The real estate sector in Saudi Arabia is witnessing rapid advancements aimed at enhancing its efficiency and reliability. One of the most significant developments is the real estate registration system. This system represents a paradigm shift in managing property ownership and safeguarding rights, ensuring precise and transparent documentation of properties. It facilitates real estate transactions and protects property owners' rights. In this article, we will explore the concept of real estate registration and its importance, the mandatory nature of the initial public registration, procedures for recording real estate transactions, and the role of the registrar in implementing this system.
What is Real Estate Registration?
Real estate registration is the process of making the property itself the basis for recording legal rights. This means linking legal rights directly to the property in an official registry, rather than relying on transactions between individuals. The system ensures accurate and comprehensive documentation of all aspects related to the property, including descriptions, rights, and obligations. This enhances transparency and protects the rights of all parties involved.
The real estate registry consists of a set of documents detailing the property's characteristics, location, physical and regulatory conditions, and associated rights and obligations, along with any amendments based on valid legal documents.
Initial Real Estate Registration
Initial real estate registration is mandatory under the Saudi real estate registration system. This process aims to document property ownership for the first time and protect owners' rights from encroachments or disputes. It is carried out under the supervision of the competent authority designated by a decision from the Council of Ministers. The registrar is responsible for documenting the initial real estate registration and any transactions or changes related to the property, following the provisions of the system and its regulations.
Defining the Real Estate Area and Starting Registration
According to Article 7 of the Real Estate Registration System:
1.The initial registration process begins with a decision by the competent authority to define the real estate area. This decision must include precise boundaries and a specific timeframe for receiving initial real estate registration applications. Public announcements are made through appropriate means defined by the decision.
2.The competent authority is tasked with the initial registration of all properties within the area and any subsequent transactions affecting them.
3.Real estate transactions conducted within the defined area during the initial registration period must be documented according to procedures outlined in the regulations.
Conditions and Requirements for Initial Real Estate Registration
As stated in Article 8, the system stipulates two essential conditions for initial real estate registration:
1.Valid Ownership Title Deed: The property (excluding state-owned properties) must have a title deed that meets all legal requirements. This ensures a sound legal basis for registration.
2.Complete Geospatial Data: The property must be registered with accurate and comprehensive geospatial data.
Additional details include:
The executive regulations specify the detailed procedures for initial real estate registration.
The competent authority may require individuals to disclose any necessary documents or data to ensure the accuracy and integrity of the initial real estate registration.
The competent authority conducts the necessary surveying work and may use pre-approved survey data if available.
Once all procedures are completed, a property ownership title certificate is issued.
Ownership Lists and Publication
The competent authority prepares ownership lists based on the issued title certificates. These lists include data specified in the regulations and are published through appropriate means defined by the regulations.
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Objections and Legal Actions on Initial Real Estate Registration
Any interested party has the right to object to the initial real estate registration before the competent court unless the registration has acquired absolute legal validity under the system.
According to Article 11 of the Real Estate Registration System:
If a lawsuit is filed concerning initial real estate registration, a notation is made in the real estate registry and ownership lists. The final court ruling is then recorded in the registry.
The registration gains absolute legal validity after one year from the date of publishing the ownership lists. Once this validity is achieved, an affected party may seek compensation from the responsible party in court but cannot request the cancellation or amendment of the registration or its data.
Article 17 specifies:
Any rights established by a final court ruling become binding on those whose rights are subsequently recorded in the registry, provided the ruling is registered within 90 days of becoming final.
Registration of Properties Outside Defined Areas
The system allows property owners outside defined real estate areas to request the registration of their properties in the real estate registry, according to conditions and regulations specified by the executive regulations.
Registration of Real Estate Transactions
All transactions following the initial real estate registration that establish, transfer, modify, or extinguish primary or subordinate property rights must be recorded in the real estate registry. This includes property divisions, wills, endowments, inheritance, mortgages, grants, and similar actions. These rights are only legally effective and administratively enforceable upon registration.
Article 14 states that all contracts, leases, and obligations affecting property benefits lasting 10 years or more must also be recorded in the registry to be legally effective.
Importance of the Real Estate Registration System
1.Preserving Property Rights: The system ensures documented and transparent protection of property rights, safeguarding against encroachments or forgery.
2.Simplifying Real Estate Transactions: It streamlines the processes of buying, selling, mortgaging, and other property dealings.
3.Enhancing Transparency: The system provides a reliable and comprehensive property database, promoting transparency in the real estate market.
4.Attracting Investments: The system improves the real estate investment environment, attracting both domestic and foreign investments.
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