With the implementation of the Real Estate Registration in Kind Law, the process of Transferring Property Ownership in Saudi Arabia has changed. For properties already recorded in the Real Estate Registry, ownership transfers are now completed through the Registry’s services in accordance with the applicable requirements, rather than through the traditional conveyance process used for properties that have not yet been registered in kind.
At Al-Shatiri & Al-Ghamdi Law Firm, we regularly encounter transactions that are delayed because one of the parties has not distinguished between a traditional property conveyance and an ownership transfer through the Real Estate Registry. This guide explains the proper procedure, required documents, fees, expected processing times, and the key matters to review before starting the transaction.
Transferring Property Ownership in Saudi Arabia in kind is carried out through the Real Estate Registry platform. The property must already be registered in the Registry, all service requirements must be satisfied, the consent of the relevant owners and rights holders must be obtained, and Real Estate Transaction Tax must be paid where applicable together with obtaining the relevant reference number. The Authority then issues the title registration deed based on the information recorded in the Real Estate Registry, which has the evidentiary force prescribed by law.
Are you concerned that the sale of your registered property may be delayed because of a restriction, missing document, or tax issue? The team at Al-Shatiri & Al-Ghamdi Law Firm can review the title deed, registered restrictions, and proposed transaction before you begin, helping you reduce the risk of rejection or delay on the Real Estate Registry platform.
The Difference Between Transferring Ownership of a Registered Property and Traditional Conveyance
| Property Status | Platform | Supervising Authority |
|---|---|---|
| Property registered in kind, whether located within an announced registration area or registered voluntarily | Real Estate Registry Platform – rer.sa | Real Estate General Authority |
| Property not registered in kind | Najiz Platform / Notary Public | Ministry of Justice |
Once the ownership transfer has been completed in the Real Estate Registry, the ownership information is updated and a title registration deed is issued based on the information recorded in the Registry. The Real Estate Registry has absolute evidentiary authority in accordance with the provisions of the Real Estate Registration in Kind Law, issued by Royal Decree No. M/91 dated 19/9/1443 AH.
When Is a Property Considered Registered in Kind?
A property is considered registered in kind in any of the following circumstances:
- It is located within an area announced by the Real Estate General Authority and was registered within the prescribed registration period.
- An application for voluntary registration in kind was submitted through the service for registering properties outside announced areas and the application was approved.
- The property appears in your account on rer.sa with a valid electronic title registration deed.
To verify the status of your property, log in to the Real Estate Registry platform at rer.sa through National Single Sign-On. Registered properties will appear in your account, together with the available transaction services.
Requirements for Transferring Ownership of a Property Registered in Kind
According to the published requirements of the Real Estate General Authority’s ownership transfer service, the following basic requirements must be satisfied:
| Requirement | Details |
|---|---|
| The property must be registered in kind | The ownership transfer service applies to properties recorded in the Real Estate Registry. |
| Valid national ID or residency permit | Individual parties to the transaction must have a valid national ID or residency permit. |
| Valid commercial registration | Required where a private business entity is a party to the transaction. |
| Consent of relevant parties | The consent of owners and rights holders must be obtained in accordance with the rights and restrictions recorded against the property. |
| Valid power of attorney | Required where an application is submitted by an authorised representative on behalf of an interested party. |
| Compliance with tax requirements | Real Estate Transaction Tax must be paid where applicable, and the relevant transaction reference number must be obtained. |
Documents Required for the Ownership Transfer
- The updated electronic title deed.
- A valid national ID or residency permit for both parties.
- A valid commercial registration for business entities.
- A valid power of attorney where one of the parties is represented by an agent.
- An inheritance certificate where the property forms part of an estate.
- Documents or approvals relating to mortgages, rights, or restrictions recorded against the property, depending on the circumstances of the transaction.
- Evidence of payment of Real Estate Transaction Tax issued through the Zakat, Tax and Customs Authority platform.
