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"Ejar" Announces Activating Payment via "Sadad" Service Monthly

Sunday, 22 July 2018

The "Ejar" program of the Ministry of Housing launched the electronic payment feature via the "Sadad" service. This feature allows tenants to pay rent electronically and choose the appropriate payment frequency, whether monthly, quarterly, semi-annual, or annual. It was clarified that the launch of this service offers numerous conveniences to all rental process parties, as it helps facilitate the payment process for tenants while streamlining the collection process for lessors.

"Ejar" explained in a press statement today that this service, provided through the "Electronic Network for Rental Services," enables electronic rent payment via the "Sadad" service, eliminating the need for cash transactions between contract parties (lessor and tenant), which were previously processed through accredited real estate brokers. The statement emphasized that electronic payment serves as official proof of rent payment. In addition, the service simplifies financial collection procedures, supports monitoring of financial transactions, and safeguards the rights of all parties involved in the rental process.

This step comes as part of implementing Council of Ministers Decision No. (131), which established the Electronic Network for Rental Services to facilitate rental transactions, ensure their documentation, and enhance trust between all parties. The decision also mandated registering mutual commitments between lessors, tenants, and real estate brokers in the rental housing sector and instructed the Ministry of Housing to coordinate with the Saudi Central Bank to arrange for the provision of the electronic payment service for all rental contracts executed via the network and to make payment details accessible.

The payment cycle and electronic payment services are designed for both lessors and tenants. Among the key requirements for enabling the service is that lessors must have an account in the Electronic Network for Rental Services, where all relevant data, including their International Bank Account Number (IBAN), must be entered.

It is noted that the Ejar program was officially launched on 12 February 2018 to achieve several objectives through which the Ministry of Housing seeks to regulate and sustain the real estate rental sector and safeguard the rights of all rental process parties. These objectives materialized in the introduction of the unified rental contract, which is treated as an executive instrument that minimizes potential disputes and guarantees their quick and easy resolution. The electronic network offers numerous additional benefits to rental process parties, such as electronic payment, issuing electronic receipt and payment vouchers, ensuring fulfillment of maintenance obligations, processing bill payments, and other features that the Ministry of Housing continues to develop and implement.