The General Authority for Real Estate in Saudi Arabia announced the adoption of new regulatory controls aimed at rectifying violations of the legal provisions governing the landlord-tenant relationship. This decisive step comes as part of the Authority's ongoing efforts to regulate the real estate market and improve the efficiency of transactions within it, thereby guaranteeing the rights of all parties and enhancing the sector's attractiveness for investment.
Details of the procedures and legal deadline
The authority clarified that the new regulations grant concerned parties a specific timeframe to rectify the situation. It emphasized that if the violation is not corrected within a period not exceeding ten days , the authority has the full right to take the necessary regulatory measures to enforce compliance. These measures include executive powers that may extend to:
- Adjusting the total wage amount in the contract to comply with the regulations.
- The lease agreement must be renewed to comply with the provisions adopted on the electronic rental services network “Ejar”.
The organizational context and the role of the “Ejar” network
This decision cannot be separated from the broader context of developments in the Kingdom's real estate sector. Since the launch of the "Ejar" network, regulatory bodies have been working to automate and document contracts to reduce the number of litigation disputes that previously burdened the courts. These new regulations are part of a series of legislations aimed at transforming the real estate market from one based on unregulated individual transactions to a well-governed, institutionalized sector, in line with the Kingdom's Vision 2030 goals of increasing transparency in the real estate sector.
Protecting the "good faith" tenant and the legal process
In an important legal provision included in the regulations, the Authority addressed cases where correcting a violation is technically or practically impossible, such as when a landlord rents the property to another tenant acting in "good faith" (i.e., unaware of the previous violation). In such cases, and to maintain legal stability, the dispute is referred to the competent court for adjudication according to established judicial procedures, rather than being handled directly by the Authority through administrative channels.
Expected economic and social impact
The implementation of these regulations is expected to enhance trust between landlords and tenants, as clarity in procedures and swift resolution of violations are essential for the stability of the rental market. The Authority also emphasized that the application of these regulations does not preclude those affected from seeking legal recourse to claim compensation for any material or moral damages incurred as a result of these violations, and confirmed that these regulations will take effect immediately upon their adoption.
