Residential Sales Agreement Template for Saudi Arabia

The Residential Sales Agreement is a crucial legal instrument used in Saudi Arabia for documenting and executing the sale of residential properties. It is essential for both individual and corporate transactions in the Saudi real estate market, ensuring compliance with local laws, Sharia principles, and regulatory requirements. This document is particularly important given Saudi Arabia's developing real estate sector and recent regulatory changes aimed at increasing transparency and protecting both buyers and sellers. The agreement typically includes comprehensive details about the property, payment terms, warranties, and completion procedures, while also addressing specific Saudi requirements such as municipality approvals and title deed registration processes. It serves as the primary contract document for residential property transactions and must be prepared in accordance with the Real Estate Registration Law and related regulations.

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

2. Background: Brief context of the sale and confirmation that the seller owns the property

3. Definitions: Key terms used throughout the agreement, including Property, Completion Date, Purchase Price, etc.

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

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

6. Payment Terms: Detailed breakdown of payment installments, deposit requirements, and final payment conditions

7. Completion: Process and requirements for completing the sale, including documentation and registration

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

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

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

11. Registration: Requirements and procedures for registering the sale with relevant authorities

12. Costs and Taxes: Allocation of transaction costs, taxes, and fees between parties

13. Default and Termination: Consequences of default and conditions for termination

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

15. Dispute Resolution: Process for resolving disputes under Saudi law