JEDDAH: An expert has said that approximately 90 percent of the current leasing contracts in the Kingdom are illegal.
“This has resulted in thousands of lawsuits and litigations to resolve issues between the parties,” Khaled Al-Mobayed, a real estate expert, was quoted as saying to a local publication.
“According to the Ministry of Housing, however, the Landlord-Tenant Law, which is expected to be operative in six months, will regulate the relationship between the two sides and may eliminate such litigations.”
Al-Mobayed said that the law would be mandatory but would not take responsibility for setting rents which are subject to supply and demand.
“The law will be applicable on four levels. The first stage began a year ago and involves an electronic platform launched by former Housing Minister Shuwaish Al-Duwaihi. This electronic platform will benefit both landlords and tenants,” he explained.
“The second stage,” he said, “involves the executive contract which is considered to be the most important stage for the two sides and the mediator. It is aimed at maintaining the lawful rights of all parties involved and includes a mechanism to regulate relations between them. This is seen as a platform to control all the laws and regulations associated with limiting price manipulations in the market.”
The next stage involves documenting information on the tenants on the security system and in the system of the Saudi Credit Bureau (SIMAH). This tracks down rent defaulters in order to register the type of the property leased, its classification and any other relevant information.
He said that the system would be obligatory and that thousands of real estate experts and appraisers in the leasing industry had already registered on the electronic platform. He expects the system to receive a wide welcome by those working in the property industry, especially if the unified single contract system and the electronic payment system becomes applicable throughout the Kingdom. It will maintain the rights of all concerned parties.
Abdullah Al-Maliki, an expert in real estate asset management, said the system had taken into account the visions and observations of several real estate experts. “It will constitute an excellent way to control the relationship between the two sides of the lease. It was announced two years ago and since then it has been subjected to many studies in preparation for its final application,” he said.
The Ministry of Housing recently announced that the Ejar system would come into force after six months and will oblige real estate offices in the Kingdom to register on the platform in order to benefit from its services. This is aimed at limiting as much as possible the “randomness” in the work of real estate offices and to ease the process of looking for a property for leasing by means of a flexible and clear electronic platform.
“This has resulted in thousands of lawsuits and litigations to resolve issues between the parties,” Khaled Al-Mobayed, a real estate expert, was quoted as saying to a local publication.
“According to the Ministry of Housing, however, the Landlord-Tenant Law, which is expected to be operative in six months, will regulate the relationship between the two sides and may eliminate such litigations.”
Al-Mobayed said that the law would be mandatory but would not take responsibility for setting rents which are subject to supply and demand.
“The law will be applicable on four levels. The first stage began a year ago and involves an electronic platform launched by former Housing Minister Shuwaish Al-Duwaihi. This electronic platform will benefit both landlords and tenants,” he explained.
“The second stage,” he said, “involves the executive contract which is considered to be the most important stage for the two sides and the mediator. It is aimed at maintaining the lawful rights of all parties involved and includes a mechanism to regulate relations between them. This is seen as a platform to control all the laws and regulations associated with limiting price manipulations in the market.”
The next stage involves documenting information on the tenants on the security system and in the system of the Saudi Credit Bureau (SIMAH). This tracks down rent defaulters in order to register the type of the property leased, its classification and any other relevant information.
He said that the system would be obligatory and that thousands of real estate experts and appraisers in the leasing industry had already registered on the electronic platform. He expects the system to receive a wide welcome by those working in the property industry, especially if the unified single contract system and the electronic payment system becomes applicable throughout the Kingdom. It will maintain the rights of all concerned parties.
Abdullah Al-Maliki, an expert in real estate asset management, said the system had taken into account the visions and observations of several real estate experts. “It will constitute an excellent way to control the relationship between the two sides of the lease. It was announced two years ago and since then it has been subjected to many studies in preparation for its final application,” he said.
The Ministry of Housing recently announced that the Ejar system would come into force after six months and will oblige real estate offices in the Kingdom to register on the platform in order to benefit from its services. This is aimed at limiting as much as possible the “randomness” in the work of real estate offices and to ease the process of looking for a property for leasing by means of a flexible and clear electronic platform.