Steps for Transferring Ownership Through the Real Estate Registry
After satisfying the requirements relating to the real estate transaction and paying Real Estate Transaction Tax where applicable, the ownership transfer application may be started through the Real Estate Registry services. The Real Estate General Authority outlines the main procedure as follows:
| Step | Procedure |
|---|---|
| 1 | Log in using National Single Sign-On. |
| 2 | Select the registered property for which ownership is to be transferred. |
| 3 | Complete the ownership transfer service form and enter the required information. |
| 4 | Upload the documents and supporting requirements applicable to the transaction. |
| 5 | Pay the service fee displayed according to the type of service. |
| 6 | Submit the application and complete any approvals or procedures required from the parties to the transaction. |
Ownership Transfer Fees and Real Estate Transaction Tax
It is important to distinguish between the service fee charged through the Real Estate Registry and Real Estate Transaction Tax. The Real Estate General Authority states that the cost of the ownership transfer service varies according to the type of service, while real estate transactions are subject to Real Estate Transaction Tax unless a statutory exemption applies.
| Item | Amount or Calculation Method | Authority |
|---|---|---|
| Ownership transfer service fee | Varies according to the type of service and is displayed to the applicant when the transaction is processed. | Real Estate Registry / Real Estate General Authority |
| Real Estate Transaction Tax | 5% of the value of the taxable transaction, unless a statutory exemption applies. | Zakat, Tax and Customs Authority |
Real Estate Transaction Tax is governed by the Real Estate Transaction Tax Law and is imposed at a rate of 5% on the value of a taxable transaction. Certain transactions may qualify for exemptions or exclusions under the Law and its Implementing Regulations. The applicability of any exemption should therefore be verified through the Zakat, Tax and Customs Authority before completing the transaction.
How Long Does the Ownership Transfer Take and When Is the New Title Registration Deed Issued?
There is no single fixed processing period for every ownership transfer application. The Real Estate General Authority states that processing time varies according to the type of service and the circumstances of the application.
In sale transactions, transferring the purchase amount to the beneficiary’s bank account may take up to three business days from the date on which the property’s value is deposited. This period includes the procedures required to complete the transfer of ownership and the integration of the relevant electronic systems.
Once the transaction has been completed and the Real Estate Registry has been updated, the Authority issues the title registration deed based on the information recorded in the Registry. Under the Real Estate Registration in Kind Law, the Real Estate Registry has absolute evidentiary authority in accordance with the provisions of the Law.
Transfer of Ownership by Gift or Inheritance for Registered Properties
Different types of transactions are processed through broadly similar Real Estate Registry procedures, although important differences apply depending on the nature of the transaction.
1. Gifts
- The transaction may be processed through the ownership transfer service by selecting “Gift” as the type of transaction.
- Certain gifts may qualify for exemptions or exclusions from Real Estate Transaction Tax under the Real Estate Transaction Tax Law and its Implementing Regulations. The conditions applicable to the specific transaction should therefore be verified with the Zakat, Tax and Customs Authority before completion.
- It may be advisable to document the reason and terms of the gift through an appropriate formal declaration to reduce the risk of future disputes.
2. Inheritance
- A duly documented inheritance certificate is required.
- A joint title deed or individual title deeds may be issued to the heirs depending on the distribution of the estate.
- It may be advisable to complete the legal settlement of the estate before any joint sale takes place.
3. Transfer or Partition Between Co-Owners
- These transactions may be processed through the relevant subdivision or rights management services available on the platform.
- A written and duly approved agreement between the owners may be required.
Special Cases: Mortgages, Restrictions and Multiple Owners
- Mortgaged property: The applicable requirements concerning the mortgage, including any required consent from the mortgagee or registration of the relevant mortgage transaction, must be completed before or as part of the ownership transfer process.
- Property subject to a judicial restriction: The restriction must be dealt with in accordance with the applicable legal requirements before a transaction can be completed.
- Multiple owners: All relevant owners must approve the ownership transfer electronically, unless one or more owners are validly represented under a power of attorney.
- A minor among the owners: The applicable judicial authorisation requirements must be satisfied before the minor’s interest in the property can be transferred.
