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New housing laws to take effect in mid-2013

JEDDAH: At a time when the Ministry of Housing is tightening the noose on those who stall to pay their residential rents, the ministry will implement the “Ijarah” system in mid-2013.
The system protects the rights of tenants and landlords with the participation of seven government agencies, sources who did not want to be identified told a local newspaper.
The Ministry of Housing declared that the Ijarah project operates in accordance with a time plan. It pointed out it had entered the second phase, which is related to monitor real estates as well as tracking the payments of tenants. The second phase of Ijarah was announced when the Ministry of Housing signed the contract with Al-Alam Company in May this year.
“The Housing Ministry is making intensive efforts with all relevant parties in the real estates offices to make this system a mandatory one. These offices will be established to deal with the Ijarah program network,” the director of public relations and media at the ministry, Mohammed Al-Goinm, confirmed.
The Ijarah project will be implemented in all regions of the Kingdom and all eligible real estate offices will be covered by it. However, the service will be launched experimentally in some areas initially before being enforced throughout the country,” Al-Goinm said.
He pointed out that it would begin preparing its electronic network, which will combine the efforts of many government agencies in the service of this vital sector.
The minister of Housing recently said the Ijarah system is a national program that will regulate the rental-housing sector in the Kingdom.
It aims at providing solutions to the sector through the organization of the relationship between the tenant and the landlord by safeguarding their rights in addition to providing an electronic network to view condominiums.
It will also develop a unified and guiding contract to be agreed upon by the tenant and landlord via an electronic platform to facilitate the contract documentation and updating it, and give the judicial execution advantage to the typical electronic contract.
In addition, it will provide a service for paying in installments, a statistical database and indicators to monitor supply and demand as well as prices. This is to enhance transparency in this market, which is expected to stop landlords raising rents at will and improve confidence in the housing sector.

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