Service Directory
Off-Plan Sales Project Licence
An Off-Plan Sales Project Licence is issued to developers who want to develop projects according to the Off-Plan Development scheme. The licence enables them to construct the project with buyers’ money deposited in escrow accounts after ensuring that the developer has deposited 20% of the project value. It also allows them to advertise their projects and sign preliminary contracts with buyers. The contracts should clearly and transparently stipulate the details of homeowner associations and common areas if applicable, in addition to revealing all the details and data of the project to the buyer before signing the SPA contract
Service Conditions
- The developer must be licensed before applying for an off-plan sale license
- The land must be registered in the name of the project developer or he has a written consent of the land owner
- The real estate on which the project is built must be allowed to be subdivided to the layers and apartments system according to the laws and regulations in the Kingdom
Required Attachments
- Feasibility study or results of field research (if any)
- Guarantee account agreement
- Letter from the escrow account trustee stating that 20% of the project value is deposited
- Copy of the sales contract form that will be signed
- Draft property location plan
- Main and basic system model
- A letter outlining the project and the opening of the off-plan sales register
- Copy of signed agreements between the main developer and the subsidiary (if any)
- Any other documents required by the institution
- Title deed for the property on which the project will be built
- Division plan approved by the Planning and Urban Development Authority (for horizontal construction projects only)
- Land valuation report from an evaluator licenced by RERA
- Building permit
- Engineering designs approved by the municipality
- Copy of the contract between the contractor and the developer
- Letter from a consultant engineer detailing the estimated project value
- Project construction phases schedule
- Statement of predicted completion rates and payment value at each phase according to RERA guidelines
- Project financing plan according to RERA guidelines
Legal Regulations
- Ministerial Resolution 2 of 2018 regarding Licences for Real Estate Development Projects
Fees
Dependant on the total value of the project
- 5000 BD : If the total value of the project is less than 1 BD million
- 10000 BD : If the total value of the project is between 1 BD million and BD 2.9 million
- 20000 BD : If the total value of the project is between 3 BD million and BD 6.9 million
- 30000 BD : If the total value of the project is between 7 BD million and BD 9.9 million
- 50000 BD : If the total value of the project is more than 10 BD million
Process Time
- 40 Working Days
Service Provider
Real Estate Regulatory Authority
