JUNE. 2017
HOW TO BUY IN SAUDI ARABIA
HOW TO BUY IN | SAUDI ARABIA
What should I know about purchasing property in Saudi Arabia?
Price is negotiated between buyer and seller or through facilitators such as real estate
brokers or lawyers.
Foreigners are allowed to own real estate, but are subject to approval of the licensing
authority.
Foreign investors can purchase property for construction and investment, but this also
requires prior approval.
Foreign ownership is forbidden in Mecca and Medina.
What is the process for registering property in Saudi Arabia?
The process of registering property in Saudi Arabia generally takes no more than a couple
of days and has three main components:
1- The buyer conducts a title search on the property through the First Notary Public
Department.
• The procedure is conducted by the buyer to verify that the details of the property deed
provided by the seller match those in the records of the agency. In order to have access to
this information, the buyer requires authorization from the seller. This procedure is done to
obtain an ocial detailed description of the property, and to check if any encumbrances
are registered on the property.
2- The buyer and seller reserve an appointment with a notary public online.
• In order to request a transfer, parties should request an appointment online at
www.moj.gov.sa; the appointment reservation is immediate.
• On the scheduled day, the buyer and seller proceed to the 1st window of the First Notary Public
Department. Employees will check that all necessary documents are present and correct.
The necessary documents are as follows:
- Identification cards
- Certified Check
- Deed/proof of ownership
- Original copies of the articles of association. (If Required)
- Original copy of the Certificate of Registration. (If Required)
- Proof of power of attorney. (If Required)
HOW TO BUY IN | SAUDI ARABIA
3- The notary issues the deed and parties sign before the notary.
• Parties first check in at the front desk and are given a room number where the transfer
will happen. The notary then retrieves the necessary documents, does a final check, and
approves the transaction and the change of owner’s name. The buyer then hands the check
to the seller and a new deed is issued. This deed, with the Notary’s signature, is handed
to the buyer while another copy containing both parities’ signatures is archived at the
Notary
Is it possible to finance property in Saudi Arabia?
Saudi Arabian banks or mortgage companies may lend buyers up to 85 percent of the
value of a home, depending on the client criteria.
Are there more/less tax advantageous ways to purchase a property in Saudi Arabia?
No.
Is a property inspection report required?
The seller is not required to provide an inspection report to the buyer. The buyer may
conduct the inspection at his/her expense.
Are there any fees on the purchase of property from the land registry?
A fee of 500 S.R is required for the transfer of ownership for a residential unit or land,
moreover a fee of 5,000 S.R is required for the transfer of ownership for a commercial
building or land.
How much are the brokerage fees?
Per the regulations in Saudi Arabia, the brokerage fees cannot exceed 2.5% of the listing
price of property sold, whether paid by buyer or seller.
How can you help me buy property in Saudi Arabia?
At John Taylor we start with a consultation to ascertain your needs and criteria. After
identifying your requirements, we will begin search for properties that meet these
requirements to provide you a wide selection to choose from. Once you select a property,
we will manage the entire process, ensuring a smooth transition from prospective buyer to
property owner.
JOHN TAYLOR RIYADH
Olaya Main Street
P.O.BOX 301406
11372 Riyadh, Saudi Arabia
+966 11 293 24 64
THE GREATEST TRANSACTIONS
ALWAYS BEAR THE SAME SIGNATURE
