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Real Estate Development Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Real Estate Development Contract

"I need a Real Estate Development Contract for a large-scale mixed-use project in Riyadh, Saudi Arabia, with construction starting March 2025, that includes specific provisions for off-plan sales under the Wafi program and addresses phased development over 5 years."

Document background
The Real Estate Development Contract serves as the primary legal framework for development projects in Saudi Arabia, establishing the relationship between developers, property owners, and other stakeholders. This document is essential when undertaking any significant real estate development project in the Kingdom, whether commercial, residential, or mixed-use. It must comply with Saudi Arabian law, including the Real Estate Developer Law, Saudi Building Code, and Sharia principles. The contract typically includes comprehensive project specifications, payment structures, timelines, quality standards, and regulatory compliance requirements. It is particularly important given Saudi Arabia's rapidly evolving real estate sector and the Kingdom's Vision 2030 initiatives, which have introduced new regulations and standards for development projects. The document provides crucial protection for all parties involved and ensures alignment with local legal and regulatory requirements.
Suggested Sections

1. Parties: Identification of the developer and owner/client, including full legal names and registration details

2. Background: Context of the development project, including property details and development objectives

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

4. Project Scope: Detailed description of the development project, including specifications and deliverables

5. Contract Price and Payment Terms: Development costs, payment schedule, and payment mechanisms

6. Project Timeline: Construction schedule, milestones, and completion dates

7. Developer's Obligations: Comprehensive list of developer responsibilities and commitments

8. Client's Obligations: Owner/client responsibilities including approvals and access

9. Quality Standards: Required construction and material standards, including compliance with Saudi Building Code

10. Permits and Approvals: Required governmental and regulatory approvals and responsibility for obtaining them

11. Variations and Changes: Procedures for handling changes to project scope or specifications

12. Testing and Commissioning: Requirements for testing and commissioning of completed works

13. Completion and Handover: Completion criteria, inspection procedures, and handover requirements

14. Defects Liability: Defects liability period and remediation obligations

15. Insurance and Securities: Required insurance coverage and performance securities

16. Force Majeure: Events constituting force majeure and consequent procedures

17. Termination: Grounds and procedures for contract termination

18. Dispute Resolution: Procedures for resolving disputes, including Saudi law requirements

19. Governing Law: Confirmation of Saudi law governance and Sharia compliance

Optional Sections

1. Environmental Compliance: Required for projects with significant environmental impact, detailing environmental obligations and compliance requirements

2. Community Impact: For large-scale developments affecting local communities, addressing social impact and mitigation measures

3. Financing Arrangements: When project financing is provided by third parties, detailing funding conditions and requirements

4. Off-Plan Sales: For projects involving sale of units before completion, including Wafi program compliance

5. Subcontracting: When subcontractors will be used, detailing management and approval requirements

6. Technology and Smart Systems: For smart building or high-tech developments, specifying technical requirements

7. Phased Development: For projects delivered in phases, detailing phase-specific requirements and conditions

8. Marketing Rights: When project marketing is part of developer's scope, detailing marketing obligations and restrictions

Suggested Schedules

1. Property Details: Legal description of property, title details, and site boundaries

2. Project Specifications: Detailed technical specifications and quality requirements

3. Project Drawings: Approved architectural, structural, and services drawings

4. Payment Schedule: Detailed breakdown of payments, milestones, and payment conditions

5. Construction Program: Detailed project timeline and milestone dates

6. Bill of Quantities: Detailed quantification of materials and works

7. Quality Assurance Plan: Quality control procedures and requirements

8. HSE Requirements: Health, safety, and environmental requirements

9. Forms and Certificates: Template forms for approvals, variations, and certificates

10. Permits and Licenses: Copies of required permits and licenses

11. Insurance Requirements: Detailed insurance specifications and coverage requirements

12. Performance Security Forms: Forms for bank guarantees and performance bonds

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























































Clauses









































Relevant Industries

Real Estate Development

Commercial Property

Residential Property

Mixed-use Development

Industrial Development

Hospitality

Retail

Infrastructure

Urban Planning

Construction

Architecture

Engineering

Relevant Teams

Legal

Real Estate

Construction

Development

Operations

Commercial

Finance

Compliance

Risk Management

Technical Services

Project Management

Business Development

Procurement

Design

Relevant Roles

Real Estate Developer

Project Director

Construction Manager

Development Manager

Legal Counsel

Contract Manager

Property Manager

Commercial Director

Chief Executive Officer

Operations Manager

Risk Manager

Compliance Officer

Business Development Manager

Technical Director

Finance Director

Project Engineer

Quantity Surveyor

Architect

Urban Planner

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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