Introductory Meeting on Unified Rental Contract for Commercial Real Estate Sector

The "Ejar" program, one of the Ministry of Housing programs, held on Tuesday, 25 June 2019, corresponding to 22 Shawwal 1440 Hijri, in Riyadh, an introductory meeting on the unified rental contract for the commercial real estate sector in cooperation with Riyadh Chamber. Ejar extended invitations to real estate brokers in the Riyadh region, along with several stakeholders and those interested in the real estate sector, including investors, brokers, property owners, writers, and media personnel. The meeting was attended by over 400 participants.
This meeting was part of a series of introductory sessions on the Electronic Rental Services Network conducted by the Ejar program across several cities in the Kingdom. The initiative aims to qualify workers in real estate brokerage establishments, emphasize the importance of adhering to real estate regulations and laws, and enforce the use of the unified rental contract, which has been made mandatory for both residential and commercial sectors.
The Strategic Performance Manager in the Ejar program, Professor Abdulrahman bin Mohammed Al-Sammari, delivered a detailed presentation on the program and the unified rental contract for the commercial real estate sector, which was initially launched in December 2018 on a non-mandatory basis, with mandatory implementation starting on 15 May 2019.
Al-Sammari explained that the commercial rental contract includes several additional benefits. These benefits include enabling Saudi citizens, commercial establishments, or associations holding a commercial registration to authenticate unified electronic rental contracts approved by the Ministry of Justice across Saudi Arabia, facilitated by accredited real estate brokerage establishments. The contract also features a conditional registration option, allowing contracts to be recorded with a specified grace period before activation. It encompasses a wide variety of property types, such as commercial showrooms, offices, warehouses, shops within and outside shopping centers, kiosks inside and outside commercial centers, and other types of commercial real estate to be added progressively. Tenants also have access to additional privileges, such as the ability to sublease, change the commercial registration or activity after updating information in the system. The network’s unified contracts also provide general advantages, such as ensuring all parties’ rights, clearly defining obligations, and treating the contracts as executive bonds recognized by the Ministry of Justice, which helps reduce disputes in the real estate rental sector, decrease the number of court cases and litigation times, and regulate the work of brokerage establishments to improve services.
It is worth noting that the Ejar program received extensive positive feedback during the initial launch of the unified rental contract for the commercial real estate sector. Feedback included requests to expand the network to include additional property types, such as industrial, agricultural, and investment real estate.
The introductory meeting on the unified rental contract for the commercial sector generated highly positive responses, with attendance exceeding expectations. This reflects the growing interest in the commercial rental contract and its role in the real estate rental market. The event was attended by real estate brokers, local and international investors, and real estate enthusiasts of both genders, representing real estate, legal, and commercial committees, along with multiple media and press organizations.
During the meeting, organizers received hundreds of contributions ranging from suggestions and commendations for the program’s role in organizing the real estate market to inquiries about the program’s mechanisms and updates to the commercial contract. There were also numerous calls to hold similar meetings at various times and locations.
It should be noted that Ejar provides electronic tools and solutions contributing to facilitating work procedures in the real estate rental sector, including electronic bonds enabling their use through the electronic system to dispense with paper contracts and documents, facilitating electronic rental payment follow-up through registered data monitoring, alerts and notifications service, in addition to support and assistance services through multiple communication channels (telephone and electronic).