Saudi rental contracts to go online
Brokers will have access to tenants’ backgrounds, credit standings
Saudi’s Ministry of Housing says its rental sector is expected to be improved with the implementation of a new electronic “Ijar” system, it was reported.
Under the new system, tenants and property owners will be asked to sign a rental agreement via its electronic network for rental services.
Licensed real estate brokers who are members of the network will then have the ability to provide rental brokerage services, verify tenants’ backgrounds and their credit standing, Saudi Gazette reported.
The Ministry of Housing will develop the network in coordination with the Ministry of Commerce and Industry and also coordinate with the Ministry of Interior to define the information that will be included in rental agreements.
The Gazette said the National Information Center will also allow network members to verify information and the Ministry of Housing will set up a database of finalised contracts. The ministry will co-ordinate with the Saudi Arabian Monetary Agency (SAMA) to set up a system where tenants can pay rent electronically.
All rental agreements made through the network will be considered binding and the minister of housing will co-ordinate with the minister of justice to set up the required mechanism to activate the service, it said.
Economist Fadl Abulainain told the Gazette that the electronic services will provide some desperately-needed transparency to the real estate sector and will also safeguard the rights of all parties.
“These services will also provide monitoring bodies with the correct information about the activities in the real estate market,” he said.
“Using electronic services is a good step for the Saudi real estate market, although I believe that the real benefit can be obtained by ensuring justice and the protection of both parties.”