Property Sale Contract Template for Saudi Arabia

The Property Sale Contract is a fundamental legal instrument used in Saudi Arabia for documenting and executing real estate transactions. It is essential for any transfer of property ownership within the Kingdom, whether between individuals, corporate entities, or a combination thereof. The contract must comply with both Saudi civil law and Sharia principles, particularly regarding interest-free transactions and proper documentation requirements. It includes comprehensive details about the property, parties involved, payment terms, and conditions for transfer, while ensuring alignment with local municipality regulations and foreign ownership restrictions where applicable. This document is typically required for property registration authorities and serves as evidence of the transaction for all relevant government departments and financial institutions.

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

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

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

4. Property Details: Comprehensive description of the property including title deed number, location, boundaries, and size as per official documents

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

6. Payment Schedule: Detailed breakdown of payment installments, dates, and methods

7. Property Handover: Terms and conditions for physical possession transfer and key handover

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

9. Buyer's Obligations: Responsibilities of the buyer including payment obligations and documentation requirements

10. Title Transfer: Process and requirements for legal transfer of title at the relevant authorities

11. Closing Requirements: Conditions that must be met before completion of the sale

12. Governing Law: Confirmation of Saudi law and Sharia compliance as governing law

13. Dispute Resolution: Mechanism for resolving disputes under Saudi jurisdiction

14. Notices: Process for formal communications between parties

15. Execution: Signature blocks and execution requirements