MCI has stopped a real estate developer for exercising off-plan sale and receiving payments from buyers, for under construction residential units, without getting a license from the Ministry. The case was referred to the Bureau of Investigation and Public Prosecution, in accordance with the applied regulation.
The Ministry received a notification from a citizens stating that he had made an agreement with a real estate developer for building a house, within the housing project of the company in Riyadh, provided that the citizen would pay the amount through installments, as per the contract concluded, but the developer did not comply with this contract, and delayed in the delivery of the said residential unit.
MCI, represented by off-plan sale program, had warned real estate developers of advertising, marketing or selling any under construction housing unit, unless getting the necessary license. This is in accordance with the Cabinet Decree No. (73) dated 12.03.1430 H, amended by the Decree No. (47) dated 04/02/1434 H.
MCI would like all citizens and residents not to be misled by signing a contract for real estate off-plan sale, or under construction housing units, or even undeveloped lands, unless ensuring that the developer or the advertiser has got the necessary license from MCI off-plan sale program. Adding that all citizens should not rely on advertisement or displaying the project in the real estate exhibitions, unless referring to the license obtained from the Ministry.
It is worth mentioning that off-plan sale program has granted more than 40 licenses to real estate developers to engage in real estate off-plan sale activity, after they have met the needed requirements.
All those wishing to own a property in such projects, may visit the website (re.mci.gov.sa) to have a look on the companies licensed to sell off-plan real estate units.