When is a property considered vacant?

When is a property considered vacant?

With the new trends to regulate the real estate market in the Kingdom of Saudi Arabia and enhance the efficiency of use of residential and commercial units, the list of vacant properties has emerged as one of the important regulatory tools aimed at reducing the survival of properties without exploitation for long periods. 

This regulation raises numerous questions about its application conditions, the properties it covers, the obligations imposed on owners, and the exceptions and cases in which a property is deemed vacant in accordance with regulatory regulations.

To understand real estate regulations and avoid any potential obligations or violations, the Binh application provides you with the ability to communicate with a group of licensed lawyers specialized in real estate cases with ease.

What is meant by vacant properties?

Vacant properties are buildings located within the urban area that have not been used for a period 

Long periods without acceptable justification, the failure of which to use or exploit them affects the provision of sufficient supply in the real estate market.

How do you prove that a property is vacant?

Article 7 of the Executive Regulations for Vacant Real Estate Fees stipulates that buildings located within the urban area are considered vacant when they have not been exploited for a period of 6 consecutive or separate months during the year.

How much are the fees for vacant properties?

An annual fee is imposed on vacant properties at a rate of the equivalent fee and not more than 5% of the property value in accordance with Article 3 of the White Land and Vacant Real Estate Fees System.

How is the reward for the proverb estimated?

The ideal rent and building value are estimated according to the criteria stipulated in Article 4 of the Executive Regulations for Vacant Property Fees, which are:

• Determine the average market value of a building for similar properties in terms of location, type and use.
• Determine the average rent for buildings within the urban area by city.
• The value of the land will be taken into consideration according to the type of use and the location of the building if the building cannot be evaluated due to the lack of a similar property.

What are the conditions for applying the fees included in the list of vacant properties?

Conditions for applying vacant real estate fees within the geographical scope within the city

Article 5 of the Vacant Real Estate Regulations clarifies the criteria that must be met to apply the fee on a geographical scale within the city, which are:

• High rate of vacant properties across the geographic area.
• Higher housing costs relative to annual household income across the geographic range.
• Real estate prices are higher than the Consumer Price Index.
• The rate of vacant properties is high for those who own more than one vacant property within the geographical area.

When is a vacant property subject to fees?

When is a vacant property subject to fees?

The following conditions must be met to subject the vacant property to the application of fees in accordance with Article 8 of the Regulations:

• The building must be located within the scope of application of the drawing.
• The building must be occupyable or have its own occupancy permit certificate, depending on the type of use and the location of the property within the city.
• The building must be used within the uses specified in the decision issued by the Minister of Municipalities and Housing.
• The number of vacant properties owned by a person within the scope of application must not be less than the minimum stated in the decision.
• Failure to achieve the minimum consumption of benefits and services allocated to the type of building use.

Are you facing inquiries about vacant properties or need to review your regulatory obligations? With the office of lawyer Abdul Majeed Al Rashid, you can easily communicate with a specialized real estate lawyer who will help you understand real estate regulations and protect your legal interests professionally.

What are the obligations of those charged with paying vacant real estate fees?

What are the obligations of those charged with paying vacant real estate fees?

• The taxpayer is obligated to pay the fee and any fine resulting from violating the provisions of the White Land Fees System, vacant properties, or the executive regulations.
• The taxpayer must pay the value of the fee within 6 months from the date of notification of the fee invoice.
• The taxpayer is obligated to pay part of the fee in proportion to his share of ownership of vacant properties if the vacant property subject to the application of the fee is owned by more than one person.

When do vacant property fees stop being applied?

The application of vacant property fees in accordance with Article 10 of the Regulations shall cease when any of the following criteria are met during the year:

• The absence of any of the requirements for applying the fee to vacant properties contained in Article 8 of the Executive Regulations for Vacant Property Fees.
• The presence of an impediment preventing the building from being occupied, provided that the owner is not responsible for or involved in the impediment.
• Transfer of ownership of the building through sale, in accordance with a regulatory document.
• Issuance of an occupancy permit certificate for the building during the year, except for buildings that have achieved total electricity release before the date of issuance of the occupancy certificate.
• If the vacancy is due to urgent and significant reasons, provided that the building is registered as the main address of the property owner.

Real estate lawyer from the office of lawyer Abdul Majeed Al Rashid

In real estate cases, having a skilled, professional attorney can make the difference between protecting your rights and getting into complex legal disputes. 

Through the office of Attorney Abdulmajeed Al-Rasheed, you can benefit from the expertise of licensed attorneys who help you review contracts, understand real estate regulations, and represent you effectively in various real estate matters.