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Property Sharing Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Property Sharing Agreement

"I need a Property Sharing Agreement for a commercial building in Riyadh, to be shared between three corporate entities starting March 2025, with specific provisions for retail space management and cost allocation for common areas."

Document background
The Property Sharing Agreement is essential in Saudi Arabia when multiple parties seek to establish formal arrangements for shared property ownership and usage. This document is particularly relevant in various contexts, including family property arrangements, commercial real estate partnerships, and joint venture developments. It must comply with Saudi Arabian real estate laws, Sharia principles, and local municipal regulations. The agreement typically addresses key aspects such as ownership percentages, management rights, cost sharing, maintenance responsibilities, and dispute resolution mechanisms. It's commonly used in both residential and commercial contexts, requiring careful consideration of Saudi Arabia's property registration requirements, foreign ownership restrictions (if applicable), and Islamic inheritance principles. The document serves as a crucial tool for preventing future disputes by clearly defining all parties' rights and obligations within the Saudi legal framework.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, addresses, and national ID numbers/CR numbers

2. Background: Context of the agreement, including property details and purpose of the sharing arrangement

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology

4. Property Details: Comprehensive description of the shared property, including title deed numbers, location, and dimensions

5. Ownership Structure: Details of ownership shares and rights of each party

6. Management and Administration: Rules for property management, decision-making processes, and voting rights

7. Financial Obligations: Cost sharing arrangements, including maintenance, utilities, taxes, and other expenses

8. Usage Rights and Restrictions: Terms governing how the property can be used, including access rights and restrictions

9. Transfer of Rights: Procedures and conditions for transferring ownership shares

10. Insurance and Risk: Requirements for property insurance and allocation of risks

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Dispute Resolution: Procedures for resolving disputes in accordance with Saudi law

13. Governing Law: Confirmation of Saudi law and Sharia principles as governing law

14. Notices: Methods and requirements for formal communications between parties

Optional Sections

1. Property Manager: Required when parties agree to appoint a professional property manager, defining their role and responsibilities

2. Commercial Use Provisions: Required when the property will be used for commercial purposes, including specific commercial terms

3. Foreign Ownership Compliance: Required when any party is a non-Saudi national, addressing compliance with foreign ownership regulations

4. Mortgage and Financing: Required when the property is or may be subject to mortgage or financing arrangements

5. Inheritance Provisions: Required when parties wish to address Islamic inheritance principles specifically

6. Development Rights: Required when parties anticipate future development or major modifications to the property

7. Right of First Refusal: Optional clause giving existing parties priority rights to purchase others' shares

Suggested Schedules

1. Property Title Deed: Copy of official property documentation and registration details

2. Floor Plans and Maps: Detailed plans showing property layout and boundaries

3. Ownership Schedule: Detailed breakdown of ownership percentages and specific areas assigned to each party

4. Cost Allocation Schedule: Detailed breakdown of how various costs and expenses are to be shared

5. Management Procedures: Detailed procedures for property management and decision-making

6. Maintenance Schedule: Schedule of regular maintenance responsibilities and cost sharing

7. Usage Rules and Regulations: Detailed rules governing the day-to-day use of the property

8. Registration Documents: Copies of all relevant registration certificates and permits

Authors

Alex Denne

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

Relevant legal definitions






























































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Relevant Industries

Real Estate

Commercial Property

Residential Property

Hospitality

Retail

Industrial

Mixed-Use Development

Religious Endowments

Family Business

Investment Management

Relevant Teams

Legal

Real Estate

Facilities Management

Asset Management

Property Management

Compliance

Risk Management

Operations

Business Development

Investment

Corporate Affairs

Documentation

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Corporate Lawyer

Real Estate Director

Facilities Manager

Asset Manager

Investment Manager

Property Development Manager

Compliance Officer

Risk Manager

Operations Director

Chief Legal Officer

Real Estate Partner

Business Development Manager

Family Office Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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