In a workshop held in
Asharqia Chamber.
A
workshop hosted by Asharqia Chamber on Tuesday 16 May 2017 reviewed the project
of sales and leasing of real estate
units on Wafi map, which included speakers from the Ministry of Housing. included:
Legal Advisor Anas Al Mazroa, Director of Legal Consultancy Abdulrahman Al Enezi,
and Director of
commitment Walid Al Ubaid Allah.
The
workshop presented a definition of the project that deals with the sale and
leasing of real estate units on the map, for residential, commercial,
investment, service, tourist, industrial and other purposes, so that the developer
receives amounts from the beneficiaries or sponsors of the project.
The
workshop stated that the scheme offered for sale or leasing on the map is
subject to engineering and legal supervision, and there is a guarantee account
for the project deposits are paid by the beneficiary and the financier.
A
feasibility study for the project in Arabic, approved by a consulting firm
specializing in economic feasibility studies, includes the estimated financial,
construction and marketing data for the project, including the cost and
contract price of the unit, the expected financial and administrative expenses,
The
duration of the project, the duration of delivery of the units, the project
implementation stages, and the expected sources of funding for the project.
The
license requirements also provide a copy of the developer agreement with the
account manager, the licensed bank in the Kingdom, to manage the above
mentioned security account, with the addition of 20% of the estimated value of
the project plus the land price or a letter of guarantee And
a copy of the contracts of the real estate marketer, the legal accountant
(accredited by the Saudi Organization for Certified Public Accountants), the
consulting office (accredited by the Saudi Organization of Saudi Engineers) and
clarification Task them all ,
In
this regard, they stated that the regulation obliges the real estate developer
to obtain a license to sell on the map to pass the real estate developers'
rehabilitation program, in addition to providing any other documents and
certificates required by the committee, pointing that if the real estate
developer is not the owner of the project land, The
owner of the land has to get along with the provisions of the regulations,
regulations and instructions of the committee, and provide the requirements and
requirements of the supporting documents that guarantee the safety of work in
the project and its continuity, after the license.
According
to the regulations, after completing the reasons for the request and the preliminary
approval of the committee, the Ministry of Housing requests the Ministry of
Justice to the Land by not allowing it to be disposed of without the permission
of the Ministry.
The
regulation states that the license is reviewed, suspended or even canceled in
certain cases, including proving the insolvency of the developer and declaring
bankruptcy, issuing a conviction for a crime against the secretariat, violating
the controls and decisions of the committee, or not initiating the project
without an acceptable excuse, and then stop,
which shows the lack of seriousness in the implementation.
To
ensure the proper implementation of the project, the regulation requires the
accountant to maintain the equivalent of 5% of the total value of construction
costs. The guarantee of good execution of the project, which is spent in
repairing defects that may appear after completion of the project, may not be to
the developer until after approval by the committee or The
expiration of one year from the date of delivery of the project developer, and
the settlement of all conditions of good performance during that year,
The
Regulations reviewed the functions of the accountant, engineering supervisor, secretary
of the account and so on.
The
list determines a number of violations that require the commissioner to be
referred to Investigation and public prosecution, including unauthorized
activity, incorrect information to the ministry or committee, and the
accountant or engineering consultant to provide false information or hiding facts
in the reports about the project.
