Real estate Q&A
Direct answers to the questions landlords, tenants and real estate offices in Saudi Arabia ask. Every answer starts with the conclusion and cites its official source and review date.
50 questions
Leases
- Is a lease that is not registered on Ejar valid?Not in the eyes of government bodies or the courts. Council of Ministers Decision 292 (16/5/1438H) states that a lease not registered on Ejar, the electronic network for lease services, is not treated as a valid contract producing administrative or judicial effects, and in a 2022 circular the Ministry of Justice told courts not to hear claims arising from such leases. The fix is to register it: the provisions issued by Royal Decree M/73 (2/4/1447H) require the lessor to apply for registration.
- If the landlord sells the rented property, does the lease end?No. The sale is lawful, but Article 428 of the Civil Transactions Law states that selling a leased property does not affect the tenant’s rights, so the tenant serves out the term at the agreed rent and conditions and the buyer becomes the lessor. On Ejar, a licensed real estate broker moves the existing leases to the new owner through the Change of Lessor service, without cancelling them.
- Can a tenant sublet a rented apartment in Saudi Arabia?Only with the landlord’s permission or later approval: Article 437 of the Civil Transactions Law bars a tenant from leasing all or part of the property, or assigning the lease, without it. Ejar’s unified lease has a tenant powers table stating whether the tenant may lease the unit to others; subletting without that power is a breach that can lead to termination by a court judgment. If the tenant has the power, the sublease is registered on Ejar as a new lease linked to the original lease number, from a licensed broker’s account.
- Can a lease be amended after it is documented on Ejar?A documented lease can be changed only by agreement of both parties or under a statutory provision (Civil Transactions Law Art. 94), and even then Ejar says the lease value cannot change after documentation: an agreed rent change applies to the renewed lease, not the active one. The main route is renewal (re-conclusion), where the landlord or broker changes the duration and financial terms and adds clauses, and the other party accepts from their own account. Changing the landlord, the tenant or the landlord’s bank account mid-term has its own Ejar services.
- Can you rent an apartment in Saudi Arabia without an iqama?As a rule, no, based on what Ejar publishes: its residential lease registration service lists individual tenants as citizens and residents, and its FAQ says signing the unified lease requires a national ID or a resident ID (iqama). If your iqama has not been issued yet, the alternative Ejar allows is for your employer to lease the unit in the company’s name, with a legal representative added. Under Council of Ministers Decision 292, a lease that is not registered on Ejar has no administrative or judicial effect.
- What is the unified lease contract and what are its key terms?The unified lease is the standard electronic contract on which leases are documented on Ejar, the platform supervised by the Real Estate General Authority (REGA); Ejar says using it is mandatory and describes it as an executive (directly enforceable) instrument. Once it is documented on Ejar, a landlord whose tenant stalls on payment can take it straight to the Execution Court through Najiz without first filing a lawsuit, whereas an unregistered lease has no administrative or judicial effect (Council of Ministers Decision 292). Its key terms cover the lease period and renewal, rent and the payment grace period, each party’s duties on use and maintenance, the security deposit, termination, and what can be enforced at the Execution Court.
- How are commercial leases different on Ejar?Commercial leases have had to be documented on Ejar since February 2020, like residential ones, but the fee is SAR 200 for the first year and SAR 400 for each additional year, and 15% VAT is added to the rent when the lessor is registered for VAT or required to register. The rule limiting rent payments to Ejar’s digital channels, which applies to new residential leases, does not cover them, and they have their own options such as the conditional lease and the non-unified commercial lease, which is not an executive instrument. As with residential leases, automatic renewal applies to them throughout the Kingdom, and the rent freeze applies inside the Riyadh urban area.
Renewal and rent increases
- How much notice is needed to not renew a lease in Saudi Arabia?A lease in Saudi Arabia renews automatically unless one party tells the other, at least 60 days before it ends, that they do not want to renew; this applies in every city to leases longer than 3 months. In the Riyadh urban area, a lessor may refuse a renewal the tenant wants only on specific grounds. Where the reason is that the lessor wants the residential property for personal use or for a first-degree relative, the Real Estate General Authority (REGA) has raised the lessor’s notice to at least 365 days; its decision names no city, and Ejar presents the rule as part of the Riyadh conditions.
