Ministry of Housing Launches Unified Rental Contract Format

The Ministry of Housing, represented by the "Ejar" program, has launched the unified rental contract format, which aims to facilitate rental transaction procedures, document them, and enhance trust between parties. It also seeks to register mutual commitments between lessors, tenants, and real estate brokers in the rental housing sector, with registration and documentation of these agreements between the parties carried out automatically through the Ejar network.
The Ejar program, in its format launched by the Ministry, is designed to be the main driver for development, sustainability, and building trust to achieve balance in the real estate rental sector. This is accomplished by organizing and streamlining sector procedures through neutral and supportive systems and mechanisms, ensuring rights are protected and the sector remains balanced, in accordance with safe and accurate standards.
The contract in its initial form includes rental contract data, along with details about the lessor, the tenant, or their representatives. It also contains information about the real estate establishment and the broker, as well as title deed data, property details, and rental unit information.
The announced contract stipulates detailed financial information, payment schedules, and obligations of all parties, as outlined in sixteen articles. The contract is accompanied by a detailed table clarifying specific fields referenced within it.
The rental contract introduced by the Ministry formally documents the rights of all parties (tenant, lessor, and real estate broker). It also includes the drafting of unified rental contracts that can serve as executive instruments, meeting the needs of beneficiaries. These contracts will act as a tool for creating policies and regulatory procedures for accrediting and qualifying real estate brokerage establishments, ultimately aiming to enhance sector performance, increase its contribution to the national GDP, and reduce the volume of disputes related to the real estate rental sector.
General Supervisor of Rental Sector Regulation, Engineer Mohammed Al-Bati, stated that the "Ejar" program provides real estate brokerage establishments with several advantages that brokers can benefit from. Foremost among these is regulating the real estate brokerage profession, as the program only accepts contracts issued by registered brokers. It also offers advanced tools to verify tenant and lessor data accuracy, as well as title deed authenticity, helping to reduce potential disputes. Furthermore, the program delivers several services, including electronic payment of rental amounts, periodic notifications about financial transactions, and important alerts. Each real estate broker is also given a dedicated database to store and retrieve all contracts processed through the system electronically, eliminating the need to handle and store paper documents, along with other additional advantages.
The Ministry of Housing requires that members of the network be licensed and qualified real estate brokers. The Ministry has developed regulations in coordination with the Ministry of Commerce and Industry to ensure this requirement is implemented appropriately. Network members are authorized to provide brokerage services for rental housing contracts through the platform, verify customer identities, conduct credit checks, and register electronic rental contracts in compliance with the requirements set by the Ministry in cooperation with relevant authorities.
Once these conditions are met, all rental contracts concluded through the network and electronically signed by registered members are considered legally documented contracts in terms of proof and enforcement, in accordance with the relevant Council of Ministers resolution.
"Ejar" is one of several initiatives launched by the Ministry of Housing as part of its efforts to organize the Kingdom’s housing market. It operates through an advanced electronic network offering integrated solutions for the real estate rental sector and bringing together all rental process parties in a single virtual platform. The system manages relationships between all parties, safeguards the rights of tenants, lessors, and brokers, and ensures optimal use of rental properties while enforcing adherence to contract terms. The platform offers a clear, user-friendly electronic mechanism, including the activation of the unified rental contract, which guarantees the rights of all parties. To view the unified rental contract, please click here.