Handover

Handover is the act of enabling the buyer or owner to actually possess and use a property once its construction or fit-out is complete, usually documented in a handover report recording its condition and conformity with the agreed specifications. It is done either by placing the property in their hands or by clearing the way for them to take it without obstruction. Handover is distinct from title transfer (ifragh) in the registered deed; either may come first depending on the contract. In Saudi Arabia, the Civil Transactions Law obliges the seller to deliver the property in the condition it was in at the time of sale, with delivery costs on the seller unless agreed otherwise (Art. 321); delivery covers accessories and anything permanently attached (Art. 322), and is made by placing the property in the buyer's possession or by clearing it for them after notice (Art. 324). In off-plan projects licensed by the Real Estate General Authority (REGA, the Wafi program), the model sale contract must set delivery dates to the day, and a developer who is late for reasons within its control owes compensation of at least the fair rental value of the unit as assessed by an accredited valuer, or at least 2% of the sale price per year for developed land. No new building may be occupied until the municipality issues an occupancy certificate. In practice, handover is a turning point: possession passes and important clocks start. The buyer must inspect the property as soon as possible and notify the seller of any defect within a reasonable time, otherwise it is deemed accepted (Art. 340), and a defect-warranty claim is not heard after 180 days from delivery unless the seller committed to a longer warranty (Art. 344). It is therefore wise to inspect with an engineer, record snags with photos and dates in the report, and tie final acceptance to their repair.