Real Estate Installment Contract Template for Saudi Arabia

The Real Estate Installment Contract is a fundamental document in Saudi Arabian property transactions where buyers seek to purchase property through periodic payments rather than a single lump sum. This contract type is particularly relevant in the context of Saudi Arabia's Vision 2030 initiatives aimed at increasing home ownership and developing the real estate sector. The document must comply with both the kingdom's civil law framework and Sharia principles, particularly regarding interest-free financing structures. It includes essential elements such as property specifications, payment schedules, ownership transfer conditions, and default provisions. The contract is commonly used for both residential and commercial properties, requiring careful attention to Saudi Arabia's Real Estate Finance Law, property registration requirements, and consumer protection regulations. Its usage has increased significantly with the growth of the Saudi real estate market and the government's support for property ownership through various financing schemes.

1. Parties: Identification of the seller and buyer with complete details including ID/CR numbers as required by Saudi law

2. Background: Context of the sale and brief description of the property and transaction structure

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

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

5. Purchase Price and Payment Terms: Total price, down payment, number of installments, installment amounts, and payment schedule

6. Transfer of Ownership: Conditions and process for transferring property ownership, including registration requirements

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

8. Buyer's Obligations: Payment obligations, maintenance responsibilities, and other buyer commitments

9. Default and Remedies: Consequences of payment default and available remedies for both parties

10. Property Handover: Process and conditions for physical property handover

11. Insurance and Risk: Requirements for property insurance and allocation of risks

12. Governing Law and Jurisdiction: Confirmation of Saudi law application and competent courts

13. Notices: Method and addresses for official communications between parties

14. Execution: Signature blocks and attestation requirements