- Can a landlord raise the rent when the lease is renewed?A landlord cannot raise the rent on their own, either during the lease or at renewal. Outside the Riyadh urban area, the landlord files a rent-adjustment request on Ejar at least 90 days before the lease ends; if the tenant accepts, the lease renews at the new rent, and if the tenant rejects it or does not answer before the final 60-day window, automatic renewal is cancelled and the lease ends on its end date. Inside the Riyadh urban area, rent increases on residential and commercial leases, existing and new, are banned for 5 years from 25 September 2025.
- Can a landlord in Riyadh refuse to renew a lease?Only on specific grounds. In the Riyadh urban area, for 5 years from 25 September 2025, a landlord may not refuse a renewal the tenant wants and require them to leave unless the tenant has failed to pay, the property has structural defects affecting its and its occupants’ safety confirmed by a technical report approved by the competent government authority, the landlord wants the residential property for personal use or a first-degree relative, or another case set by REGA’s Board of Directors applies. Fines start at 2 months’ rent and reach 12 months’ rent, and the lease must be renewed if the tenant still wants it.
- What is the Riyadh rent freeze and who does it cover?It is a ban on any increase in the total rent of residential and commercial leases, existing and new, inside the Riyadh urban area only, for 5 years starting 25 September 2025. A vacant unit that was let before cannot be re-let above the total rent of its last lease registered on Ejar unless the Real Estate General Authority (REGA) accepts the landlord’s objection, and for a unit never let before, the first agreed rent becomes its cap. Fines start at two months’ rent and reach 12 months’ rent, and the landlord must correct the rent.
- Does a lease renew automatically on Ejar?Yes. Since 25 September 2025, a lease longer than 3 months renews automatically in every Saudi city unless one party tells the other at least 60 days before the end that it does not want to renew, although inside the Riyadh urban area a landlord may refuse a renewal the tenant wants only on specific grounds. Ejar’s “automatic renewal” option is on by default in new leases, and the lease renews on the same terms, including the rent, unless the tenant accepts an adjustment request from the landlord; the renewal fee is taken from the landlord’s Ejar wallet.
Paying rent
- Can I pay rent in cash or by direct bank transfer outside Ejar?For new residential leases documented on Ejar since 15 January 2024, cash and direct bank transfers to the landlord are not accepted as proof of rent payment, because the Real Estate General Authority (REGA) recognises only payments made through Ejar’s digital channels. Those channels are Ejar’s payment page (mada card or Apple Pay) and SADAD using biller code 153. Commercial leases, and residential leases documented before that date, are not covered by this rule.
- Can a landlord charge a late-payment penalty on rent?A landlord cannot impose a fine for late rent on their own, and the unified residential lease published by Ejar has no late-fee clause: it provides a payment grace period and then the lessor’s right to terminate. Article 178 of the Civil Transactions Law lets parties fix compensation in advance, except where the obligation is a sum of money, and rent is a sum of money. The landlord can recover the unpaid rent through an execution request on Najiz; any daily fines the Execution Court may impose are not paid to the landlord.
- When does rent paid through Ejar reach the landlord’s account?Rent paid through Ejar’s digital channels reaches the lessor within 5 working days at most from the payment date, not counting Friday and Saturday. The full amount goes to the lessor’s Ejar wallet or bank account, and REGA confirmed in January 2024 that there is no fee on the rent. A few transfers take longer when bank account details are inaccurate and have to be verified again.
- Can rent be paid monthly on Ejar leases?Yes. Ejar lets rent be paid monthly, quarterly, every six months or annually, as the landlord and tenant agree when the lease is documented, and the payment schedule is built on the chosen cycle. Under the unified residential lease, a monthly payment has a 15-day grace period from its due date: the grace period is 15 days for any cycle shorter than 180 days and 30 days for a cycle of 180 days or more.
