Commercial Property Purchase And Sale Agreement Template for Saudi Arabia

The Commercial Property Purchase And Sale Agreement is a crucial legal document used in Saudi Arabia for transferring ownership of commercial real estate assets. It is essential for any business transaction involving the acquisition or disposal of commercial property in the Kingdom, whether between domestic parties or involving foreign investors. The agreement must comply with Saudi Arabian law, including Sharia principles, the Real Estate Registration Law, and various regulatory requirements. This document is particularly important given the recent reforms in Saudi real estate laws as part of Vision 2030, which has modernized property transactions while maintaining traditional legal frameworks. The agreement covers all aspects of the property transfer, from initial terms through to completion, including due diligence requirements, regulatory approvals, and post-completion obligations. It's designed to protect both parties' interests while ensuring compliance with local laws and regulations.

1. Parties: Identification of the seller and purchaser, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the transaction, including brief property description and parties' intentions

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

4. Property Description: Detailed description of the property, including exact location, boundaries, and title deed information

5. Purchase Price: Specification of the purchase price, payment terms, and method of payment in compliance with Sharia principles

6. Deposit: Details of the initial deposit, when it's payable, and conditions for retention or return

7. Conditions Precedent: Conditions that must be satisfied before completion, including regulatory approvals and due diligence

8. Due Diligence: Buyer's rights and process for conducting property investigation, including timeframes and access arrangements

9. Seller's Warranties: Warranties regarding property ownership, condition, and compliance with laws

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

11. Completion: Process for closing the transaction, including timing, location, and required documents

12. Post-Completion Obligations: Actions required after completion, including registration and handover procedures

13. Risk and Insurance: Allocation of risk and insurance requirements before and after completion

14. Default and Termination: Consequences of breach and circumstances allowing termination

15. Notices: Process for formal communications between parties

16. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures

17. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability