The rights and obligations of the beneficiaries and developers in projects relating to the  sale or lease of real estate units on the map are codified in decision number 1 – 220, dated 9-3-1439H, corresponding to 27-11-2017G, based on measures issued by  Council of Minister Resolution No. 536 dated 4-12-1437H.     

In giving reassurance to mutual contractual relations between the parties, Article 3  requires the developer to initiate and complete the work by the due date, follow up on the implementation of the work entrusted  to subcontractors in accordance with   the  approved  technical specifications, and  handing over the unit to the beneficiary by the due date set forth in the contract in accordance with the approved technical specifications.    

Article 4 sets forth the developer’s obligation to enter into a contract with the beneficiary, which must include certain information such as: the developer’s name and address; the project name and total area; the warranty period related to foundation and concrete works; the warranty period related to the installations; a schedule of payments according to the progress of the work; the public services, the joint areas for the project between the buildings and the units, the boundaries of the beneficiary usufruct; the license number; the implemented unit net area and whether such area includes the land or the buildings without the land; the special requirements for the unit’s internal division; the amounts that are to be paid by the contractor to  the developer; the deposit; charges; commissions and costs of administrative services (if any), provided that  the total thereto shall not exceed more than 5% of the total contract price.

Article 4 further provides a penalty clause enforceable against the developer if the latter delays in handing over the unit beyond the agreed delivery date on a basis not less than 7% annually, calculated on a daily basis.

The area of the real estate unit according to the engineering plan attached to the contract, concluded with the beneficiary and registered in the projects register, shall be deemed the contracted area. If the beneficiary finds at the time of receiving the unit that the actual area of the unit is less than the contracted area, the purchase price or the lease of the unit shall be reasonably adjusted according to its actual area based on the  price recorded in the registry when the difference is more than 5% of the unit area. (Article 5 of Resolution No. 536).