Common Issues That May Delay the Ownership Transfer
- An electronic title deed that has not been updated or is still being processed.
- A discrepancy between the transaction value registered with ZATCA and the value agreed between the parties.
- A mortgage or registered right for which the required approvals or procedures have not been completed.
- A power of attorney that does not expressly authorise the sale or transfer.
- A buyer who is not properly registered on the platform or does not have access through National Single Sign-On.
- Failure to complete the applicable tax requirements before starting the transaction.
- Multiple owners where the required approvals have not been obtained from all relevant parties.
When Should You Consult a Real Estate Lawyer?
Legal assistance from a real estate lawyer may be particularly useful in the following circumstances:
- High-value transactions, commercial properties, or real estate complexes.
- Ownership transfers between partners or heirs where a dispute may arise.
- Transactions involving deferred payments or mortgages.
- The sale of property to a non-Saudi buyer where additional legal requirements may apply.
- Reviewing the sale agreement, contractual protections, and penalty clauses.
- Representation before the Real Estate General Authority or ZATCA in the event of a dispute.
You may benefit from our Real Estate Registration Service to have your property file reviewed before beginning the procedure. You may also browse all of our legal services or contact us directly through our Contact Us page.
Frequently Asked Questions About Transferring Property Ownership in Saudi Arabia
Should I Go to the Notary Public or the Real Estate Registry to Transfer Ownership of a Property Registered in Kind?
If the property is registered in kind, the correct procedure is completed through the Real Estate Registry platform at rer.sa, rather than through a Notary Public or the Najiz platform
How Long Does It Take to Transfer Ownership of a Property Registered in Kind?
Once the required approvals, fees, and tax requirements have been completed, the processing time varies depending on the type of service and the circumstances of the transaction.
How Much Does It Cost to Transfer Ownership of a Property Registered in Kind?
The service fee varies depending on the type of transaction and is displayed during the application process. Real Estate Transaction Tax is generally imposed at 5% of the value of the taxable transaction unless a statutory exemption or exclusion applies
Can Ownership of a Mortgaged Property Be Transferred?
Yes, subject to completing the applicable requirements relating to the registered mortgage, including any required consent from the mortgagee or registration of the relevant mortgage transaction.
What Is the Difference Between Conveyance Through Najiz and Through the Real Estate Registry?
Najiz is generally used for properties that have not been registered in kind and falls under the supervision of the Ministry of Justice. Ownership transfers for properties registered in kind are processed through rer.sa under the supervision of the Real Estate General Authority. The Real Estate Registry has the evidentiary authority prescribed under the Real Estate Registration in Kind Law.
Do I Need a Lawyer to Complete the Ownership Transfer?
Hiring a lawyer is not generally a statutory requirement. However, legal assistance can be particularly important in complex or high-value transactions, or where the property involves multiple owners, heirs, mortgages, registered rights, or an existing dispute.
Transferring Property Ownership in Saudi Arabia in kind is a structured electronic procedure designed to improve the efficiency of the Saudi real estate market and protect the rights of the parties involved. However, it requires a clear understanding of the distinction between a Registry-based ownership transfer and traditional conveyance, as well as proper preparation of the title information, registered rights and restrictions, and tax requirements before the transaction begins.
If you are preparing to sell or purchase a property registered in the Real Estate Registry, an initial legal review can help identify potential issues before the transaction is submitted and reduce the risk of unnecessary delays or rejection.
Sources:
- Real Estate Registration in Kind Law – Bureau of Experts at the Council of Ministers
- Implementing Regulations of the Real Estate Registration in Kind Law – Real Estate General Authority
- Ownership Transfer Service for Properties Registered in Kind – Real Estate General Authority
- Official Real Estate Registry Platform
- Real Estate Transaction Tax – Zakat, Tax and Customs Authority
- Real Estate Transaction Tax Law – Bureau of Experts at the Council of Ministers
- Real Estate Transaction Registration Service – ZATCA
