding capacity to purchase and source of funds

11. Default and Termination: Consequences of breach and termination rights

12. Notices: Process for formal communications between parties

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution process

What sections are optional to include in a Residential Sales Contract?

1. Broker Provisions: Required if a broker is involved in the transaction, detailing broker's role and commission

2. Mortgage Contingency: Include if the purchase is contingent on the buyer obtaining financing

3. Property Inspection: Include if there will be a pre-completion inspection process

4. Utilities Transfer: Include if there are specific arrangements for transferring utility accounts

5. Furniture and Fixtures: Include if specific items are included/excluded from the sale

6. Post-Completion Obligations: Include if there are specific obligations after completion (e.g., maintenance agreements)

7. Foreign Ownership: Required if the buyer is non-Saudi, including necessary permits and approvals

8. VAT Provisions: Required if the transaction is subject to VAT

9. Force Majeure: Optional clause dealing with unforeseen circumstances preventing completion

What schedules should be included in a Residential Sales Contract?

1. Property Schedule: Detailed property specifications, plans, and boundaries

2. Title Documents: Copies of title deed and other ownership documents

3. Payment Schedule: Detailed breakdown of payment terms and installments if applicable

4. Property Condition Report: Current condition of the property and any known defects

5. Included Items: List of fixtures, fittings, and other items included in the sale

6. Required Approvals: List of regulatory approvals and permits required for completion

7. Form of Transfer Documents: Templates of documents required for property transfer

8. Completion Checklist: List of items required from each party for completion

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions

































Clauses


































Relevant Industries

Real Estate

Banking & Finance

Legal Services

Property Development

Construction

Insurance

Property Management

Professional Services

Consulting

Public Sector

Relevant Teams

Legal

Real Estate

Compliance

Sales

Operations

Risk Management

Property Development

Contract Administration

Customer Relations

Documentation

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Legal Counsel

Compliance Officer

Property Developer

Sales Manager

Contract Administrator

Real Estate Operations Manager

Title Officer

Risk Manager

Legal Director

Property Consultant

Conveyancing Manager

Real Estate Transaction Coordinator

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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