Draft form for registering usufruct rights in the Saudi real estate registry

In a strategic move aimed at regulating and developing the real estate sector, the General Authority for Real Estate announced the release of a draft model for registering usufruct rights in the real estate registry, in addition to a draft model for the usufruct deed. These drafts were made available through the “Istilaa” platform of the National Competitiveness Center, enabling the public, government entities, and the private sector to provide their feedback and comments before official approval. This step ensures the participation of all stakeholders in the drafting of real estate legislation.

Regulatory context and development of real estate legislation in the Kingdom

In recent years, the Kingdom of Saudi Arabia has witnessed radical transformations in the structure and development of its legislative environment, in line with the objectives of Saudi Vision 2030, which seeks to diversify income sources and attract investments. Historically, the real estate sector relied on traditional mechanisms for documenting rights, but with the launch of the Real Estate Registration System and the Civil Transactions System, a new era of governance and transparency has begun. The Authority clarified that the substantive provisions governing the right of usufruct are precisely regulated in the Civil Transactions System, definitively outlining the scope of the right and the rights and obligations of its parties, leaving no room for interpretation.

The Authority indicated that these procedures are in accordance with the provisions of the Real Estate Registration Law, specifically Article Thirteen (13), which mandates the registration of all transactions that create any original or derivative real rights. Under this law, such rights are not valid and produce their judicial and administrative effects except through this documented registration.

The importance of registering usufruct rights and its overall economic impact

project holds usufruct registration significant importance that extends beyond the local level to encompass regional and international impacts. Locally, this measure contributes to reducing real estate-related litigation by formally and accurately documenting the rights of both the owner and the usufructuary, thus protecting the real estate assets of citizens and investors. Regionally and internationally, a clear and transparent legislative environment that guarantees long-term usufruct rights is a powerful attraction for foreign capital and global companies seeking safe and stable investments in the Saudi market, thereby raising the Kingdom's ranking in global real estate transparency indices.

Guaranteeing the rights of the beneficiary and the owner

The General Authority for Real Estate clarified that the draft form includes all provisions related to the registration mechanism and details the rights and obligations of both the beneficiary and the owner, along with other essential details. Furthermore, the draft form for the usufruct deed outlines the legal and spatial data and details it contains. This primarily aims to enhance the efficiency of real estate registration procedures, improve the accuracy and reliability of real estate registry data, and ensure the protection and clear regulation of the rights of all parties involved, preventing any overlap in jurisdictions.

Invitation to participate via survey platform

In keeping with the principles of transparency and community engagement, the Authority invited all interested parties from the public, government entities, and the private sector to review the amended regulations and draft forms via the “Survey” platform and submit their comments and suggestions. The Authority emphasized its keen interest in ensuring that this step contributes to the efficiency of the real estate sector, keeping pace with the rapid development of the Saudi real estate market, and simultaneously strengthening the confidence of stakeholders and investors in the robustness and strength of the real estate sector in the Kingdom of Saudi Arabia.