- How do I get a rent payment receipt from Ejar?If you paid rent through Ejar’s official channels (mada, Apple Pay or SADAD with biller code 153), you do not need to ask the landlord for a receipt: the system issues the receipt voucher automatically, and you can find it in your Ejar account under Finance (المالية), then the receipts page, after selecting the contract. A payment made outside the platform can get a receipt voucher, approved by the landlord, if the payment method in the lease allows it; on new residential leases since 15 January 2024, no payment outside Ejar’s channels is recognised.
Deposits and handover
- How do I get my security deposit back from Ejar when the lease ends?If your deposit is held on Ejar, you get it back through the receipt and handover form linked to the lease, which both parties fill in when the unit is handed back; if they agree there is no damage, or agree on its value, Ejar automatically returns the deposit or the balance to the tenant’s wallet, from where it can be transferred to a bank account. The form must be completed within 7 days, and if that period passes without it being filled in, this counts as implied approval that the unit is in good condition. If the parties disagree about damage, the dispute goes first to experts named by the Real Estate General Authority (REGA) if both agree, otherwise to the competent court.
- How much is the security deposit on a lease, and is there a cap?None of the official texts we reviewed sets a cap or a fixed amount for a lease security deposit: the Real Estate Brokerage Law and its Implementing Regulation do not fix an amount, and Ejar’s unified residential lease binds the parties to the percentage or amount they agreed. The deposit is optional, but if one is set in a lease documented on Ejar it must be held by the platform, and it is reserved from the tenant’s Ejar wallet when the lease is documented. The 5% limit in the Brokerage Law applies to earnest money (a down payment on a deal), not to the security deposit.
- When must the Ejar handover form be filled in, and what if it isn’t?For residential leases documented on Ejar, the receipt form is filled in within 7 days of documentation and the handover form within 7 days after the lease ends, by the lessor and the tenant (or their representatives registered on the lease), not the broker. If the period passes without the form being filled in, Ejar treats this as implied approval that the unit is in good condition. Anyone with a concern should therefore answer “No” to the item and attach notes and photos within the period, because the form cannot be edited once it is sent.
Ending a lease
- How do I cancel a lease documented on Ejar before it ends?A lease documented on Ejar binds both parties for its full term and can end early only by agreement, by a court judgment or order, or in a few listed exceptional cases. The easiest route is Ejar’s “termination by both parties” service: the landlord or the tenant files the request from their Ejar account, the other party approves it, and the service has no fee. If the other party refuses, Ejar cancels the lease one-sidedly only on an Execution Court order to vacate the property; other disputes go to the General Court through Najiz.
- Can a tenant end a lease early because of a job transfer or an emergency?A tenant cannot end a lease documented on Ejar on their own just because of a job transfer or an emergency, and moving out does not end it: the lease binds both parties for its full term. The simplest route is to agree with the landlord, then either party files a termination request on Ejar and the other approves it; the service is free. If the landlord refuses, Article 442 of the Civil Transactions Law lets the tenant seek termination for an urgent excuse relating to them, provided they compensate the landlord for the harm the termination causes.
Disputes and enforcement
- What can a landlord do if the tenant stops paying rent?If the lease is documented on Ejar, it is an executive instrument, so the landlord can go straight to the Execution Court with an execution request on Najiz, without filing a lawsuit, either to recover the unpaid rent or to evict. If the tenant still does not comply after being notified, the court applies compulsory measures such as attaching assets, reporting to credit bureaus and a travel ban. The current Execution Law applies until 27 October 2026 and the new one from 28 October 2026.
- How long does it take to evict a tenant in Saudi Arabia?Neither the current nor the new Execution Law sets an overall time for evicting a tenant; they set deadlines that run from the tenant’s notification of the Execution Court’s eviction order. Until 27 October 2026 the current law (M/53) applies: the enforcement officer goes to the property on the day after 5 days have passed since notification, and the start may be postponed by up to 30 days when necessary. From 28 October 2026 the new law (M/237) applies: if the tenant has not left within 5 working days of notification, the court immediately orders the competent force to act.
