Buying property in Saudi Arabia: what should you check before you pay, and how is ownership transferred?
Buying property in Saudi Arabia should follow one fixed order: check the property in official records first, sign a clear contract second, and pay and transfer only on an official platform.
In practice, that means verifying the title deed with the Ministry of Justice or the Real Estate Registry, checking land use and any Ejar leases, registering the deal with ZATCA for the 5% Real Estate Transaction Tax, and completing the transfer through the Ministry of Justice, a notary or the Real Estate Registry.
The purchase is complete only when the deed or property register is issued in the buyer’s name. A real estate lawyer can run these checks with you before you sign.
You can book a consultation on WhatsApp with the team at Al-Safwa Law Firm for Advocacy and Legal Consultations to review your documents and explain your legal options clearly.
Table of Contents
Buying property in Saudi Arabia: the process at a glance
Buying property in Saudi Arabia means confirming that the seller owns a clean, transferable title, that the property’s use fits your plan, and that tax and transfer steps are done on official platforms. The sale is final when the Ministry of Justice or the Real Estate Registry issues the deed or register in your name.
The steps below apply to residential and commercial property alike. They are based on the official services of the Ministry of Justice (MOJ), the Real Estate General Authority (REGA), the Real Estate Registry (RER) and the Zakat, Tax and Customs Authority (ZATCA), checked in November 2026.
- Confirm you can buy the property (relevant mainly for non-Saudi buyers).
- Verify the title deed and the seller in official records.
- Check mortgages, restrictions and rights recorded on the property.
- Check zoning, permits and actual use with the municipality.
- Review existing leases in Ejar if the property is rented.
- Sign a written sale contract that protects your deposit.
- Register the transaction with ZATCA and pay through traceable bank transfers.
- Transfer ownership on the competent platform and collect the new deed or register.
Before you start: can you buy, and where?
Saudi citizens and fully Saudi-owned companies can usually move straight to the property checks. Non-Saudi individuals, foreign companies and Saudi companies with foreign shareholders follow the Law of Real Estate Ownership by Non-Saudis, in force since 22 January 2026, which sets where they can own, the Makkah and Madinah rules and an extra REGA fee.
We cover those rules in detail in our guide to the non-Saudi property ownership law. This article focuses on what every buyer must check and sign once eligibility is clear.
Step 1: Verify the title deed and the seller
Never rely on a photo or a PDF copy of a deed sent by the seller or a broker. Check it yourself on an official service before any money moves.
Properties with a Ministry of Justice deed
The MOJ Real Estate Title Deed Inquiry service lets you view the deed and property details by entering the deed number and date, or the deed number and an owner’s ID number. You log in to the MOJ Real Estate Market platform with National Single Sign-On; an agent needs a valid real estate power of attorney.
If the seller still holds an old paper deed, it may first need to be digitized through the MOJ title deed digitization service, which needs scans of the deed and a survey decision or real estate ID.
Properties in the Real Estate Registry
In areas announced for title registration, the property has a property registration certificate and a record in the Real Estate Registry. According to REGA, this record shows the property number, the owner’s name, its type, location, area, boundaries and dimensions, and its rights, restrictions and obligations.
The RER platform lists the announced areas and offers a Property Ownership Documents Verification service. Check the register, not only the contract, whenever the property falls in an announced area.
The seller’s capacity to sell
- Individual owner: the name and ID on the deed must match the seller in front of you.
- Agent: the power of attorney must be valid and must expressly cover real estate sale and transfer.
- Company: the signatory needs authority under the company’s documents.
- Several owners or heirs: every co-owner on the deed, or their agents, must take part in the sale.
If a broker is involved, check that the broker holds a FAL licence and that the listing has a valid advertisement licence, using REGA’s FAL real estate brokerage services.
Step 2: Check mortgages, restrictions and recorded rights
A clean deed in the seller’s name is not enough. Ask what else is attached to the property:
- Mortgage: a mortgaged deed can be transferred only with the mortgagee’s approval, according to the MOJ conveyance service. Agree in writing how the bank will be paid off and the mortgage released.
- Rights, restrictions and obligations: in the Real Estate Registry these appear on the property record (RRRs). Read them before signing.
- Attachments or court orders: ask the seller to confirm in the contract that no seizure, enforcement order or court dispute affects the property, and check that the deed or register shows none.
- Planned public projects: where possible, ask the municipality whether road works or expropriation plans affect the plot.
Step 3: Check zoning, permits and actual use
A listing that says “commercial” does not make a property lawful for your activity. Before you commit, compare three things:
- The land use in the approved planning scheme: residential, commercial, mixed or industrial.
- The building as built against its construction licence: floors, heights, parking and setbacks.
