The impact is considerable. For example, it could be argued that an unregured lease may not be forcibly invoked in court. However, in good conscience, the circular was not taken into account by the courts. Given the impact of the circular, we expect the courts or moh to negotiate a solution that will allow the courts to rule on the terms of the lease in question. Western expatriates who come to Saudi Arabia generally choose recomposed life. These closed premises have high security and higher walls and are very safe. Within these walls, infrastructure, you will feel like you live in a well-maintained European suburbs. Therefore, if you have a family, this type of rental is particularly recommended. The use of the Single Housing Contract (URC) is mandatory to facilitate registration in the Ejar system. In January 2019, the Ministry of Justice issued a circular that states that unregistered leases (residential and commercial contracts) cannot be taken into account by the courts. Keep in mind that the rental market in Saudi Arabia is often fluctuating. Therefore, it is best to do a comparative study of online resources before you start looking for a place.
Once completed, a new screen appears with a confirmation message that the house rental contract (Ejar) has been accepted electronically. Brokers typically charge about 2.5% of the annual rental value. But feel free to negotiate. The rental process is quite efficient, with contracts that are annual. It is possible that all agreements will be concluded in Arabic, so it is imperative that you view a translated version in English and/or receive expert advice on it. Unfortunately, there is no way to verify the Ejar contract by Absher once it is approved by the tenant. However, you can download a copy of the housing contract via the Ejar system. Although the registration and authentication processes are very simple, the new law is likely to have an impact on the total time it takes to complete the immigration process in Saudi Arabia. It will increase the cost of obtaining employment status and complicate the situation for those who share housing. In the end, it is not uncommon for companies to house their employees in service apartments with leases established on behalf of employers – will the labour authorities accept such contracts? What is the impact of the lease in Saudi Arabia on employers? All leases in Saudi Arabia must necessarily be registered on the Ejar electronic system; an online portal that monitors your rental area. This has all the details of the landlord, tenants and agents, so it is transparent from the beginning and minimal litigation. If you do not register with Ejar as a tenant, your work permit will not be renewed.
The Ministry of Labour and Social Development has announced that a rental contract certified by the Ministry of Housing will be mandatory for the renewal of the work permit in Saudi Arabia from September 2018. The certified contract also becomes mandatory for those applying for a new work permit; However, the exact date of implementation of this new requirement for first applicants has not yet been announced. Learn more about the subject in this warning here. If all goes well, you can accept the lease in Saudi Arabia by clicking on the “Accept” button. On the next screen, you need to confirm acceptance. In compounds, rents generally include royalties for basic services such as water, electricity, gas, fixed rental (non-mobile) and Internet/Wi-Fi. Rent must also be taken into account when cleaning and maintaining all common areas of the complex. Here, on this screen, you can also see if your landlord creates bills for all the rents you have paid. As you can see below, four invoices were generated on my account for quarterly payments.