Real Estate Sale Contract template

Real Estate Sale Contract Template Compliant with the Laws of the Kingdom of Saudi Arabia

On this day ........, corresponding to / / AH, corresponding to / / AD, in the city of ........, it has been agreed, with the help of God Almighty, between: First Party (Seller): Mr/Ms ........................, Nationality: ........, National ID/Iqama No. (..............), Date of birth: / / AH, National Address: ........................, Mobile: ............, Email: ............, hereinafter referred to as the “Seller”. Second Party (Buyer): Mr/Ms ........................, Nationality: ........, National ID/Iqama No. (..............), Date of birth: / / AH, National Address: ........................, Mobile: ............, Email: ............, hereinafter referred to as the “Buyer”. Preamble: Whereas the Seller has full ownership of the property described in Clause Two of this contract and wishes to sell it, and whereas the Buyer wishes to purchase it after inspecting it sufficiently to remove any uncertainty, the two parties, having full legal capacity under Sharia and the law, have agreed as follows: Clause One: Preamble and Annexes The above preamble, the copy of the title deed, the site sketch and any annexes signed by both parties form an integral part of this contract. Clause Two: Description of the Property Sold

• Title deed No.: (..............) dated: / / AH, issued by: ........................
• Type of title deed: (electronic deed / paper deed — to be specified on signing).
• Plot No.: (........), Plan No.: (........), District: ........, City: ........
• Total area: (........) m², and type of use: (residential / commercial / agricultural).
• Boundaries and lengths: North ........ length ........ m, South ........ length ........ m, East ........ length ........ m, West ........ length ........ m.
• The sale covers: (the entire property / a share of ........ out of ........).
• Description of buildings on it — if any: ........................ (or: vacant land / shell and core structure).

Clause Three: Seller’s Declarations and Warranties The Seller declares and warrants the following:

• That he is the sole owner of the property sold, and that his ownership is free from any dispute.
• That the property is not mortgaged or attached, and is not subject to any third-party rights that would prevent title transfer.
• That there is no legal impediment to transferring ownership of the property to the Buyer.
• That he has paid all fees and utility bills owed by him up to the date of handover.
• The Seller bears full legal responsibility for the accuracy of these declarations.

Clause Four: Price and Method of Payment

• Total agreed price: (..............) Saudi riyals only.
• Deposit/down payment on signing: (..............) Saudi riyals.
• The balance of the price, being (..............) Saudi riyals, shall be paid on title transfer.
• Payment shall be made via (an approved escrow account / bank transfer) to IBAN: SA.............................., and no cash payment shall be recognised without proof.

Clause Five: Real Estate Transaction Tax This transaction is subject to Real Estate Transaction Tax at a rate of (5%) of the transaction value, calculated on the agreed value or the fair market value, whichever is higher. It shall be paid by the party (..............) as agreed between the parties. Real estate transactions subject to this tax are not subject to value added tax (VAT), to avoid double taxation. Note: An eligible citizen may benefit from state support for a first home in paying this tax within the limits set by law; the competent authority should be consulted on this. Clause Six: Title Transfer and Transfer of Ownership

• The two parties undertake to complete the title transfer procedures through the Najiz portal within a maximum of (........) days from the date of this contract.
• Each party undertakes to approve the request through the Nafath service at the specified time and to provide any required documents.
• Ownership passes upon issue of the new electronic title deed in the Buyer’s name, not merely upon signing this contract.
• If title transfer cannot be completed for a reason attributable to the Seller or to the status of the property, the Seller shall refund any part of the price received within (........) days, together with any resulting compensation in accordance with Clause Eight.

Clause Seven: Inspection and Handover

• The Buyer acknowledges that he has inspected the property fully and sufficiently to remove any uncertainty under Sharia, and has accepted it in its current condition.
• The property shall be handed over with vacant possession on: / / AH, and a handover record signed by both parties shall be drawn up.
• The Seller shall transfer the electricity and water meters into the Buyer’s name, or enable him to transfer them, within (........) days of handover.

Clause Eight: Breach and Penalty Clause If either party refuses to complete the title transfer within the specified period without acceptable excuse, after being notified in writing at his national address or email recorded above and given a period of (........) days, the other party may choose between demanding performance of the contract or rescinding it, together with compensation for damage in the amount of (..............) Saudi riyals, in accordance with the provisions of the Civil Transactions Law. Clause Nine: General Provisions

• This contract and its interpretation are governed by the laws of the Kingdom of Saudi Arabia, in particular the Civil Transactions Law.
• Disputes shall be settled amicably; failing that, the competent court in the Kingdom shall have jurisdiction.
• The national address and email recorded above are adopted as the chosen address for serving notices.
• This contract has been executed in two signed copies, one held by each party to act upon.

Signatures: Seller: Name: ........................ Signature: ................ Date: / / AH Buyer: Name: ........................ Signature: ................ Date: / / AH