Real Estate Authority: Extension of the deadline for vacating residential properties for a full year
The CEO of the General Authority for Real Estate, Abdullah Al-Hammad, issued an important decision amending the notice period for landlords to give tenants in standard residential lease contracts. The new decision stipulates that the notice period for non-renewal of the lease will be increased to a minimum of 365 days before the lease expires, and this applies exclusively to cases where the landlord wishes to reclaim the property for personal use or for the use of a first-degree relative.
The context of the decision and the regulation of the real estate market
This strategic decision comes as part of a comprehensive reform package led by the General Authority for Real Estate to regulate the rental sector in Saudi Arabia. This step aims to address the challenges previously faced by tenants, where short notice periods caused disruption for families and social instability due to the need to find alternative housing at short notice. By extending the notice period to a full year, the Authority ensures a fair balance between the landlord's right to dispose of their property and the tenant's right to housing stability.
Mechanism for objecting to rental value
To enhance transparency, the Authority has enabled stakeholders in the sector (landlords and tenants) to submit formal objections to the total rent value of vacant properties. The Authority clarified that these objections are subject to strict regulations approved by the Board of Directors. The objection must be justified and supported by documents proving substantial changes to the property, such as comprehensive renovations, structural and structural modifications that justify the rent adjustment, or in cases where the property has been offered for rent again after a prolonged period of vacancy.
Economic and social impact
This decision is expected to reduce the number of real estate disputes brought before judicial and quasi-judicial bodies, as the new standardized contract provides complete clarity regarding rights and obligations. This move also enhances the attractiveness of investment in the residential real estate sector by formalizing and professionalizing the rental relationship, aligning with the goals of the Kingdom's Vision 2030, which aims to increase homeownership rates and regulate the housing sector to become a key pillar of the national economy.
The Authority confirms that all these procedures are carried out through approved electronic channels, most notably the "Ejar" network, which is the technical arm for documenting contracts and preserving the rights of the parties, thus facilitating the process of monitoring and compliance with the new regulations.
