The For Sale By Owner Property Contract is a crucial legal instrument in Saudi Arabia for property owners who choose to sell their property directly without full real estate agency services. This document is designed to comply with both Islamic Sharia principles and Saudi civil law requirements, including the Real Estate Registration Law and related regulations. It provides a comprehensive framework for documenting property sales, including detailed property descriptions, payment terms, warranties, and transfer procedures. The contract is particularly relevant in today's market where many property owners prefer direct transactions to reduce costs while maintaining legal compliance. It includes all necessary provisions to protect both parties' interests, ensure proper property transfer registration, and address specific Saudi Arabian regulatory requirements such as municipality approvals and, where applicable, foreign ownership restrictions.
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1. Parties: Identification of the seller and buyer with full legal names, national ID numbers, and contact details as required by Saudi law
2. Background: Context of the sale, including brief property description and seller's confirmation of ownership rights
3. Definitions: Key terms used throughout the agreement, including property-specific terminology and legal concepts
4. Property Details: Comprehensive description of the property, including title deed number, location, boundaries, and total area
5. Purchase Price: Agreed purchase price, payment terms, and method of payment in compliance with Sharia principles
6. Payment Schedule: Detailed breakdown of payment installations, dates, and payment verification process
7. Property Transfer: Process and timing of transferring property ownership through official channels
8. Seller's Warranties: Seller's guarantees regarding property ownership, absence of disputes, and property condition
9. Buyer's Obligations: Buyer's commitments regarding payment, documentation, and compliance with transfer requirements
10. Property Handover: Conditions and process for physical property handover, including utilities transfer
11. Default and Remedies: Consequences and remedies for breach of contract by either party
12. Governing Law: Confirmation of Saudi law application and Sharia compliance
13. Notices: Process for formal communications between parties
14. Execution: Signature requirements and execution process
1. Mortgage Details: Required if property has existing mortgage or financing arrangements
2. Tenant Rights: Required if property is currently leased to tenants
3. Property Management: Required for properties within managed communities or compounds
4. Foreign Ownership Compliance: Required when buyer is non-Saudi, addressing specific regulatory requirements
5. Furniture and Fixtures: Required if sale includes specified furniture or fixed installations
6. Development Obligations: Required for undeveloped or partially developed properties
7. Third Party Rights: Required if there are any easements, rights of way, or other third-party interests
8. Zakat and Tax Provisions: Required for commercial properties or when specific tax obligations exist
1. Property Title Deed: Copy of official property ownership documentation
2. Property Plans: Official plans showing property boundaries and building layouts
3. Inventory List: Detailed list of included furniture and fixtures if applicable
4. Payment Schedule: Detailed breakdown of payment installments and due dates
5. Property Inspection Report: Technical report on property condition and any identified issues
6. Municipality Certificates: Relevant municipal approvals and certificates
7. Utility Accounts: Details of current utility accounts and transfer process
8. Outstanding Dues Certificate: Confirmation of no outstanding fees or service charges
Authors
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Banking & Finance
Legal Services
Property Development
Infrastructure
Hospitality
Retail
Commercial Property
Residential Property
Investment & Asset Management
Relevant Teams
Legal
Real Estate
Property Management
Asset Management
Compliance
Finance
Investment
Operations
Administration
Risk Management
Relevant Roles
Property Owner
Real Estate Manager
Legal Counsel
Property Developer
Investment Manager
Facility Manager
Corporate Real Estate Manager
Asset Manager
Property Consultant
Compliance Officer
Real Estate Analyst
Investment Director
Property Portfolio Manager
Real Estate Administrator
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