Saudi rent payments must be done through the Ejar platform online, effective January 15
Starting January 15, Saudi Arabia will enforce a significant change in its real estate landscape, requiring all rent payments for residential leases to be processed through the Ejar platform.
New Regulations Effective January 15
The Real Estate General Authority announced that this digital transformation will streamline payment processes for tenants and landlords, enhancing efficiency and transparency.
Ejar Platform
The Real Estate General Authority has specified that the directive applies exclusively to residential leases, leaving commercial leases unaffected. The Ejar platform, an established digital channel, will become the sole medium for rent transactions in the residential real estate sector.
Digital Payment Channel Integration
The integration of digital payment channels through Ejar is not merely a recommendation but a mandatory requirement for all new residential lease contracts. After January 15, any proof of rent payment operations conducted outside the digital framework of Ejar will not be considered valid.
Transition to Automatic Settlement
The Real Estate Authority emphasized a phased transition to streamline processes further. It will gradually cease issuing electronic receipt bonds for new residential contracts as payments made through digital channels in Ejar will be automatically settled. This initiative aligns with Cabinet Resolution No. 131, designed to establish efficient arrangements.
Facilitating Electronic Payment Services
To access the electronic payment service for lease contracts, landlords and tenants must first document the contract in Ejar through a licensed real estate broker sanctioned by the authority. Subsequently, the parties involved can utilize the digital payment channels within Ejar for seamless and efficient payment operations.
Money in the landlord's account within five working days
Upon completion of payments through Ejar's digital channels, the funds will swiftly reach the landlord's bank account within five working days, ensuring a streamlined and prompt financial process.
8 million rental contracts since 2018
Ejar has been an integral part of the real estate industry since its introduction in 2018, managing over 8 million rental contracts. It has been successful in increasing openness, decreasing instances of real estate fraud, and streamlining the payment process for landlords and tenants alike.
To summarize, the real estate market in Saudi Arabia is undergoing a revolutionary change toward efficiency, openness, and modernity with the drive to compel digital rent payments using the Ejar network.
