A Saudi deal from start to finish

Saudi transfers are now almost fully digital. That makes them fast, but only if every step is ready. This lesson follows two deals: a resale and an off-plan sale.

Who does what

• The broker signs the brokerage contract, checks ownership, gets the advertising licence, finds the buyer and coordinates the steps.
• The seller usually registers and pays the Real Estate Transaction Tax (RETT) with ZATCA, the tax authority, and lists the deal for transfer.
• The buyer approves the transfer on the platform and pays through the system.
• The bank, if there is financing, handles the transfer and the mortgage registration in one step.
• The platforms replace much of the old paperwork: the Ministry of Justice’s Real Estate Exchange (SREM) for its electronic deeds, and REGA’s Real Estate Registry for properties registered there.
• Notaries still exist but, according to Raghdan, are now used less often. For complex or foreign deals, suggest the client also uses a lawyer.

A resale sale, step by step

1. Sign and deposit the brokerage contract. Get a copy of the title deed and check the owner’s identity and any mortgage.
2. Advertise with a licence for each advert (lesson 4).
3. Agree the price. If the buyer pays a down payment, it is written and capped at 5% of the price.
4. Write who pays what. The seller is legally liable for RETT, but the contract can shift all or part of it to the buyer. Agree your commission and any VAT on it in writing.
5. Register the deal with ZATCA through its RETT service and pay the tax. Trowers notes that all taxes and fees must be paid electronically before the transfer application, and that cash and post-dated cheques are not allowed. Without the tax certificate, no transfer.
6. Clean up the deed if needed. A paper deed must first be converted to an electronic one, which Raghdan says takes up to 10 days.
7. List the transfer. Both parties log in with Nafath. On SREM, the seller enters the buyer’s ID, the price, the bank IBAN and the tax reference. On the Registry, the steps are similar.
8. The buyer approves and pays. On SREM, the money moves to an intermediary account and the seller is paid after it is verified. On the Registry, the seller’s payment can take up to three business days.
9. New title deed. The deed is issued in the buyer’s name, often within hours when everything is ready.
10. Collect your commission under your contract.

An off-plan sale, step by step

1. Check the project on Wafi. It must have an active licence of the right type and a registered developer.
2. Sign a marketing contract with the developer, and get an advertising licence for each advert.
3. Reservation. During the marketing licence period, a developer may take a reservation of up to 5% of the unit’s value, and it goes into escrow.
4. Sale contract. It must show a handover date and the payment schedule.
5. Payments go to escrow, to the project’s escrow IBAN, never to you. Money leaves escrow only on orders signed by the developer, the engineering consultant and a certified accountant.
6. Handover and title. At completion the unit is delivered, and 5% of construction cost stays in escrow for a year to cover hidden defects, unless an insurance policy covers them.

Fees and taxes to explain

• RETT: 5% of the value, never below fair market value. Property sales pay RETT instead of VAT.
• First home relief: the state covers RETT on the first SAR 1 million of an eligible Saudi citizen’s first home.
• Non-Saudi disposal fee: 2% in Riyadh, Jeddah, Makkah and Madinah, 0% elsewhere (the law allows up to 5%). Who pays is agreed between the parties.
• Real Estate Registry transfer fee: Trowers reports SAR 1,600, subject to change. Confirm it on the platform.
• Brokerage commission: 2.5% by default, paid by the party who signed with you. If your agency adds VAT at 15%, write it in the contract.

Worked example in riyals

A resident non-Saudi buys an apartment for SAR 1,500,000 inside a Riyadh foreign ownership zone. You signed only the seller, at the default rate. The contract says the buyer pays RETT and the 2% fee.

Item	Calculation	Amount
RETT (buyer, by contract)	1,500,000 × 5%	SAR 75,000
Non-Saudi fee (buyer)	1,500,000 × 2%	SAR 30,000
Registry transfer fee	Trowers figure	SAR 1,600
Your commission (seller)	1,500,000 × 2.5%	SAR 37,500

The buyer’s total cost is 1,500,000 + 75,000 + 30,000 = SAR 1,605,000, plus the registry fee if he pays it. The seller pays your SAR 37,500 commission out of the price, plus SAR 5,625 of VAT if your agency adds it (37,500 × 15%).

Fees here are new and may change. Check the official source before you act. Try the numbers yourself with the commission calculator and practise with Saudi calculations.