Real Estate Authority Announces Legal Action Against Off-Plan Sales Violations in 14 Projects
The Real Estate General Authority announced the referral of the developers of 14 real estate projects to the Public Prosecution, after detecting violations related to the sale of off-plan real estate units (Real Estate Sale) without obtaining the required official licenses. These violations involved engaging in the activity of selling properties and receiving payments from buyers before securing the necessary official approvals, which constitutes a clear breach of the regulations and laws governing this activity in the Kingdom.
The Real Estate General Authority announced the referral of the developers of 14 real estate projects to the Public Prosecution, after detecting violations related to the Real Estate Sale of off-plan units without obtaining the required official licenses. These violations involved engaging in the activity of selling properties and receiving payments from buyers before securing the necessary official approvals, which constitutes a clear breach of the regulations and laws governing this activity in the Kingdom.
Legal Action Against Off-Plan Sales Violations
The authority explained that its inspection teams detected several of these illegal practices in multiple cities across the Kingdom, which represents a clear violation of the provisions of the Off-Plan Real Estate Sales and Lease Law and its executive regulations.
The authority confirmed that it is proceeding with legal measures against the violators, including the enforcement of penalties stipulated by the regulations, which may extend to referring those involved to the Public Prosecution. This comes as part of the authorities’ efforts to protect beneficiaries’ rights and strengthen trust and credibility in the real estate market in the Kingdom.
The authority also affirmed its continued efforts to intensify field and electronic monitoring of the real estate market, tracking various illegal advertisements and practices in coordination with relevant entities. These efforts aim to ensure full compliance with applicable regulations and legislation, enhance transparency and governance in the real estate sector, and support the development of a safe and stable investment environment.
The authority further stressed that it will not tolerate any unlawful practices that could undermine the credibility of the real estate market or affect the rights of beneficiaries and market participants. It stated that strict legal measures will be taken against those responsible for off-plan sales violations, while continuously monitoring and addressing any potential misconduct.
In the same context, the authority urged real estate developers to fully comply with the regulations governing the sale and lease of off-plan real estate projects, emphasizing the importance of obtaining the necessary official licenses before announcing, marketing, selling, or receiving any payments from buyers.
The authority also announced on its official website a table outlining the classification of violations related to the Off-Plan Real Estate Sales and Lease System, including the penalties imposed for each violation in accordance with the executive regulations.
At the conclusion of its statement, the authority urged investors and market participants to verify the legality of project licenses through official approved channels before proceeding with any purchase or transferring funds. It also encouraged reporting any off-plan sales violations or unlawful practices that may affect the credibility of the real estate market, in order to safeguard the rights of all parties involved.
Frequently Asked Questions
Can paid amounts be recovered if a project is discovered to be unlicensed?
Yes, the buyer has the right to file an official complaint and request a refund of the paid amount. In most cases, the matter is reviewed according to applicable regulations to protect the buyer’s rights.
Which authority is responsible for documenting off-plan property sales contracts?
Contracts are documented through officially approved entities such as real estate documentation platforms linked to government authorities to ensure the legality of the process.
Is there a specific timeline for implementing off-plan real estate projects?
Yes, each project has a specified timeline within its license, and the developer must comply with it to avoid penalties or the withdrawal of the license.
