Council of Ministers’ Resolution on Electronic Registration of Leases

Council of Ministers’ Resolution No. 405 dated 22/09/1437

The Council of Ministers,

Within its authority,

Upon perusal of the file received from the Royal Court No. 21291 dated 06/06/1434, containing the letter no. 3092  by His Excellency the President of the Shura Council dated 29/05/1434, regarding the regulations draft for deciding on cases of tenants’ absenteeism or escape with payments unpaid and leased units closed;

Upon perusal of the Law of the Judiciary, issued by the Royal Decree No. M\87 dated 01/09/1428;

Upon perusal of the Law of Enforcement, issued by Royal Decree No. M\53 dated 03/08/1433;

Upon perusal of the Council of Ministers’ Resolution No. 334 dated 03/07/1398, issued in respect of the Regulations for Organizing Real Estate Offices;

Upon perusal of the Council of Ministers’ Resolution No. 131 dated 03/04/1435;

Upon perusal of the minutes of meetings: No. 563 dated 10/15/1434, No. 19 dated 07/01/1435, No. 361 dated 06/09/1435, No. 220 dated 14/04/1436, No. 646 dated 10/14/1436, and No. 27 dated 01/07/1437, prepared at the Bureau of Experts at the Council of Ministers;

Upon perusal of the Shura Council's Resolution No. 19\12 dated 20/05/1434;

And upon perusal of Recommendation No. 2544 of the General Committee of the Council of Ministers dated 09/03/1437,

Hereby decides as follows:

[I] The real estate brokers - licensed brokers – are bound to register all leases for residential and commercial units electronically through the electronic network approved by the Council of Ministers’ Resolution No. 131 dated 03/04/1435, otherwise they will be subject to the sanctions stipulated in the Regulations for Organizing Real Estate offices, issued by Council of Ministers Resolution No. 334 dated 07/03/1398.

[II] One or more committees shall be formed in each province or governorate – as per the case – by virtue of a decision from the Minister of Housing, including representatives of: the Ministry of Interior (Emirate of the Province or the Governorate), the Ministry of Justice, the Ministry of Housing and the Ministry of Labor and Social Development (Social Security Agency), in addition to a representative of a charity or an association concerned with housing. The mission of the committee (s) shall be to consider cases where the tenant is a Saudi national unable to pay the rent or evacuate the leased unit, either because of his imprisonment, illness, death, or lack of financial capacity, according to the following arrangements:

1. The committee shall - within thirty days of being notified by judge-executive of the Saudi tenant’s case - decide on the case, either by payment of rent on his behalf, or providing suitable housing or support to him, according to governmental and private housing programs. It is the responsibility of the Ministry of Housing to provide housing for those in need in different areas, provided that the tenant’s inability to pay may not allow him priority over the others registered in the residential support programs at the Ministry of Housing.
2. In case the landlord requests evacuation of the leased unit, the committee shall consider providing the tenant quickly with a housing allowance adequate for his condition.

[III] The Ministry of Housing shall prepare and implement a program to ensure provision of support to citizens unable to pay the rent. This program shall be funded from the Government budget allocations, subsidies, grants, endowments, and from Ejar network returns, based on agreement between the Minister of Finance and the Minister of Housing.

[IV] The Ministry of Housing shall report to the Council of Ministers, after two years of the application of this resolution, on the obstacles and difficulties revealed by the application, and shall propose appropriate solutions.

Prime Minister