Affidavit Of Consideration For Use By Seller Template for Saudi Arabia

When selling property or assets in Saudi Arabia, you need to provide sworn testimony about the true consideration received in your transaction. The Affidavit of Consideration for Use by Seller is a legally binding document that declares the actual amount paid for your property or asset, ensuring transparency and compliance with Saudi Arabian law.

When do you need this document?

You must prepare this affidavit whenever Saudi authorities require verification of sale prices or transaction values. This includes property transfers where municipalities need to verify consideration for tax assessment purposes, commercial asset sales requiring documentation for the Ministry of Commerce, and transactions involving government entities that mandate sworn statements about consideration. The document is also essential when dealing with inheritance sales, partnership dissolutions, or any transaction where Islamic finance principles require clear documentation of actual consideration exchanged.

Key legal considerations

Your affidavit must contain complete and accurate information about the consideration received, as false statements constitute perjury under Saudi law. The document requires detailed identification of all parties, precise property or asset descriptions, and explicit declaration of the full consideration amount including any non-monetary benefits. You must ensure the transaction complies with Sharia principles, meaning the consideration must be lawful and clearly defined. The affidavit becomes part of the permanent legal record, so any misrepresentation can result in criminal penalties and transaction nullification. Consider that Saudi courts may scrutinize the stated consideration against market values to prevent tax evasion or money laundering.

Legal requirements in Saudi Arabia

Under the Commercial Transactions Law and Sharia court rules, your affidavit must be notarized by a licensed notary public and may require additional authentication by Ministry of Justice representatives. The document must be prepared in Arabic or include certified translations if originally in another language. You need proper identification documents, including your Saudi ID or residence permit, and comprehensive transaction documentation. The Basic Law of Governance requires all legal documents to comply with Islamic principles, meaning your consideration statement must reflect genuine value exchange without prohibited elements like interest or speculation. Depending on the transaction type and value, you may need to present the affidavit to commercial courts, municipalities, or the Saudi Arabian General Investment Authority for final approval and registration.