- Your planned activity against the municipal rules for that location, since shops, clinics and offices may need a separate commercial activity licence.
Construction licences and commercial activity licences are municipal services handled through the Ministry of Municipalities and Housing’s Balady platform. Ask the seller for copies and check them with the municipality.
Step 4: Leased property: review the Ejar contracts
If the property has tenants, you are buying its leases as well as the building. Ejar is REGA’s platform for registering residential and commercial leases, and Ejar states that its standard contract is an executive instrument that can be enforced before the judicial and executive bodies (Ejar FAQ).
Ask for every lease and check its term, rent, renewal terms, security deposit, unpaid rent and any dispute. Then state in the sale contract how leases, rent and deposits pass to you on the transfer date.
For property in Riyadh, note that annual increases in the rent of residential and commercial leases within the city’s urban boundaries are suspended for five years from 25 September 2025, as announced by REGA on the Ejar platform page. REGA may apply the rule to other cities by decision, so check the current position for Jeddah or any other city before relying on rent growth.
Step 5: Sign a sale contract that protects you
The contract is where most buyer risk is handled. A sound property sale contract in Saudi Arabia usually covers:
- Full names and IDs of the parties, and the deed or register number of the property.
- The total consideration, the payment schedule and the bank accounts used.
- The deposit (arboon), and when it is refundable, for example if the deed shows a mortgage or the transfer is refused.
- The transfer date and the handover date, and who pays utilities and service charges until then.
- Which party bears the Real Estate Transaction Tax and any service charges.
- The seller’s statement that the property is free of undisclosed mortgages, rights and disputes.
- Conditions such as bank financing approval, or REGA approval for a non-Saudi buyer.
- Existing leases, and how disputes will be resolved.
Our contract drafting lawyer page explains what a legal review of the sale contract includes.
Step 6: Payment and the Real Estate Transaction Tax
Real estate disposals in Saudi Arabia are subject to the Real Estate Transaction Tax (RETT) at 5% of the property value. ZATCA states that the RETT Law, issued by Royal Decree No. M/84 dated 19/03/1446H, came into effect on 10 April 2025 and replaced the earlier RETT regulation (ZATCA).
Under Article 2 of the RETT Implementing Regulation (Arabic PDF), the tax applies whatever the property’s condition, form or use, whether it is completed, under construction or off-plan, and whether or not the transaction is notarized. The law and regulation also list exemptions.
ZATCA also explains that, since RETT started on 4 October 2020, real estate sales have been exempt from 15% VAT, and that the tax is paid before or during the transfer of the deed or the notarization of the contract (ZATCA RETT page).
The figures below were checked in November 2026 on the official pages listed and may change, so please verify with the official source before you pay.
| Item | Rate or requirement | Authority | Official source |
|---|---|---|---|
| Real Estate Transaction Tax | 5% of the property value, subject to the exemptions in the RETT Law | ZATCA | RETT Law page |
| RETT reference number | Required to list a sale on the MOJ Real Estate Market platform; paying the tax is not required at that stage | ZATCA / MOJ | MOJ conveyance service |
| VAT on a property sale | Exempt; RETT applies instead | ZATCA | ZATCA RETT page |
| REGA fee for non-Saudi buyers | Set by location in the Executive Regulations | REGA | See our non-Saudi ownership guide |
| Registry and notary service charges | Shown in each e-service before payment | RER / MOJ | rer.sa and the MOJ service pages |
For payment, the MOJ conveyance service requires a valid IBAN in the applicant’s name. Pay only by bank transfer to an account held in the seller’s own name, keep every receipt, and avoid cash or payments to a broker’s personal account.
Step 7: Transfer of ownership
The transfer route depends on how the property is recorded. The table summarises the official channels as described on the MOJ and RER service pages in November 2026.
| Route | When it is used | What the official page requires |
|---|---|---|
| MOJ Real Estate Market platform (List real estate transaction) | Property with an MOJ digital deed; the seller lists the deal and the buyer completes it on the platform | Title deed, valid IBAN in the applicant’s name, RETT reference number, real estate power of attorney if an agent acts; supports financing and mortgaged deeds with the mortgagee’s approval |
| Najiz Virtual Notary Public | Notarial services, including real estate transactions, without visiting a court or notary office | National Single Sign-On login on Najiz; documents uploaded as the form requires; a valid power of attorney, or a foreign power of attorney authenticated by the MOJ, if an agent acts |
| Private notary (Mwathiq portal) | Real estate transactions handled by a licensed private notary | Choose the service and a private notary on the Mwathiq portal, then complete the notarization |
| Real Estate Registry ownership transfer | Property already title-registered in an announced area | Full or partial transfer of the registered property, by the owner or through registrars licensed by REGA |
Non-Saudi buyers also file their ownership request on REGA’s Saudi Properties portal. If you are outside the Kingdom, a power of attorney and an online legal consultation can help you complete the steps without travelling.
