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The Equity Sharing Agreement (Real Estate) is a specialized legal instrument used in Saudi Arabia when two or more parties wish to jointly invest in and own real estate assets. This document becomes necessary when investors want to pool resources for property acquisition while maintaining clear rights, responsibilities, and profit-sharing arrangements. It is particularly relevant in the context of Saudi Arabia's Vision 2030 initiatives, which have modernized real estate investment frameworks. The agreement must comply with both Saudi civil law and Sharia principles, making it distinct from conventional real estate sharing agreements used in other jurisdictions. It typically includes comprehensive details about property management, profit distribution mechanisms, exit strategies, and dispute resolution procedures, all structured to meet local regulatory requirements and Islamic finance principles.

1. Parties: Identification of all parties to the agreement including full legal names, addresses, and registration details

2. Background: Context of the agreement, including property details and purpose of the equity sharing arrangement

3. Definitions: Key terms used throughout the agreement, including financial, technical, and legal terminology

4. Structure of Ownership: Detailed breakdown of ownership percentages and type of ownership structure

5. Property Details: Comprehensive description of the property including title details, location, and registration information

6. Financial Terms: Investment amounts, payment terms, and profit-sharing mechanisms in compliance with Sharia principles

7. Management Rights: Property management responsibilities, decision-making processes, and voting rights

8. Income and Expense Allocation: Distribution of rental income, responsibility for expenses, and accounting procedures

9. Transfer Restrictions: Limitations on transfer of ownership shares and right of first refusal provisions

10. Exit Mechanisms: Procedures for selling shares, buyout provisions, and termination of the agreement

11. Representations and Warranties: Standard declarations regarding ownership, authority to enter agreement, and compliance with laws

12. Governing Law and Jurisdiction: Specification of Saudi law application and jurisdiction for disputes

13. Dispute Resolution: Process for resolving conflicts, including mediation and arbitration procedures

14. Notices: Communication procedures and contact details for official notices