{"id":145678,"date":"2026-06-06T18:06:38","date_gmt":"2026-06-06T15:06:38","guid":{"rendered":"https:\/\/www.salamahlaw.com\/?p=145678"},"modified":"2026-06-06T18:06:38","modified_gmt":"2026-06-06T15:06:38","slug":"what-is-an-off-plan-real-estate-sale-contract","status":"publish","type":"post","link":"https:\/\/www.salamahlaw.com\/en\/what-is-an-off-plan-real-estate-sale-contract\/","title":{"rendered":"What is an Off-Plan Real Estate Sale Contract?"},"content":{"rendered":"

Off-plan real estate projects are a modern economic mechanism designed to attract investment. They give investors the opportunity to follow construction progress and all associated development updates. This development led to the emergence of a new contractual model: <\/span>the Off-Plan Sale Contract<\/b>.<\/span><\/p>\n

As a result of this economic shift in the real estate sector, the Saudi regulator issued the <\/span>Off-Plan Real Estate Sale and Lease Law<\/b>, which governs all activity related to marketing, selling, or leasing real estate units off-plan, whether receiving funds from buyers, tenants, or financiers, as well as off-plan real estate projects run by government entities in accordance with their nature and within the limits of the regulations.<\/span><\/p>\n

In this article, Al-Salamah Law Firm explains all legal aspects related to the <\/span>Off-Plan Real Estate Sale Contract<\/b>.<\/span><\/p>\n

 <\/p>\n

Definition of the Off-Plan Sale Contract<\/span><\/h2>\n

Article (1) of the Law defines a <\/span>real estate project<\/span><\/i> as:<\/span>
\n<\/span> A real estate development project intended for the sale or lease of developed land or real estate units off-plan, before starting the execution or during the construction and development stage, according to the agreed-upon design or master plan.<\/span><\/i><\/p>\n

Real estate development is defined as:<\/span>
\n<\/span> Constructing residential, commercial, office, service, industrial, tourism, or other types of real estate projects.<\/span><\/i><\/p>\n

The Law does not provide a specific definition for the off-plan sale contract \u2014 leaving this to jurisprudence and court interpretation. According to legal doctrine, an off-plan sale contract (sale \u201cunder construction\u201d) is one in which the seller commits to constructing a building within a specified period under the contract\u00a0 and the sale may be concluded for future delivery or upon completion.<\/span><\/p>\n

This contract contains two core components:<\/b><\/p>\n

    \n
  1. The seller\u2019s obligation to construct.<\/span><\/li>\n
  2. Completion of construction within the period defined or agreed in the contract between both parties.<\/span>\n

    <\/span><\/li>\n<\/ol>\n

    Which Authority Regulates Off-Plan Sale Contracts?<\/span><\/h2>\n

    Article (2) of the Executive Regulations states that the General Real Estate Authority is responsible for supervising the regulation of off-plan sale and lease activities, including:<\/span><\/p>\n

      \n
    • Issuing the procedural guide in accordance with the Law and Regulations<\/span>\n

      <\/span><\/li>\n

    • Issuing executive decisions<\/span><\/li>\n
    • Registering real estate developers<\/span><\/li>\n
    • Licensing real estate projects<\/span><\/li>\n
    • Supervising and inspecting activities within the sector<\/span>\n

      <\/span><\/li>\n<\/ul>\n

      Who is Authorized to Conclude Off-Plan Sale Contracts?<\/span><\/h2>\n

      Article (3) of the Law stipulates that no real estate developer may conduct off-plan sale or lease activities unless registered in the developers\u2019 registry \u2014 nor may a project be marketed or advertised in any media, locally or internationally, unless the project is licensed by the competent authority.<\/span><\/p>\n

      Therefore, there is indeed an official registry that developers must be listed in before practicing off-plan sale activities.<\/span><\/p>\n

       <\/p>\n

      the registration requirements:<\/span><\/h2>\n

      Requirements for registering a Legal Entity (companies & establishments):<\/span><\/p>\n

        \n
      • A valid commercial register<\/span><\/li>\n
      • Obtaining <\/span>at least 35 points out of 100<\/b> as per the evaluation table in Article (5) (financial, technical, organizational capacities, and human resources)<\/span>\n

        <\/span><\/li>\n<\/ul>\n

        Requirements for registering a Natural Person developer:<\/span><\/p>\n

          \n
        • Obtaining <\/span>at least 35 points out of 55<\/b> based on:<\/span>\n
            \n
          • Passing the developer qualification program<\/span><\/li>\n
          • Proven track record of completed projects<\/span><\/li>\n
          • A valid credit report<\/span><\/li>\n
          • VAT registration certificate<\/span>\n