- What changes for landlords under the new Execution Law from 28 October 2026?The new Execution Law (Royal Decree M/237 dated 3/11/1447H) replaces the current law (M/53) from 28 October 2026; the current law keeps applying until 27 October 2026. The main changes for landlords: the tenant’s deadline after being notified of the execution order becomes 5 working days, after which attachment and credit-bureau reporting start unless the tenant gives a sufficient bank guarantee; a travel ban is ordered only at the landlord’s request; and for eviction the court orders the competent force to act as soon as the deadline passes.
- Can a landlord cut off electricity or water to a tenant who is late on rent?No. According to an Okaz report of 5 March 2022, Ejar stated that a lessor may not disconnect a tenant’s electricity, water or gas when arrears are due, and that in a dispute the parties can turn to the courts or the Saudi Real Estate Arbitration Center, depending on jurisdiction. The Civil Transactions Law requires the lessor to refrain from interfering with the tenant’s use of the property for the whole lease term (Article 423). If the lease is documented on Ejar, the lawful way to collect rent is an execution request at the Execution Court through Najiz.
- Can a landlord enter a rented apartment without the tenant’s permission?The Civil Transactions Law contains no provision giving the lessor a right to enter or inspect the rented unit during the lease; it requires him to let the tenant use it without obstruction and to refrain from interfering with that use for the whole term (Articles 416 and 423), from which it follows that entry should in principle be with the tenant’s permission, although no article says so in those words. The case the law says the tenant may not block is necessary repairs to preserve the property, if the lessor informed him a reasonable time before starting (Article 434). Neither the law nor the unified lease template sets this notice in days.
- Can a tenant be banned from travel over unpaid rent?Yes, but only by court order, not simply because the rent is late. If the landlord files an execution request based on a lease documented on Ejar and the tenant neither pays nor discloses enough assets within 5 days of being notified, the execution judge immediately orders a travel ban under the Execution Law that applies until 27 October 2026. From 28 October 2026 the ban is ordered on the landlord’s request once the enforcement deadline has passed, for up to 3 years, extendable on a new request to a total of no more than 6 years.
- How do I file an execution request for a lease on Najiz?The landlord files online on Najiz without visiting the court: log in through the National Single Sign-On, choose All Electronic Services, then the Enforcement package, then File an enforcement application, select the request type (financial to collect rent, or direct enforcement to evict) and attach a copy of the lease documented on Ejar as the executive instrument. You need a completed profile, an active IBAN linked to the applicant’s name and ID number, and, if an agent files, a power of attorney granting the powers “enforcement application” and “declaration”. The service is free; judicial costs are assessed after the request is decided and are normally borne by the tenant.
- How do I file a complaint against a landlord in Saudi Arabia?The route depends on the problem. Breaches of the statutory rental provisions, such as a landlord not applying to register the lease on Ejar, raising the rent inside the Riyadh urban area, or refusing renewal there outside the permitted cases, are reported to the Real Estate General Authority (REGA) through the Reports service on its website. Claims for money or for performance of the lease go to the General Court as a lawsuit through Najiz, or to the Execution Court if the tenant holds an executive instrument; there are no special committees for rental disputes.
Maintenance
Fees and taxes
- Who pays the Ejar lease documentation fee, the landlord or the tenant?The landlord bears the fee for documenting a lease on Ejar, and on the platform it can be paid only by the landlord or the real estate broker, not by the tenant. It is SAR 125 per contract year for a residential lease, and SAR 200 for the first year then SAR 400 for each additional year for a commercial lease. The broker’s commission is a separate matter, paid by whichever party hired the broker.
- How much does an execution request cost for rent claims?The Najiz service for filing an execution request is free, but the Judicial Costs regulation assesses judicial costs on the request: 2% of the amount claimed for unpaid rent, with a minimum of SAR 500 and a maximum of SAR 10,000, and a flat SAR 500 for a direct enforcement request such as eviction. The tenant bears them as the party executed against, unless the landlord is shown not to be entitled to all or part of the claim, in which case the landlord bears that share. Payment is not a condition for registering the request: the costs are finally assessed after it is decided and collected only once the objection period has passed.