Off-plan (Wafi) projects: extra checks
Off-plan units are governed by the Law of Sale and Lease of Off-Plan Real Estate Projects, issued by Royal Decree No. M/44 dated 10/03/1445H, and supervised by REGA through its off-plan sales and lease platform, known as Wafi (REGA).
REGA’s procedural manual shows that a developer must be registered, must hold a marketing licence and then a selling licence, and must deposit booking amounts in the project’s escrow account. Before you pay, check that:
- The project appears among REGA’s licensed projects and the licence covers selling, not only marketing.
- Your payment goes to the project’s escrow account, not to the developer’s general account or a broker.
- The unit, area, specifications, payment schedule and handover date in the contract match the licensed project.
- The contract states what happens if handover is late or the project changes.
RETT also applies to off-plan transactions under Article 2 of the RETT Implementing Regulation.
Commercial vs residential property: key differences
The legal steps are the same, but commercial property calls for deeper checks. The table draws on the points above.
| Point | Residential property | Commercial property |
|---|---|---|
| Main due diligence focus | Clean title, mortgage release, handover condition | Clean title plus land use, permits and the income from existing tenants |
| Zoning and permits | Residential use and a valid construction licence | Commercial or mixed use that allows your planned activity; the activity may need its own municipal licence |
| Existing leases | Often vacant or one tenant | Several Ejar commercial leases; review terms, deposits and arrears |
| RETT | 5%, subject to the exemptions in the law | 5%, subject to the exemptions in the law |
| Non-Saudi buyers | A resident may also own one home for personal housing outside the zones (not in Makkah or Madinah) | Only within the zones and categories allowed by the non-Saudi ownership law |
If you plan to buy commercial property through a new Saudi entity, set up the company first; see our company formation and registration service.
Common pitfalls and why transfers stall
The issues below are common patterns that follow from the official service requirements. Most can be avoided if they are checked before the deposit is paid.
- Paper deed not digitized: the online transfer cannot start until the deed is digitized or updated on the MOJ service.
- No RETT reference number: the MOJ platform asks for it before a sale can be listed, so register the transaction with ZATCA first.
- Weak power of attorney: an agent’s power of attorney that is expired or does not cover sale and transfer of real estate stops the transfer.
- Undisclosed mortgage: the mortgagee must approve, which adds a step and requires a payoff agreement.
- Mismatched data: names, ID numbers or the IBAN holder differ from the deed or the applicant.
- Property in an announced area handled the old way: once an area is announced, check the property’s status on RER before choosing the transfer route.
- Use does not fit the plan: the building or land use does not allow the intended commercial activity.
- Paying outside the record: cash or side payments are hard to prove if the deal falls through.
In short, buying property in Saudi Arabia goes smoothly when the deed, the register, the leases and the tax reference are checked first, and the contract ties each payment to a step that has actually happened.
Frequently Asked Questions about buying property in Saudi Arabia
A careful buyer spends more time on checks than on signing. Verify the deed and register, confirm the property’s use and leases, put every promise in the contract, and transfer ownership only through the MOJ, a licensed notary or the Real Estate Registry.
If you want a second look at a deed, a lease file or a draft contract before you pay a deposit, our team can review it and explain the steps that apply to your case.
To get a legal consultation from our team, contact us via the WhatsApp button at the bottom of the screen.
Read also:
Sources:
- ZATCA: Real Estate Transaction Tax Law (Royal Decree No. M/84, in force 10 April 2025)
- ZATCA: Implementing Regulation of the RETT Law (Arabic PDF)
- ZATCA: Real Estate Transaction Tax overview and VAT exemption
- Ministry of Justice: Real Estate Title Deed Inquiry
- Ministry of Justice: Digitization of real estate title deeds
- Ministry of Justice: List real estate transaction (conveyance)
- Ministry of Justice: Virtual Notary Public on Najiz
- Ministry of Justice: Private notary services
- Real Estate Registry (RER) platform
- REGA: Real Estate Registry services
- REGA: Ejar platform and Riyadh rent rules
- Ejar: Frequently asked questions
- REGA: Off-plan sales and lease (Wafi)
- REGA: Procedural manual for sale and lease of off-plan real estate projects (PDF)
- REGA: FAL real estate brokerage services
- Ministry of Municipalities and Housing: Balady platform
A legal advisor holding a Bachelor’s degree in Law from the prestigious Cairo University. He possesses extensive experience spanning over 25 years in criminal, civil, and family law, during which he has achieved notable accomplishments that have solidified his reputation as a valuable asset to any legal team
