The Standard Contract

The Standard Contract is a binding executive instrument executable before the judicial and executive bodies, such as the Ministry of Justice. Establishing the Standard Contract shall be a vital factor for encouraging real estate developers to invest in the real estate sector and to provide high-quality residential units at best prices, all of which will reduce the tenancy rates, rectify the real estate market conditions and decrease disputes between the parties associated with the lease.

Through Ejar network, the Standard Contract has been electronically integrated with a number of Government agencies and services, such as the National Information Center, the Ministry of Commerce and Investment and the Ministry of Justice. The integration is underway with other agencies such as the Ministry of Labor and Social Development, the Saudi Post, the National Water Company and the Saudi Electricity Company.

The key information of the Standard Contract includes:

• Personal information and address of the landlord, the tenant and the real estate broker;
• Date of contract beginning and end;
• Rent, security deposit amount and payment method

General terms, which include the obligations of both the landlord and the tenant.