Residential Sale Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Residential Sale Agreement

"I need a Residential Sale Agreement for a luxury villa in Riyadh's Diplomatic Quarter, with the sale including all existing furniture and appliances, and completion scheduled for March 2025. The buyer is a foreign diplomat, so the agreement needs to address foreign ownership requirements."

Document background
The Residential Sale Agreement is a fundamental legal document used in Saudi Arabia for transferring ownership of residential properties. It serves as the primary contract between property sellers and buyers, whether they are individuals or entities, and must comply with both Sharia principles and Saudi Arabia's modern real estate regulations. This document is essential for any residential property transaction in the Kingdom, incorporating requirements from various laws including the Real Estate Ownership Law, Registered Real Estate Mortgage Law, and recent reforms under Vision 2030. The agreement typically includes comprehensive details about the property, parties involved, purchase price, payment terms, warranties, and completion procedures, while ensuring compliance with local property registration requirements and tax obligations. It's particularly important to note that this document must be structured to accommodate Saudi Arabia's unique legal framework, including considerations for foreign ownership restrictions and religious compliance.
Suggested Sections

1. Parties: Identification of the seller and buyer with their full legal names, national ID numbers/Iqama numbers, and contact details

2. Background: Context of the sale, including brief property description and parties' intention to enter into the agreement

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

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

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

6. Payment Schedule: Breakdown of payment installments and due dates

7. Completion: Process and requirements for completing the sale, including title transfer procedures

8. Seller's Warranties: Seller's representations regarding property ownership, condition, and legal status

9. Buyer's Warranties: Buyer's representations regarding financial capacity and compliance with ownership laws

10. Property Handover: Terms and process for physical handover of the property

11. Taxes and Fees: Allocation of responsibility for Real Estate Transaction Tax and other applicable fees

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

13. Dispute Resolution: Process for resolving disputes through Saudi courts or alternative methods

14. Notices: Method and addresses for formal communications between parties

15. Execution: Signature requirements and execution formalities

Optional Sections

1. Mortgage Provisions: Required when the property purchase involves mortgage financing

2. Foreign Ownership Compliance: Required when the buyer is a non-Saudi national

3. Condition Precedents: Include when completion is subject to specific conditions being met

4. Property Management: Required when the property is part of a managed complex or compound

5. Defect Liability: Include for new properties or recently completed developments

6. Tenant Rights: Required when the property is sold with existing tenants

7. Utilities Transfer: Include when specific arrangements are needed for utility account transfers

8. Furniture and Fixtures: Required when the sale includes specific furniture or fixed installations

9. Development Obligations: Include when the property is part of an ongoing development project

Suggested Schedules

1. Property Title Deed: Copy of the official property title deed and translation if required

2. Property Plans: Official plans showing property boundaries and building layouts

3. Inventory List: Detailed list of any included furnishings, fixtures, and equipment

4. Payment Schedule: Detailed breakdown of payment installments and due dates

5. Property Certificates: Copies of building permits, completion certificates, and other relevant documentation

6. Maintenance Records: History of property maintenance and any ongoing maintenance contracts

7. Utility Documents: Current utility documents and account information

8. Building Rules: If applicable, rules and regulations of the building or compound

9. Due Diligence Reports: Technical and legal inspection reports

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

Banking & Finance

Legal Services

Property Development

Construction

Insurance

Property Management

Facility Management

Professional Services

Public Sector

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Sales

Documentation

Risk Management

Finance

Operations

Customer Relations

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Legal Counsel

Compliance Officer

Contract Manager

Real Estate Developer

Property Consultant

Title Officer

Mortgage Officer

Real Estate Investment Manager

Property Valuation Specialist

Transaction Coordinator

Legal Documentation Specialist

Risk Assessment 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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