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Unified Contracts and Network Services Reduce Contractual Disputes and Safeguard Parties’ Rights

Thursday, 4 August 2022

The "Ejar" program emphasized the distinct advantages of its unified contracts, which are authenticated through the Electronic Rental Services Network. These contracts are designed to preserve the rights of all parties involved in rental agreements and integrate seamlessly with several relevant government entities.

Ejar explained that its unified contracts include numerous services and features that help protect the rights of stakeholders, minimize disputes in the real estate rental sector, and enhance transparency. The unified contracts achieve these objectives by documenting rental agreements, registering detailed data about rental properties, and enabling their use as enforceable instruments. This initiative supports the program’s fundamental goals of streamlining procedures in the real estate rental sector, increasing trust, and maintaining balance, thereby safeguarding the rights of all parties and encouraging investment.

Among the benefits offered by  Ejar is the ability to electronically authenticate contracts through the platform, with both residential and commercial unified contracts treated as enforceable legal instruments that protect the parties’ rights and can be submitted in judicial proceedings in case of disputes. The platform also allows parties to register contractual events (such as a contractual status update) within the network. Moreover, the unified contracts offer flexibility: there are fixed-term agreements that conclude on the specified end date, as well as automatically renewing contracts, which can be terminated or amended by one party upon notifying the other at least 60 days in advance. Additionally, contracts can be customized with supplementary clauses to meet the needs of both parties, and even non-standardized commercial contracts can be documented within the platform. Although these are not enforceable like standardized agreements, they still offer full access to all the services and benefits of Ejar.

The program offers a wide array of continuously evolving services aimed at reducing disputes and protecting parties’ rights. Among these are electronic check-in and check-out services that document the property’s condition at handover, and the Rental Behavior feature, which elevates quality and transparency in dealings between landlords and tenants. Furthermore, strategic partnerships with service providers enable tenants to transfer utility accounts under their names, while all financial transactions are authenticated through the network’s electronic payment system. Payment options are diversified, with channels like  "Mada" and "SADAD" allowing full, partial, or future rental payments. Electronic payments are now recognized as official proof of payment, reducing reliance on cash transactions and improving user convenience.

It is worth noting that Cabinet Resolution No. (292), dated 16/05/1438 AH, concerning strengthening trust principles in the rental housing sector, stipulates that any rental contract not registered within the Electronic Rental Services Network is considered invalid and unenforceable in administrative and judicial contexts. The resolution also mandates that the Ministry of Justice and the Ministry of Municipal, Rural Affairs and Housing establish the requirements and criteria for validating a contract within the system, including scenarios in which one party refuses registration.