The "Wafi" program under the Ministry of Municipal and Rural Affairs and Housing fundamentally changed off-plan sales rules in Saudi Arabia: no developer may sell a real estate unit before completion without an official program license, and a dedicated bank escrow account for the project can only be drawn from per completion percentages certified by an independent engineering office. Before buying any off-plan unit, verifying the project's license number on the Wafi platform is a first step that shouldn't be skipped.
All your payments are deposited into an independent bank escrow account, and the developer may not withdraw any amount from it except according to actual completion stages certified by an independent engineering office reporting periodically to the competent committee. This prevents your money being used in the developer's other projects or for personal purposes, and the account custodian retains 5% of the construction value (or an equivalent bank guarantee) until a full year has passed since the contractor delivered the project to the developer.
If the developer delays delivering the unit for reasons within their control, the buyer is entitled to compensation no less than the unit's fair rental value from a certified appraiser (or 2% annually of the sale value if the project is developed land). This minimum is statutory, and the developer may not stipulate lower compensation in the contract.
The structural defect warranty extends 10 years from the delivery date, while the finishing and other works warranty extends only one year. Knowing this difference matters when discovering a defect later, to determine whether it still falls within the active warranty period.
To purchase an off-plan unit or address a stalled project dispute in Jeddah, contact us on WhatsApp.
You may also find it useful to review Real Estate Developer Disputes Lawyers in Jeddah or Title Deed & Land Disputes Lawyers in Jeddah, both topics our team handles regularly in Jeddah and which may relate to your situation.Reach out now on WhatsApp or by phone: a licensed Jeddah lawyer will respond quickly.
💬 Message us on WhatsApp