            <\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

            Developers may request score upgrades if capacities improve. If the minimum score is not maintained, registration is suspended for 3 months, after which it is cancelled if not corrected.<\/span><\/p>\n

            Note:<\/b> Suspension or cancellation does <\/span>not<\/b> affect ongoing licensed projects already approved.<\/span><\/p>\n

             <\/p>\n

            How to Obtain a Project-Specific Off-Plan License?<\/span><\/h2>\n

            According to Article (6) of the Law, after being registered as a developer, the developer must apply to the General Real Estate Authority for the project license and attach:<\/span><\/p>\n

              \n
            • Valid commercial register<\/span><\/li>\n
            • Chamber of Commerce membership<\/span><\/li>\n
            • Credit report<\/span><\/li>\n
            • Valid building permit<\/span><\/li>\n
            • Valid title deed<\/span><\/li>\n
            • Agreement with land owner (if applicable)<\/span><\/li>\n
            • Agreement between main & sub-developer (if applicable)<\/span><\/li>\n
            • Approved architectural designs<\/span><\/li>\n
            • Agreement with consulting office<\/span><\/li>\n
            • Agreement with certified accountant<\/span><\/li>\n
            • Feasibility study with cost analysis and cash flow<\/span><\/li>\n
            • Commitment to begin construction within 6 months of license issuance<\/span><\/li>\n
            • Standard sale contract including delivery dates (to the exact day)<\/span><\/li>\n
            • Escrow account agreement with a licensed Saudi bank<\/span>\n

              <\/span><\/li>\n<\/ul>\n

              The Authority must issue a decision within <\/span>30 days<\/b> of a complete submission \u2014 otherwise the request is considered <\/span>approved by default<\/b>. In case of rejection, the decision must be justified.<\/span><\/p>\n

               <\/p>\n

              FAQs<\/span><\/h2>\n

              What is the Off-Plan Sale or Lease Program?<\/b>
              \n<\/b> It is the official body authorized to issue licenses for off-plan unit sale in Saudi Arabia and to issue developer registry certificates.<\/span><\/p>\n

              What is the Off-Plan Sale & Lease Law?<\/b>
              \n<\/b> It regulates the activity, enhances transparency and disclosure, protects all parties, and reduces violations \u2014 increasing investor confidence in Saudi Arabia\u2019s real estate sector.<\/span><\/p>\n

              How are lands divided under off-plan sale?<\/b>
              \n<\/b> Based on engineering and planning drawings specifying spaces and required facilities.<\/span><\/p>\n

              Can land or property be sold off-plan at any time?<\/b>
              \n<\/b> Yes, provided all legal procedures related to property registration and title documentation are completed.<\/span><\/p>\n

              Is there a sample off-plan sale agreement?<\/b>
              \n<\/b> Yes \u2014 via this link:<\/span><\/p>\n

              What is \u201cWafi\u201d?<\/b>
              \n<\/b> “Wafi” is one of the key regulatory solutions launched by the General Real Estate Authority to regulate off-plan sales, protect buyers and investors, and ensure developer compliance with approved standards.<\/span><\/p>\n

               <\/p>\n

              In Conclusion<\/b><\/h3>\n

              At Al-Salamah Law Firm, we have been ranked among the <\/span>top legal real estate teams for 2025<\/b> due to our expertise. We provide specialized services in reviewing off-plan sale and lease contracts and offering legal guidance before signing.<\/span><\/p>\n

              Our services include:<\/span><\/p>\n

                \n
              • Legal auditing: Comprehensive contract review to ensure compliance<\/span><\/li>\n
              • Reviewing payment terms, delivery dates, and delivery guarantees<\/span><\/li>\n
              • Supporting you in adding clauses that protect your rights<\/span><\/li>\n
              • Providing legal advice in cases of delay or breach of contract<\/span>\n

                <\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

                Off-plan real estate projects are a modern economic mechanism designed to attract investment. They give investors the opportunity to follow construction progress and all associated development updates. This development led to the emergence of a new contractual model: the Off-Plan Sale Contract. As a result of this economic shift in the real estate sector, the…<\/p>\n","protected":false},"author":34,"featured_media":145674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[109],"tags":[],"class_list":["post-145678","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-law"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts\/145678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/comments?post=145678"}],"version-history":[{"count":2,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts\/145678\/revisions"}],"predecessor-version":[{"id":145680,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/posts\/145678\/revisions\/145680"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/media\/145674"}],"wp:attachment":[{"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/media?parent=145678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/categories?post=145678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.salamahlaw.com\/en\/wp-json\/wp\/v2\/tags?post=145678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}