Contracts & Leasing

Contract Handover

Synonyms: Property Handover، Handover Inventory، Move-in Inspection

Short Definition

Procedure of receiving property from landlord or returning it at contract end, including a report documenting property condition and meter readings.

Overview

Property handover under Saudi law is the actual procedure of transferring property possession from lessor to lessee at contract period start, or from lessee to lessor at period end. It's a fundamental step because it is how the lessee is enabled to use the property (Article 416 of the Civil Transactions Law) and it documents property condition at that moment. The handover includes: drafting a handover/receipt record signed by both parties, documenting property condition with photos and video (very important), handing keys and remote controls (remotes, smart door codes), recording meter readings (electricity, water, gas), noting any existing defects and specifying who's responsible for repairing them, and handing property documents (user manual, emergency numbers). The Civil Transactions Law requires handing over the property in condition fit for the agreed use. The lessor is liable for defects that prevent or reduce use, except those customarily tolerated or known to the lessee at contracting (Article 425), and the lessee must return the property at lease end in the condition received, except for normal wear (Article 435); so every existing defect should be recorded in writing. Neglect in handover documentation creates costly disputes at period end (who's responsible for certain damage? Did it exist before or after?). Ejar offers a receipt and handover service: a form linked to the lease that both parties fill in at its start and end, where a party answering «no» can add notes and photos; the form must be completed within 7 days, letting that period lapse counts as implied approval of the unit’s condition, and the refund of any security deposit held by Ejar, or deductions from it, is based on it.

Legal Basis

Property handover is based on the Civil Transactions Law issued by Royal Decree No. (M/191) of 1444 AH, whose Article 416 requires the lessor to deliver the leased property and its accessories in a state fit for the full intended use, and whose Article 435 requires the lessee to return it at lease end in the condition received, except for normal wear. Ejar provides a receipt and handover form linked to the lease that both parties fill in. Under Article 12 of the Real Estate Brokerage Law, the security deposit is held by the Real Estate General Authority (REGA) or its delegate, and a dispute over the deposit and damage assessment is first resolved by experts designated by REGA if both parties agree, with fees split equally; otherwise either party may go to the competent court. A documented handover record is important evidence in either route.

Practical Example

A villa owner in Riyadh hands it over to a new tenant. Designated handover day: Sha'ban 1. At the time, both parties meet at the villa, begin a comprehensive tour. The tenant uses his phone to photograph: each room from 4 angles, bathrooms with floor and tile condition, kitchen and appliances, exterior facade and garden, electricity and water meters with current readings. They discover a scratch on the lounge door, note: 'scratch existed before receipt'. The owner hands the keys (3 copies), AC codes, gate lock code, emergency numbers. They draft a written record containing all this and sign it, and each of them fills in the receipt form on Ejar within its deadline, adding notes and photos. Upon vacating after a year, any damage claim is compared with this record.

Common Mistakes

  • ✗Handing over property without a written record, or leaving the Ejar receipt and handover form unfilled until its deadline passes, which counts as implied approval of the unit’s condition — the biggest mistake, opening the door to end-of-period disputes.
  • ✗Settling for few photos — document everything, even what seems unimportant.
  • ✗Neglecting meter readings — may bear an electricity/water bill prior to your receipt.
  • ✗Not receiving all keys and remotes — may be accused later of losing them.
  • ✗Handover with tenant present only without owner (or agent) — the record loses much of its evidential weight without the other party’s acknowledgement.

International Differences

Practice varies by country. In the UK, for example, it is known as an Inventory Report; it is not a legal requirement but is strongly recommended, and it may be prepared by the landlord, the agent or an independent inventory clerk. In Saudi Arabia, Ejar provides a receipt and handover form linked to the lease that both parties fill in, and the refund of any security deposit held by Ejar, or deductions from it, is based on it.

FAQs

Is the handover record legally mandatory?▾
We are not aware of a provision requiring a written record in a specific form, but it is practically essential. Ejar has a receipt and handover form linked to the lease that must be filled in within 7 days; letting that period lapse counts as implied approval of the unit’s condition, and the deposit refund is based on it. Without documentation, proving property condition at receipt becomes much harder.
How many photos are sufficient to document the property?▾
The more the better. For a medium apartment, dozens of photos are normal. Photograph each room from multiple angles, every defect however small, bathrooms and kitchens in detail, and appliances.
What if the lessor refuses to sign a handover record?▾
Ask for a signature; if refused, record your notes and photos in the receipt form on Ejar within its deadline, since it is linked to the lease and visible to the other party, and keep dated copies of the photos before moving in.
Is a handover record required upon vacating?▾
Yes, same importance. Document property condition upon leaving with same precision as receipt, get the lessor’s signature acknowledging sound property receipt, and fill in the handover form on Ejar within its deadline, since the deposit refund or any deduction is based on it.
Can I document the handover on Ejar after contract signing?▾
Yes, through the receipt and handover service: both parties fill in a form linked to the lease at its start and end, via the Ejar network or a link sent by SMS. The form must be completed within 7 days, and letting that period lapse counts as implied approval of the unit’s condition, so do not delay it.

In Other Languages

Arabic
تسليم العقد

إجراء استلام العقار من المالك أو تسليمه عند انتهاء العقد، يتضمن محضر يوثق حالة العقار والعدادات.

English
Contract Handover

Procedure of receiving property from landlord or returning it at contract end, including a report documenting property condition and meter readings.

Turkish
Sözleşme Teslimi

Sözleşme başında ev sahibinden mülkü alma veya sözleşme sonunda iade etme prosedürü; mülk durumunu ve sayaç okumalarını belgeleyen tutanak içerir.

Related Terms

Amlakire

About Amlakire

Amlakire is an integrated Saudi real estate management system, supporting agencies and owners in managing rentals, maintenance, and reports with high efficiency, preparing lease data for documentation on the Ejar platform, and compliant with Kingdom regulations.

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