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Offer To Purchase Real Estate Form for Saudi Arabia

Offer To Purchase Real Estate Form Template for Saudi Arabia

A legally binding document used in Saudi Arabia that formalizes a potential buyer's intent to purchase real estate property under specified terms and conditions. The document complies with Saudi Arabian real estate laws, including the Real Estate Registration Law and Islamic Shariah principles, and incorporates requirements for the 5% Real Estate Transaction Tax (RETT). It outlines essential elements such as property details, purchase price, payment terms, due diligence requirements, and closing conditions, while ensuring compliance with local regulations regarding property ownership and transfer.

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What is a Offer To Purchase Real Estate Form?

The Offer To Purchase Real Estate Form is a crucial document in Saudi Arabian property transactions that initiates the formal process of real estate acquisition. It serves as the preliminary agreement between parties, setting out the terms and conditions under which the potential buyer is willing to purchase the property. This document is typically used when a serious buyer has identified a property of interest and wants to formalize their intention to purchase, subject to certain conditions and due diligence. The form must comply with Saudi Arabian real estate regulations, including the Real Estate Registration Law, Foreign Investment Law (for foreign buyers), and Islamic Shariah principles. It includes essential information such as property details, purchase price, payment terms, conditions precedent, and closing requirements, while also addressing specific Saudi requirements such as RETT obligations and property registration procedures.

What sections should be included in a Offer To Purchase Real Estate Form?

1. Parties: Full legal identification of the buyer (offeror) and seller (offeree), including their official ID numbers, contact details, and legal capacity

2. Property Details: Comprehensive description of the real estate property, including exact location, boundaries, size, title deed number, and any registered encumbrances

3. Purchase Price: The offered purchase amount in Saudi Riyals (both in numbers and words), including payment terms and method

4. Earnest Money: Amount of deposit to be paid, when it's due, and how it will be held

5. Due Diligence Period: Timeframe for conducting property inspection, title search, and other necessary investigations

6. Closing Date: Proposed date for completing the transaction and transferring ownership

7. Property Condition: Statement regarding the condition in which the property will be delivered and any included/excluded items

8. Tax Obligations: Clarification of RETT payment responsibilities and any other applicable taxes

9. Offer Expiration: The deadline by which the offer must be accepted or will be considered void

What sections are optional to include in a Offer To Purchase Real Estate Form?

1. Financing Contingency: To be included if the purchase is contingent on the buyer obtaining financing, including terms and deadline

2. Property Insurance: Include when specific insurance requirements need to be maintained during the transaction period

3. Property Management: Required if the property is currently tenanted or if there are existing management contracts

4. Foreign Ownership Declaration: Necessary when the buyer is a non-Saudi national, addressing compliance with foreign ownership regulations

5. Shariah Compliance Statement: Optional detailed statement confirming the transaction's compliance with Islamic principles

6. Developer Warranties: Include for new properties or those still under developer warranty

7. Broker Representation: Required if real estate brokers are involved in the transaction

What schedules should be included in a Offer To Purchase Real Estate Form?

1. Property Documentation: Copies of title deed, property plans, and relevant certificates

2. Payment Schedule: Detailed breakdown of payment installments and timing if not a single payment

3. Property Inspection Report: Results of any preliminary property inspections or condition assessments

4. Included Items List: Detailed inventory of any furnishings, fixtures, or equipment included in the sale

5. Required Permits: Copies of all relevant permits, certificates, and regulatory approvals

6. Property Photographs: Recent photographs documenting the current condition of the property

Authors

Alex Denne

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use

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