Contract Fees
Synonyms: Ejar Fees، Contract Registration Fees، Documentation Fees
Last updated: 2026-05-06
Short Definition
Costs of authenticating contracts in Ejar, 125 SAR annually for residential and 200 SAR for commercial, paid by lessor or real estate office.
Overview
Legal Basis
Ejar platform service fees are determined by a decision from the General Authority for Real Estate (REGA) and published on its official website. VAT on fees is applied per the VAT Law issued by Royal Decree No. (M/113) of 1438 AH.
Practical Example
A villa owner leases it for SAR 50,000 annually to a residential tenant. When documenting in Ejar: service fee SAR 250 + VAT SAR 37.50 = SAR 287.50. The contract stipulates the tenant bears 100% of fees (common). The fees are added to the tenant's first invoice. After a year, at renewal: same fee SAR 287.50. If an amendment is requested mid-year (e.g., payment mechanism change): additional SAR 75 fee. Total for first year with renewal: SAR 575. Had it been a commercial contract, VAT on rent itself (50,000 × 15% = SAR 7,500) would be added, borne by the commercial tenant.
Common Mistakes
- ✗Failing to specify fee distribution in the contract — creates dispute upon fee invoice.
- ✗Considering contract fees as part of rent — they are separate service fees not calculated on original rent.
- ✗Not calculating VAT when estimating contract budget — adds 15% to fees and to rent (for commercial).
- ✗Assuming amendments are free — large amendments may require additional fees.
- ✗Neglecting fee receipts — may be needed later for ZATCA purposes (for commercial contracts).
International Differences
In the UAE, contract registration fee is 5% of annual rent value (very high compared to Saudi Arabia). In Turkey, fees are limited if the contract is registered with municipality. In Egypt, registration is optional and fees are nominal. The Saudi advantage: low unified fee (~SAR 287) regardless of contract value, encouraging documentation of even small contracts.
