The Contract To Buy Property is a fundamental legal instrument used in Saudi Arabian real estate transactions to formalize the purchase and transfer of real property. This document is essential for any property acquisition within the Kingdom, whether for residential, commercial, or industrial purposes. It must comply with both Saudi civil law and Sharia principles, incorporating recent reforms under Saudi Vision 2030 and related real estate regulations. The contract covers critical aspects including property details, payment terms, warranties, and transfer mechanisms, while ensuring adherence to local municipality requirements and foreign ownership restrictions where applicable. It's particularly important to note that this document must be executed through official channels and registered with relevant Saudi authorities to ensure legal validity and enforceability.
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1. Parties: Identification of the seller and buyer with full legal names, addresses, and identification numbers as per Saudi requirements
2. Background: Context of the transaction and brief description of the property being sold
3. Definitions: Key terms used throughout the agreement, including Arabic legal terms where relevant
4. Property Details: Comprehensive description of the property including location, boundaries, size, and title deed number
5. Purchase Price: The agreed price, payment terms, and method of payment in compliance with Sharia principles
6. Payment Schedule: Breakdown of payment installments, timing, and payment mechanisms
7. Conditions Precedent: Conditions that must be satisfied before completion, including regulatory approvals
8. Seller's Warranties: Representations regarding property ownership, condition, and absence of encumbrances
9. Buyer's Warranties: Representations regarding capacity to purchase and compliance with relevant laws
10. Completion: Process and requirements for transferring ownership and registration
11. Transfer of Title: Specific mechanics of title transfer through the relevant Saudi authorities
12. Taxes and Fees: Allocation of responsibility for various taxes, registration fees, and other costs
13. Governing Law: Confirmation of Saudi law governance and Sharia compliance
14. Dispute Resolution: Mechanism for resolving disputes under Saudi law
1. Foreign Ownership Provisions: Required when buyer is non-Saudi, detailing additional requirements and restrictions
2. Mortgage Provisions: Required when purchase involves Sharia-compliant financing
3. Property Management: Included when dealing with properties in managed communities
4. Development Obligations: Required for undeveloped land or properties requiring specific development
5. Off-Plan Provisions: Required for properties purchased before completion
6. Tenant Rights: Required when property is sold with existing tenants
7. Municipality Requirements: Special conditions required by local municipality regulations
8. Environmental Provisions: Required for properties with environmental considerations or requirements
1. Property Description Schedule: Detailed technical description of the property, including maps and plans
2. Title Documents: Copies of current title deed and related ownership documents
3. Payment Schedule: Detailed breakdown of payment installments and timing
4. Property Condition Report: Current condition assessment and any identified defects
5. Required Permits: Copies of relevant permits and approvals
6. Property Plans: Architectural plans, drawings, and specifications
7. Inventory: List of included fixtures, fittings, and contents if applicable
8. Due Diligence Documents: Results of legal and technical due diligence investigations
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