Off-Plan Sales Licence in Saudi Arabia: Legal Requirements and Compliance Steps
Obtaining an off-plan property sales licence in Saudi Arabia is an essential regulatory consideration for developers intending to sell qualifying units before project completion.
The licensing process involves more than submitting an electronic application. Developers must review legal eligibility, land ownership, architectural documentation, financial arrangements, project escrow, and contractual obligations.
To obtain an off-plan project sales licence, a developer must satisfy the relevant registration requirements, prepare the necessary documents, apply through the authorised regulatory channels, and comply with the conditions of the licence issued.
Atyar Advocates & Legal Consultants provides legal services involving real estate development agreements, property rights, investment structures, contractual safeguards, and assessment of legal and regulatory risks.
What Is an Off-Plan Sales Licence in Saudi Arabia?
An off-plan sales licence is a project-related regulatory authorisation under Saudi Arabia's Law of Selling and Leasing Off-Plan Real Estate Projects.
It governs the licensed activities for selling qualifying property units or developed land before completion, subject to the applicable licence and legal requirements.
The activity is regulated under the supervision of the Real Estate General Authority (REGA).
Developer Registration vs Marketing Licence vs Sales Licence
Developer Registration
Establishes the developer's relevant eligibility and qualification to undertake the activities regulated by the Law.
Project Marketing Licence
Authorises specified promotional activities before full project licensing, subject to its terms, validity and conditions.
Off-Plan Sales Licence
Concerns the project and the authorised sales or leasing activity after the relevant requirements are fulfilled.
Which Authority Issues Off-Plan Sales Licences?
The Real Estate General Authority supervises and regulates off-plan real estate sales and leasing in Saudi Arabia under the applicable Law and Implementing Regulations.
Its electronic services support developer registration, project licence applications, and related regulatory procedures.
What Are the Legal Requirements for an Off-Plan Sales Licence?
Exact requirements depend on the licence category and project circumstances. They can be considered across six principal areas.
Developer Eligibility
Registration, qualification, commercial records, and relevant legal documentation.
Land Ownership
Title deed, property rights, restrictions, and development agreements where applicable.
Engineering Documentation
Building-related approvals, architectural plans, engineering designs, and required permits.
Financial Feasibility
Project cost estimates, financing, expected expenditure, and completion planning.
Escrow Arrangements
Dedicated project accounts, deposit controls, financial oversight, and relevant supervision.
Contracts and Obligations
Rights and duties of developers, landowners, contractors, consultants, and purchasers.
What Documents Are Required for an Off-Plan Sales Licence?
The Law and Implementing Regulations specify documentation associated with developer eligibility and project licensing.
| Document | Purpose |
|---|---|
| Valid commercial registration | Establish developer identity and business activity. |
| Chamber of Commerce membership | Addresses relevant developer documentation requirements. |
| Credit report | Provides the required credit information. |
| Land title documentation | Identifies ownership and property rights. |
| Development agreement, if applicable | Establishes landowner and developer authority. |
| Architectural and engineering drawings | Defines the proposed project and units. |
| Building permits and approvals | Addresses relevant construction requirements. |
| Project feasibility study | Supports financial, construction and marketing assessment. |
| Financing and delivery information | Explains anticipated funding and completion timing. |
| Escrow and oversight arrangements | Addresses project financial controls and supervision. |
Eight Steps to Obtain an Off-Plan Sales Licence in Saudi Arabia
The licensing procedure generally involves the following stages, subject to the applicable project category.
Step 1: Verify Developer Registration
Confirm registration, qualification, and eligibility under the relevant rules.
Step 2: Identify the Licence Category
Determine whether the application concerns marketing, off-plan sales, leasing, or another applicable project category.
Step 3: Prepare Project Documents
Review land ownership, development rights, engineering designs, required approvals, and supporting records.
Step 4: Complete Financial and Technical Requirements
Prepare project feasibility, financing information, escrow arrangements, and required professional oversight.
Step 5: Submit the Electronic Application
Use the official REGA services to enter project information, attach documents, and complete declarations.
Step 6: Address Regulatory Observations
Monitor the application and provide supplementary records or clarifications requested by the authority.
Step 7: Review the Issued Licence
Confirm its validity, category, authorised scope, and any applicable conditions.
Step 8: Maintain Compliance After Approval
Continue to address escrow, reporting, project execution, supervision, and delivery obligations as required.
How Do You Apply for an Off-Plan Sales Licence Online?
An application is submitted through the electronic services authorised by REGA.
The process generally includes accessing the service, selecting the licence category, creating an application, completing the project details, uploading required documents, submitting declarations, and monitoring application status.
What Are the Requirements for a Project Marketing Licence?
Article 8 of the Implementing Regulations permits a developer to request a marketing licence before obtaining the full project licence.
Specified marketing application information includes:
- Registered land title deed number.
- Marketing contract number, where applicable.
- Development agreement with the landowner, if applicable.
- Architectural designs and engineering plans.
Can Reservation Fees Be Collected Under a Marketing Licence?
Article 10 of the Implementing Regulations establishes requirements for collecting reservation amounts during the marketing licence period.
Project Disclosure
Disclose the project's status and future plans to prospective purchasers.
Reservation Limit
Do not collect more than 5% of the relevant property's unit value.
Escrow Deposit
Deposit the full reservation amounts in the designated escrow account.
The Regulations address the return of reservation funds if the marketing licence period expires and the developer has not completed the relevant project licensing.
What Is the Role of an Escrow Account in Off-Plan Licensing?
A project escrow account is a dedicated bank account used to manage project-related funds in accordance with the applicable requirements.
