Document background
The Property Installment Sale Agreement is a crucial document used in Saudi Arabian real estate transactions where the purchase price is paid in installments rather than as a lump sum. This arrangement must comply with both Saudi civil law and Islamic Sharia principles, particularly regarding the prohibition of interest (Riba). The agreement is commonly used for both residential and commercial properties, providing a structured approach to property acquisition while protecting the interests of both seller and purchaser. It includes detailed provisions for payment terms, property maintenance, ownership transfer, and default remedies, all within the framework of Saudi Arabian legal requirements and Islamic finance principles. The document is particularly relevant in situations where buyers seek to acquire property through periodic payments while sellers wish to maintain security interests until full payment is received.