- Is there VAT on residential rent in Saudi Arabia?No. Leasing residential real estate is exempt from VAT under Article 30 of the VAT Implementing Regulations, so no VAT is added to the rent of a flat or house let as a permanent home. The exemption does not cover hotels, serviced apartments or any building designed for temporary stays by visitors or travellers, nor commercial leases; these carry 15% VAT when the lessor is VAT-registered or required to register.
- Who pays the real estate transaction tax, the seller or the buyer?The seller, or more generally the person disposing of the property, is legally liable to pay the 5% Real Estate Transaction Tax (RETT) to the Zakat, Tax and Customs Authority (ZATCA) under Article 7 of the RETT Law. Seller and buyer may agree that the buyer bears the tax, but that agreement does not release the seller from liability towards ZATCA. The buyer becomes jointly liable with the seller if ZATCA establishes that the buyer caused the tax to go unpaid, for example by agreeing to declare a lower price than the real one.
- How do I use the first-home real estate transaction tax relief?The state bears the 5% Real Estate Transaction Tax (RETT) on the first SAR 1,000,000 of the price of a Saudi citizen’s first home, a maximum of SAR 50,000, under Item Five of Royal Order A/84 dated 14/2/1442H. To use it, the buyer issues a tax-bearing certificate on the Sakani platform and gives it to the seller, who registers the sale on the Zakat, Tax and Customs Authority (ZATCA) platform, where eligibility is checked automatically. The certificate is valid for 3 months, and the relief does not cover land, self-build or investment buildings.
- What is the real estate transaction tax law in Saudi Arabia?The Real Estate Transaction Tax Law levies a 5% tax on any transaction that transfers ownership of real estate in the Kingdom, or transfers its use permanently or for more than 50 years, whatever the property’s condition or use and whether or not the transaction is notarized. It was issued by Royal Decree M/84 dated 19/3/1446H, took effect with its Implementing Regulation on 10 April 2025, and is administered by the Zakat, Tax and Customs Authority (ZATCA). Real estate supplies subject to this tax are exempt from VAT.
- What are white land fees in Saudi Arabia and who pays them?The white land fee is an annual charge of no more than 10% of a plot’s value, levied on developable vacant land inside the urban boundary when it lies in a geographic zone announced by the Ministry of Municipalities and Housing and measures at least 5,000 m², or when the owner’s white land in that city adds up to that size. It is paid by whoever holds the title deed when the invoice is issued, including successors such as heirs; state property is excluded. The actual rate depends on the zone’s tier: 10%, 7.5%, 5% or 2.5%, with no fee in the fifth tier.
- What is the vacant property fee in Saudi Arabia?The vacant property fee is an annual charge, added to the white land fees law by Royal Decree M/244, calculated as a share of the building’s fair rent and capped at 5% of its value, although the Council of Ministers can raise the cap to 10%. It applies to a building left unused for 6 months, continuous or not, within a 12-month reference year, provided the building meets the regulation’s conditions, the first being that it lies in a geographic zone announced by the Minister of Municipalities and Housing. As of the review date (5 October 2026) no city had been announced, and the fee does not apply before such an announcement.
- When must a landlord register for VAT in Saudi Arabia?A landlord resident in Saudi Arabia must register for VAT once its taxable supplies, such as commercial rent, exceed SAR 375,000 over the past 12 months or are expected to exceed it over the next 12 months, and must apply within 30 days of the end of the month in which this becomes clear. Residential rent is an exempt supply and does not count, so a landlord who only lets homes does not have to register. Voluntary registration is possible once supplies or expenses reach SAR 187,500.
Buying and ownership
- Can a foreigner buy property in Saudi Arabia?Yes: the Law of Real Estate Ownership by Non-Saudis, issued by Royal Decree M/14 and in force since 22 January 2026, lets non-Saudi individuals and companies buy property inside geographic zones the Council of Ministers approved on 23 June 2026, including specific sites in Riyadh and Jeddah. A legal resident may also own one home to live in outside those zones, except in Makkah and Madinah. Applications are made online through the Saudi Properties portal run by the Real Estate General Authority (REGA).
