Required Disclosures for Saudi Arabia Landlords

Unlike some Western jurisdictions that require a dozen separate addendums for lead paint, mold, or historical data, the Saudi Arabian disclosure process is integrated into the principles of good faith and the standardized Ejar electronic contract.

Transparency prevents disputes under the oversight of the Real Estate General Authority (REGA).

Good Faith and Material Defect Disclosure

Under Saudi civil law, heavily influenced by Islamic Sharia principles, commercial and private dealings must be conducted with absolute transparency and absence of "Gharar" (uncertainty/deception).

A landlord must disclose any known material defects that significantly affect the tenant's ability to use the property safely and peacefully.

Failure to disclose major defects (such as chronic foundational issues, failing plumbing, or lack of promised utilities) gives the tenant the legal right to void the contract without penalty through REGA mediation.

The Ejar Contract Specifications

The Ejar platform requires specific disclosures to be formally recorded when generating the lease. A landlord must accurately disclose:

1. Property Details: Exact measurements, the number of rooms, the number of bathrooms, parking availability, and exact location.
2. Title Deed Verification: The system automatically verifies that the landlord (or their broker) possesses the legal right to lease the property by linking with Ministry of Justice records.
3. Utility Meter Numbers: The specific meter numbers for electricity and water must be disclosed and attached to the Ejar contract to ensure accurate billing transfer to the tenant.
4. Usage Type: Whether the property is purely residential or has mixed zoning.

Ownership Transfers (Change of Landlord)

If a landlord decides to sell a property that has an active tenant, they must disclose the lease to the buyer. Additionally, they must notify the tenant of the sale.

In Saudi Arabia, an active Ejar residential lease generally survives the sale of the property. The new owner inherits the lease under the identical terms, including the rental rate and expiration date, and cannot prematurely force the tenant out merely because the property changed hands.

Brokerage Disclosures

If a property manager or real estate broker is handling the lease transaction on behalf of the landlord, the broker must:

• Disclose their commission fee openly before the contract is finalized. Under the Real Estate Brokerage Law, commission is generally capped at a strict percentage (often 2.5% of the first year's rent).
• Confirm they are fully licensed by REGA (holding a valid FAL license number).

Move-In Inspection Checklist

While not a "disclosure" in the traditional sense, completing a comprehensive Check-In/Check-Out report on Ejar acts as the definitive disclosure of the property's initial state. Landlords should disclose and notate any pre-existing minor damages so the tenant is shielded from liability for them upon move-out.

Stay fully compliant by maintaining transparent communication and properly filling out all required fields in the Ejar platform. Landager's document management helps you store your property inspection photos and condition reports securely in the cloud.

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