The Real Estate investment funds are allowed to practice the sale of Real Estate units on the map

17 Nov 2013
 
The Ministry of Commerce and Industry represented by the General Secretariat of the sale committee of Real Estate units on a map - an entity authorized under the Council of Ministers Resolution No. 73 dated  12/03/1430 AH, granting licenses for Selling on the map. Starting from now, it has been allowed for Real Estate investment funds to practice the activity of selling Real Estate units on the map, this is after reaching an agreement with the capital market authority for putting a formula for the general framework that governing the investment funds which are interested in doing this activity, this comes as an extension to the decision of the Council of Ministers issued in this regard, and the list of Real Estate investment funds issued by the CMA Board .

The provisions of the agreed resolution included that the certified public accountant and the engineering consultant accredited by the fund are sufficient. in accordance with the provisions of the list of Real Estate investment funds that the authorized person (Fund Manager) should submit to the Committee of selling Real Estate units on a map annex agreements with the chartered accountant and the engineering consultant supervising the project including a commitment to the requirements of the decision of the Council of Ministers and the organizing list for the sale of Real Estate units on the map.

The Secretariat explained that the new regulatory framework for the Real Estate investment funds licensed by the Capital Market Authority has allowed them to exercise Selling Activity on a map via authorized person in accordance with commitments and controls contained in the Council of Ministers decision, the decision will pump more Real Estate units in the Saudi market.

The sale of Real Estate units activity or the sale before or during the early phase of construction is considered a way to own the property, which allows the buyer to get the property at a lower cost, and also allows the Real Estate developer to obtain direct fund through the payments of buyers.

It is worth mentioning that the control rules of selling Real Estate units on a map aim at  protecting the rights of all  parties, especially the buyers, through the marginalization on the land property record in favor of the MCI at the court of Justice , as well as through opening an account called ( Warranty Account) by the developer and to be  special for the project to facilitate the process of buyers deposits and disbursements from the escrow account on a project that has obtained a license through periodic reports to be submitted by the Secretary of the account ( the bank ) and the engineering consultant and the chartered accountant . No disbursement is allowed from the account except under the issuing document approved by the engineering consultant and chartered acco​untant for the project.

The MCI  represented by the Committee of selling Real Estate units on a map and its General Secretariat , under the guidance of His Excellency The Minister of MCI Dr. TAWFIG FAWZAN ALRABIAH, is currently re-examining and developing all procedures and regulations related to the  projects of selling Real Estate units on a map according to its powers and in cooperation with the relevant authorities , so as to ensure that the these procedures and supporting systems are encouraging  the Real Estate development projects of all types:residential, commercial, industrial and tourism , and others. For communication via e-mail:   OSC@mci.gov.sa
Last Modified 26 Dec 2018
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