Property Sale Agreement Template for Saudi Arabia

The Property Sale Agreement is a fundamental legal document used in Saudi Arabia for transferring ownership of real estate between parties. It serves as the primary instrument for documenting property transactions in compliance with Saudi Arabian law, which combines Sharia principles with modern commercial practices. This document is essential for any real estate transaction, whether residential or commercial, and must be structured to meet specific requirements of Saudi property law, including proper property registration, municipality approvals, and compliance with foreign ownership restrictions where applicable. The agreement typically includes comprehensive details about the property, payment terms, warranties, and conditions for transfer, while ensuring all aspects of the transaction are Sharia-compliant. It's particularly important in Saudi Arabia's developing real estate market, where clear documentation and compliance with both religious and civil law requirements are crucial for ensuring legally binding and enforceable property transfers.

1. Parties: Identification of the seller and buyer with full legal names, addresses, and identification numbers as required by Saudi law

2. Background: Context of the sale and brief description of the property being transferred

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including location, dimensions, deed number, and registration details

5. Purchase Price: Agreed purchase price, payment terms, and method of payment

6. Payment Terms: Detailed breakdown of payment schedule, deposit requirements, and final settlement arrangements

7. Completion: Process and requirements for completing the sale, including timing and location

8. Seller's Warranties: Warranties regarding property ownership, absence of encumbrances, and compliance with laws

9. Property Condition: Statement of property condition and any agreed repairs or modifications

10. Transfer of Ownership: Process and requirements for legal transfer of property ownership

11. Representations and Warranties: General representations and warranties from both parties

12. Sharia Compliance: Declaration of compliance with Islamic Sharia principles

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

14. Default and Termination: Consequences of default and termination rights

15. Governing Law: Confirmation of Saudi law as governing law and jurisdiction

16. Execution: Signature blocks and execution requirements