Developers should review account establishment, deposits, permitted spending, financial oversight, and professional reporting obligations.
How Does a Real Estate Development Agreement Affect Licensing?
Where the developer is not the landowner, the development agreement establishes the legal relationship between the parties.
It should address development authority, required approvals, financing, construction, distribution of returns, contractual guarantees, default, and termination.
Development Rights
Define the developer's authority in relation to the land, proposed project, and intended works.
Obligations and Safeguards
Regulate financing, approvals, implementation stages, party responsibilities, and contractual remedies.
How Long Does Off-Plan Licensing Take, and What Does It Cost?
Application processing periods and fees depend on the relevant licence category, service route, and project requirements.
Working Days for a Complete Marketing Application
The Implementing Regulations provide for a decision on a complete project marketing licence application within ten working days.
Days of Marketing Licence Validity
The licence duration is no more than 180 days, with possible extensions for qualifying projects under the specified conditions.
Common Legal Mistakes in Off-Plan Licensing Applications
Confusing Licences
Treating developer registration or marketing authorisation as a complete sales licence.
Incomplete Documentation
Missing title documents, development agreements, or required approvals.
Inconsistent Plans
Differences between architectural plans and submitted project information.
Weak Financial Arrangements
Insufficient financial information, feasibility, or escrow preparation.
Reservation Violations
Collecting amounts outside the authorised marketing licence conditions.
Ignoring Ongoing Duties
Failing to maintain required approvals, reporting, and post-licensing compliance.
Legal Compliance Checklist Before Submitting Your Application
| Review Area | Key Question |
|---|---|
| Developer Eligibility | Are registration and qualification requirements satisfied? |
| Licence Category | Does the application cover the intended activity? |
| Company Documentation | Are the required records complete and valid? |
| Land Ownership | Have title, rights, and restrictions been reviewed? |
| Development Agreement | Are the parties' powers and duties clearly documented? |
| Engineering Plans | Are the submitted technical documents consistent? |
| Feasibility and Financing | Is the necessary financial information supported? |
| Escrow Account | Are banking and oversight arrangements addressed? |
| Marketing and Reservations | Are proposed activities within the licence scope? |
| Purchaser Contracts | Are contractual terms, payment and delivery properly addressed? |
| Project Supervision | Are professional responsibilities and reporting defined? |
| Ongoing Compliance | Are there procedures to monitor regulatory obligations? |
Atyar's Experience in Real Estate Investment and Development Agreements
Atyar Advocates & Legal Consultants has published matters involving legal assessment and drafting of significant real estate investment and development agreements.
Real Estate Investment and Development Agreement Exceeding SAR 4 Billion in Riyadh
Atyar provided legal services concerning the acquisition, development, and investment of real estate north of Al-Takhassusi Road in Riyadh.
The work involved transaction structuring, property rights, acquisition and development, financing, contractual licensing responsibilities, guarantees, and allocation of legal risks.
Exceeding SAR 4 billion.
North of Al-Takhassusi Road, Riyadh.
Legal study and investment and development agreement drafting.
This engagement illustrates the importance of organising property rights, financing, development authority, and contractual safeguards before substantial project commitments.
Additional Real Estate Development Experience in Makkah
Development Agreement Exceeding SAR 1 Billion
Atyar provided legal assessment and agreement drafting in connection with an investment and development transaction in Makkah.
The engagement addressed property ownership, acquisition, title transfer, project development, funding, and contractual safeguards.
Development Agreement Exceeding SAR 800 Million
Atyar provided legal advice and drafted an investment and development agreement concerning a substantial real estate transaction in Makkah.
Its scope included implementation phases, financing, costs, guarantees, contractual breach, and termination.
How Can Atyar Assist Developers With Legal Licensing Preparation?
Atyar Advocates & Legal Consultants provides legal services concerning property ownership, development contracts, investment structures, contractual duties, and regulatory risk.
- Reviewing property title and real estate rights.
- Assessing real estate development structures.
- Drafting development and investment agreements.
- Analysing contractual responsibilities.
- Reviewing safeguards and guarantees.
- Assessing regulatory obligations and legal risks.
- Reviewing purchaser-related contract terms.
- Preparing legal studies and opinions.
- Assessing disputes and legal claims.
- Providing advice during development preparation.
Related Real Estate Investment and Development Case Studies
These published matters demonstrate Atyar's experience in property acquisition, development contracts, financing, and contractual safeguards for substantial real estate projects.
Frequently Asked Questions About Off-Plan Sales Licences in Saudi Arabia
How can I obtain an off-plan sales licence in Saudi Arabia?
Complete the applicable developer registration, identify the licence category, prepare project documents, and submit an application through the official REGA services.
Can a developer obtain a marketing licence before a sales licence?
Yes. The Implementing Regulations allow a project marketing licence to be requested before the full project licence, subject to conditions.
What is the difference between a marketing licence and a sales licence?
A marketing licence permits specified promotional activities, while the full project licence governs the authorised sales or leasing activity.
Must the developer be registered?
The regulated off-plan sales and leasing activity is subject to developer registration requirements under the Law.
Is land title documentation required?
Relevant ownership records and development rights form part of the licensing documentation, depending on the project and licence category.
Is an escrow account important for off-plan projects?
Yes. The governing legislation regulates project escrow accounts, deposits, withdrawals, and financial oversight.
How much does an off-plan sales licence cost?
Fees depend on the licence category and current official service. Confirm the applicable fee directly through REGA.
Can reservation fees be collected before full project licensing?
They may be collected during the marketing licence stage under specified conditions, including the 5% cap, disclosure, and escrow requirements.
