With effect from Monday, January 15, the Real Estate General Authority of Saudi Arabia has started to limit rent payment transactions through the digital channels of the Ejar platform.
Ejar has approved Mada or SADAD as digital payment channels, which can be accessed by using the biller number 153. Ejar made it clear earlier this month that the platform’s adoption of the digital payment mechanism is a step toward putting the Council of Ministers’ decision into action.
For new residential contracts, the authority announced that it will progressively stop issuing electronic receipt vouchers because payments made through digital channels will be settled automatically and no receipt voucher will be required. This is in response to a Cabinet decision to set up the required framework for an electronic rent contract payment service.
The authority emphasized that this step starts with the landlord and tenant documenting the rental agreement on Ejar through a real estate broker licensed by the authority. After that, the landlord registers the rental payment in their rental contract and pays it through digital channels, which arrive at their bank account five working days later.
The benefits of digital payment have been illustrated by the Ejar; the three main ones are that the parties to the rental agreement’s rights are preserved, financial payments are tracked, and electronic receipt documentation is not needed.