- What is the Real Estate Registry and what changes for owners?The Real Estate Registry is a digital register supervised by the Real Estate General Authority (REGA) that records rights against the property itself and issues each registered property a property number and a title registration deed. The main change is that, according to official announcements up to 5 October 2026, sales, mortgages and subdivisions in Riyadh city, Hail Region and nine Eastern Province cities and governorates go only through the registry, after the property’s first registration. First registration is free, and missing the announced deadline for it is punishable by a fine of up to SAR 100,000.
- What is the minimum down payment for a home mortgage in Saudi Arabia?The minimum down payment on a citizen’s first home is 10% of its value, because the Saudi Central Bank (SAMA) allows financing of up to 90%. For a second or later home, financing is capped at 70% by banks and 85% by real estate finance companies, so the down payment is at least 30% or 15%. These are maximum financing limits, so a lender may ask for more, and the Real Estate Development Fund (REDF) offers eligible housing-support beneficiaries options that support or reduce the down payment.
- How does rent-to-own work in Saudi Arabia?Rent-to-own (Ijara ending in ownership) is a financing product in which a bank or finance company licensed by the Saudi Central Bank (SAMA) buys the property in its own name, leases it to the customer for instalments that combine rent and the value of the right to own, keeps ownership until everything due is paid, and then transfers ownership to the customer by sale or gift as the contract provides. It is governed by the Finance Lease Law (Royal Decree M/48 dated 13/8/1433H) and its Implementing Regulation, and the lessor must register the contract in the finance lease contracts register within 10 business days of signing.
- How do I check the zoning and permitted building rules for a plot in Saudi Arabia?Look the plot up in the Balady platform’s Urban Maps (U Maps) service, which is free and instant: search by plan number, plot number, property ID number and region, or click the plot on the map, and its data appears according to the permissions granted to you; the service is designed to show land uses and building regulations. The competent body is the municipality (amanah or baladiya) where the land lies: the Law of Municipalities and Villages, issued by Royal Decree M/5 dated 21/2/1397H, makes the municipality responsible for organising the town under an approved plan and for licensing buildings. When you build, the designs are checked in the Balady building permit application for compliance with the Saudi Building Code.
Real estate brokerage
- Can a real estate office charge commission without a FAL licence?No. The Real Estate Brokerage Law (Royal Decree M/130 dated 30/11/1443H) bars anyone from practising brokerage before obtaining a licence from the Real Estate General Authority (REGA), and it makes commission the right of a licensed real estate broker under a written brokerage contract deposited with REGA, which cannot be relied on otherwise. Brokering without a licence is a violation fined SAR 1,000 to 5,000 for a first offence depending on where the violation takes place, more on repeat, within a statutory ceiling of SAR 200,000.
- How do I check a FAL licence for a broker or a property ad?Use the Real Estate Enquiries page on the Real Estate General Authority’s website (rega.gov.sa): the “Enquiring about the FAL License” service checks whether a broker’s licence is valid by ID number or establishment number, and the “Inquiry about Real Estate Advertisement License” service checks an ad by its number; both are free and instant. Under the Real Estate Marketing and Advertising Regulation, in force since its publication on 1 May 2026, a property ad needs a REGA licence unless the regulation exempts it, ads outside online property platforms must display the licence number, and an ad may carry just that number and a QR code that leads to the rest of its details.
- Do I need a real estate office to document a lease on Ejar?Yes, if the lease is new: a new lease on the Ejar platform is created from the account of a licensed real estate broker registered on Ejar, and is documented once the lessor and tenant approve it. Renewing an existing lease, however, can be done by the lessor or the tenant from their own account without an office. The documentation fee falls on the lessor (SAR 125 per year for a residential lease), the office’s commission is separate, and the Real Estate Brokerage Law requires the brokerage contract to be in writing and deposited with the Real Estate General Authority (REGA).