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Launch of the Commercial Rental Contract Documentation Service

Tuesday, 1 January 2019

The Ministry of Housing’s “Ejar” program has launched the commercial rental contract documentation service for beneficiaries through its electronic network, introducing it “optionally” as a first phase. The Ejar team is actively receiving feedback from commercial rental contract parties—including real estate brokers, lessors, and tenants—along with their observations on the service through available communication channels. This is part of a commitment to continuous development and improvement, ensuring the service reaches the highest standards before moving into the mandatory phase at a later stage.
Engineer Mazen Al-Dawood, General Supervisor of Real Estate Regulation, explained that with more than 10,000 licensed real estate brokers operating across the Kingdom, tenants and lessors can now conclude contracts electronically in less than eight minutes. The service features a unified commercial sector rental contract, covering a wide range of commercial real estate, including all commercial units both inside and outside commercial centers. Rental process parties—the tenant, lessor, and real estate broker—can easily build rental contracts by activating numerous contract clauses and determining responsible parties in a smooth, flexible, and efficient manner, ensuring that all parties’ objectives are met. Work is currently underway to draft additional clauses tailored to the industrial and agricultural sectors to meet the needs of all beneficiaries.
Al-Dawood emphasized that the unified contract was designed and refined after consulting a wide range of stakeholders, including investors, tenants, property owners, and commercial real estate management companies, through numerous workshops held during 2018. Direct communication with beneficiaries, as well as discussions during meetings organized in chambers of commerce and industry, also contributed to shaping the contract.
Through its residential and commercial contract documentation service, Ejar program aims to simplify rental procedures, ensure proper documentation, and strengthen trust between all parties. The initiative registers mutual commitments between lessors, tenants, and real estate brokers, guarantees the rights of all parties, and provides unified rental contracts tailored to beneficiaries’ needs. Furthermore, it seeks to enhance the performance of the real estate rental sector, increase its contribution to the GDP, and reduce the volume of disputes in the sector.  For more information, visit the program’s official website at ejar.sa or contact the toll-free number 920005226.
Ejar program operates through the Electronic Network for Rental Services to ensure the continuous and ongoing improvement of its services, relying on feedback and information gathered during awareness tours conducted by supervision and oversight teams. Among the services developed and introduced is the quick rental contract registration service, which allows contracts to be registered in just eight minutes, as well as rent payment through the “Sadad” service. The network also offers flexible payment schedules, including monthly payment options, and provides contractual terms for residential rental agreements of three months or more. By registering rental contracts in the network, parties benefit from having their contracts documented, and once the mandatory phase is in effect, these documented contracts are considered executive instruments that facilitate litigation processes.
It is noteworthy that the Electronic Network for Rental Services was officially launched on 12 February. Registration of residential rental contracts in the network is now mandatory, in accordance with the Council of Ministers’ decision, which stipulates the enforcement of the Real Estate Office Regulations on real estate brokers who fail to comply. Penalties range from financial fines to temporary suspension or permanent license cancellation. Furthermore, several Council of Ministers’ decisions have been issued to link rental contract registration in the network with various government services, making the network the sole official reference for verifying the validity of residential rental contracts, which is required to access government services that demand proof of a rental contract as part of their requirements.