In Saudi Arabia, landlords can seek fines if tenants violate contract terms

In Saudi Arabia, landlords can seek fines if tenants violate contract terms

According to the Ejar platform, if the tenant does not leave the property after the agreed-upon duration has passed, the landlord may file a lawsuit and demand a fine for each day of delay. This action may only be performed if the rental agreement specifies that the tenant would be fined if he failed to vacate the property by the end of the agreed-upon period.

The Ejar said this in a statement posted on its X account, in response to an inquiry by a person about the mechanism through which the tenant can be asked for rent if he is late in vacating the property after the end of the contract period. “When there is an option of imposing a fine daily in the contract, a claim can be made for each day of delay through the execution court if the contract is an executive document. The landlord can approach the judiciary if the contract is a non-executive document,” it said.

The Real Estate General Authority recently declared that, as of January 15, it will start limiting the financial transactions associated with rent payment operations via the Ejar platform’s digital channels. Ejar has approved Mada or SADAD as digital payment channels, which can be accessed by using the biller number 153. Ejar clarified that the platform’s adoption of the digital payment mechanism is a step toward putting the Council of Ministers’ decision into action.

The authority clarified that payment of rent through Ejar includes all new residential rental contracts. “After Jan. 15, any proof of rent payment operations outside the framework of digital channels of Mada and SADAD on Ejar, using the number 153, will not be counted. As of now, this directive does not include commercial rent contracts,” it said.

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