Property Trust Deed Template for Saudi Arabia

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Key Requirements PROMPT example:

Property Trust Deed

"I need a Property Trust Deed for a commercial building in Riyadh to be held in trust for multiple family beneficiaries, with quarterly income distribution and specific Shariah-compliant investment powers for the trustee to develop the property starting March 2025."

Document background
The Property Trust Deed is a crucial legal instrument used in Saudi Arabia when establishing a trust over real property assets. It serves as the founding document that transfers property ownership to a trustee while ensuring compliance with both Saudi civil law and Islamic Shariah principles. This document is particularly important for family wealth management, corporate property holdings, and real estate investment structures. The deed must be carefully drafted to include all necessary elements required by Saudi authorities, including proper property registration details, clear beneficiary designations, and specific trustee powers. It's commonly used in scenarios involving family wealth preservation, corporate restructuring, or charitable endowments (Waqf). The document must be executed before a notary public and registered with relevant Saudi authorities to be legally effective.
Suggested Sections

1. Parties: Identification of the Settlor (property owner), Trustee, and Beneficiaries

2. Background: Context of the trust creation and purpose of the arrangement

3. Definitions: Key terms used throughout the deed, including property description, Islamic finance terms, and technical definitions

4. Declaration of Trust: Formal establishment of the trust and transfer of property to the Trustee

5. Trust Property: Detailed description of the property being placed in trust, including all rights and interests

6. Shariah Compliance: Provisions ensuring the trust arrangement complies with Islamic law principles

7. Trustee Powers and Duties: Comprehensive list of Trustee's authorities and responsibilities

8. Beneficiary Rights: Rights and entitlements of the beneficiaries under the trust

9. Trust Administration: Procedures for managing the trust property and making distributions

10. Term and Termination: Duration of the trust and circumstances for termination

11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdictional matters

Optional Sections

1. Foreign Ownership Provisions: Required when any party is not a Saudi national, addressing specific foreign ownership requirements

2. Succession Planning: Optional provisions for continuation of trust upon death or incapacity of key parties

3. Investment Powers: Required when the trust includes authority to invest or develop the property

4. Multiple Trustees: Required when more than one trustee is appointed, defining their relationship and decision-making process

5. Dispute Resolution: Optional detailed procedure for handling disputes, including potential arbitration provisions

6. Income Distribution Rules: Required when the trust involves regular income distribution from property

7. Zakat Provisions: Optional section addressing Islamic charitable giving requirements

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the trust property, including title deeds and registration details

2. Beneficiary Schedule: List of beneficiaries and their respective interests or entitlements

3. Powers of Trustee Schedule: Comprehensive list of specific powers granted to the Trustee

4. Fee Schedule: Details of trustee compensation and trust administration expenses

5. Registration Requirements: Checklist and requirements for registering the trust deed with relevant authorities

6. Property Valuation Report: Independent valuation of the trust property at the time of trust creation

7. Shariah Compliance Certificate: Documentation from qualified scholars confirming the arrangement's compliance with Islamic law

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

Islamic Finance

Property Development

Banking

Investment Management

Family Business

Hospitality

Retail

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate

Compliance

Islamic Finance

Property Management

Trust Administration

Asset Management

Wealth Management

Corporate Services

Risk Management

Relevant Roles

Legal Counsel

Property Manager

Trust Administrator

Real Estate Director

Shariah Compliance Officer

Investment Manager

Wealth Manager

Corporate Trustee

Property Rights Registrar

Real Estate Investment Officer

Family Office Manager

Asset Manager

Property Portfolio 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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