Off-plan sales in Saudi Arabia and the Wafi platform

In Saudi Arabia, nobody can sell, lease or even advertise an off-plan project without a licence. Licences are issued through Wafi, REGA’s off-plan sales and lease platform. The current law took effect on 4 April 2024. Here is what it means for you as a broker.

The short version

1. Every off-plan project needs a REGA licence before it is marketed or sold.
2. Each project has its own escrow account with a licensed Saudi bank.
3. A developer can take a reservation of no more than 5% of a unit’s value, and it must go into escrow.
4. Money leaves escrow only on orders signed by the developer, the engineering consultant and the chartered accountant.
5. Before you sell, check the project, the licence type and the escrow details on Wafi.
6. Selling without a licence is a crime, with up to five years in prison or a fine of up to SAR 10 million.

What Wafi is

Wafi is the official platform for off-plan sales and leasing, run under REGA. It qualifies developers, issues project licences and keeps a public registry. Its inquiry service shows licensed projects with their developer, location, licence type and status: not started, in progress, completed or cancelled. In November 2025, REGA launched instant licensing: a licence is issued as soon as all requirements are met, instead of in about 30 working days.

The licence types you will see

• Marketing licence without receiving money. The developer can promote the project but cannot collect money.
• Marketing licence with receipt of amounts. The developer can take reservations, but must disclose the project’s status and plans, collect no more than 5% of each unit’s value, and deposit everything in escrow.
• Sales licence. Requires a sale contract template with handover dates fixed to the day, and an escrow agreement with a licensed bank.

How escrow protects buyers

• The escrow account belongs to the project and can only be used for it. The developer’s creditors cannot seize it.
• Withdrawals need a payment order signed by the developer, the consulting firm and a certified public accountant.
• Spending that is not construction is capped at 20% of the value of units sold.
• If the developer withdraws a surplus before completion, 20% of it stays in escrow until the end.
• 5% of the construction cost stays in escrow for one year after completion, unless an insurance policy covers hidden defects.

About payments tied to progress. The law and manual tie escrow withdrawals to engineering and accounting sign-off. We did not find a published rule that fixes a stage-by-stage schedule for the buyer’s own instalments. The schedule is written in the sale contract, so read it with your client.

What a broker must check before selling

• The project appears on Wafi with an active licence and the right type. A marketing licence without receipt of amounts means no money can be collected yet.
• The developer is in the registry and qualified.
• You have a written marketing contract with the developer. It is part of the licence file.
• Every payment goes to the project’s escrow IBAN, never to you or to a personal account.
• Any reservation stays within 5% of the unit’s value.
• The sale contract shows a handover date.
• You have your own FAL licence and an advertising licence for each ad.

Buyer protections

• The developer must start construction within six months of the licence.
• The land’s title deed carries a notation, so it cannot be sold or disposed of until the project is complete.
• If the developer is late without a valid reason, a home buyer is entitled to compensation equal to the rent of a similar property.
• If a project cannot be finished, REGA can complete or liquidate it and return what buyers paid.
• Reservation money is refunded if the marketing licence is cancelled or the sale is not completed within 180 days.
• Buyers can see their accounting records, and can complain about defects. If the developer does not start repairs within five days, escrow funds or a bank guarantee can be used.

This guide was checked on the date shown above. Always confirm a project on Wafi before a client pays anything. CloserPass is not affiliated with REGA.

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