Saudi Ministry of Housing has released the model of uniform rental contract that was framed to protect the rights of landlords, tenants and real estate brokers, as well as to control prices in the kingdom, said a report.
The contract consists of 16 articles that spell out the rights and duties of each party and the mechanism for payment of rent, reported the Saudi Gazette.
In a significant move, the cabinet has instructed the Ministry of Labor and Social Development to make Ijar system mandatory for the issuance and renewal of work permit for non-Saudis.
The Ijar system, which came into force in 2014, was developed by the Housing Ministry together with the ministries of commerce and interior.
The uniform contract will be registered with the ministry’s electronic Ijar system in accordance with the directive of the Council of Ministers in February this year, it stated.
Under the new system, any rental contract that has not been registered with the Ijar system would not be considered as a valid one in view of its administrative and judicial aspects, stated the report.
It is also mandatory for all real estate firms to join the system that defines the rights of tenants and landlords by having both parties sign a rental agreement via the Ijar network, it added.
Saudi Arabia releases new rental contract model
