Commercial Property Purchase Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Property Purchase Contract

"I need a Commercial Property Purchase Contract for acquiring a 5,000 square meter industrial warehouse in Riyadh Industrial City, Saudi Arabia, with completion scheduled for March 2025, including specific provisions for existing tenant transfer and environmental compliance requirements."

Document background
The Commercial Property Purchase Contract serves as the primary legal instrument for acquiring commercial real estate in Saudi Arabia. This document is essential when any business entity seeks to purchase commercial property within the Kingdom, whether for office space, retail operations, industrial use, or other commercial purposes. It must comply with Saudi Arabian law, including Shariah principles, the Real Estate Registration Law, and various commercial regulations. The contract typically includes comprehensive details about the property, payment terms, warranties, and completion requirements, while ensuring all necessary regulatory approvals and registration procedures are addressed. It's particularly important that the document accounts for specific Saudi Arabian requirements such as property registration with local authorities, compliance with municipality regulations, and adherence to foreign ownership restrictions where applicable.
Suggested Sections

1. Parties: Identification of the seller and purchaser, including full legal names, addresses, and commercial registration details

2. Background: Context of the transaction and confirmation that the property is legally owned by the seller and eligible for sale

3. Definitions: Key terms used throughout the agreement, including property-specific terminology and legal concepts

4. Sale and Purchase: Core terms of the transaction, including clear identification of the property and agreement to sell and purchase

5. Purchase Price: Detailed breakdown of the purchase price, payment terms, and method of payment

6. Completion: Process and requirements for completing the transaction, including timing and location

7. Property Title and Registration: Provisions regarding transfer of title and registration with relevant authorities

8. Seller's Warranties: Warranties regarding ownership, authority to sell, and property condition

9. Due Diligence: Buyer's rights and process for property inspection and document verification

10. Compliance with Laws: Confirmation of compliance with Shariah principles and Saudi regulations

11. Handover: Terms and process for physical handover of the property

12. Taxes and Fees: Allocation of responsibility for various taxes, registration fees, and other costs

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

Optional Sections

1. Financing Arrangements: Required if the purchase involves Islamic financing or mortgage arrangements

2. Foreign Ownership Provisions: Required if the purchaser is a foreign entity, addressing specific regulatory requirements

3. Conditions Precedent: Needed if completion is subject to specific conditions being met

4. Tenant Provisions: Required if the property is sold with existing tenants and lease agreements

5. Development Obligations: Needed if the property requires specific development or modification post-purchase

6. Environmental Provisions: Required for properties with potential environmental concerns or specific requirements

7. Service Contracts: Needed if there are ongoing service contracts that need to be transferred or terminated

Suggested Schedules

1. Property Description: Detailed description of the property, including boundaries, area, and official title details

2. Property Plan: Official plans and drawings of the property and any buildings

3. Title Documents: Copies of relevant title documents and ownership certificates

4. Payment Schedule: Detailed breakdown of payment installments and timing if applicable

5. Existing Tenancies: Details of any existing lease agreements and tenant information

6. Property Inventory: List of fixtures, fittings, and equipment included in the sale

7. Due Diligence Results: Summary of technical, legal, and financial due diligence findings

8. Regulatory Approvals: Copies of relevant permits, licenses, and regulatory approvals

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Commercial Property Development

Retail

Manufacturing

Hospitality

Healthcare

Education

Logistics

Banking and Finance

Professional Services

Industrial

Technology

Relevant Teams

Legal

Real Estate

Finance

Operations

Compliance

Risk Management

Facilities Management

Corporate Development

Investment

Property Management

Asset Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Corporate Lawyer

Facilities Manager

Investment Manager

Development Director

Operations Director

Commercial Director

Compliance Officer

Risk Manager

Asset Manager

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

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