Selling Home By Owner Contract Template for Saudi Arabia

The Selling Home By Owner Contract is a crucial legal document used in Saudi Arabia when property owners choose to sell their residential property directly to buyers without intermediary real estate agents. This approach has gained popularity as it can reduce transaction costs while maintaining legal compliance. The document is specifically designed to meet requirements under Saudi Arabian law, including the Real Estate Registration Law, Ministry of Housing regulations, and Sharia principles. It provides comprehensive coverage of all essential sale elements, from property description and price to warranties and transfer procedures. This contract type is particularly relevant in the context of Saudi Vision 2030's real estate reforms, which aim to increase transparency and efficiency in property transactions. The document includes provisions for the 5% Real Estate Transaction Tax (RETT) and incorporates necessary municipal requirements and property registration procedures.

1. Parties: Identification of the seller(s) and buyer(s) with full legal names, national ID numbers, and contact information as required by Saudi law

2. Background: Brief context of the sale and confirmation that the seller is the legal owner with right to sell

3. Definitions: Key terms used throughout the agreement, including property-specific terminology and legal terms

4. Property Description: Detailed legal description of the property including title deed number, plot number, and exact location details

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

6. Payment Terms: Structure and timing of payments, including deposit handling and final payment arrangements

7. Title and Ownership Transfer: Process and requirements for transferring property ownership through official channels

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

9. Property Condition: Current state of the property and any known defects or issues

10. Closing Process: Steps for completing the sale, including documentation and registration requirements

11. Tax Obligations: Responsibility for Real Estate Transaction Tax (RETT) and other applicable fees

12. Risk and Insurance: Transfer of risk and insurance responsibilities between parties

13. Governing Law: Confirmation of Saudi law and Sharia principles as governing law

14. Dispute Resolution: Process for resolving disputes in accordance with Saudi law