Saudi Arabia on Monday launched a new digital rent network designed to reduce disputes and simplify proceedings for landlords, tenants and agents.
‘Ejar’ will provide contract documentation and e-payments and guarantee the commitment of real estate agents to document a unified lease contract, which will be considered an executive bond, according to Saudi Press Agency.
A registration fee of SAR250 ($67) will be charged for residential rental contracts and SAR400 ($107) for commercial rental contracts.
Communications and IT minister Abdullah Al-Sawahah said the classification of the contract as a bond would allow the holder to directly approach the kingdom’s courts and help avoid long judicial processes.
He added that the new system would automate procedures for more than 2.5 million housing units.
The launch comes a week after the kingdom unveiled plans to spend $32bn on subsidised home loans to boost the housing market.
The housing ministry intends to hand over 125,000 housing units in partnership with the private sector in 2018, compared to 110,000 last year, and is aiming for 480,000 handovers by 2020 and 1.2 million by 2030.
The kingdom aims for the percentage of Saudi citizens that own homes to increase from a current 50 per cent to 60 per cent in 2020 and 70 per cent in 2030