REGULATION NO.3 Real Estate and Municipal Regulations

Real Estate and Municipal Regulations

REGULATION NO.3

July 2012

2 REGULATION NO.3 – REAL ESTATE AND MUNICIPAL REGULATIONS

Preamble ............................................................................................ 7

Part 1 – ECA Authority ...................................................................... 13

Article 1 Definitions ..........................................................................................9

Article 2 Authority of the ECA ..........................................................................10

Article 3 Scope .............................................................................................10

Article 4 60/24/7 Compliance ..........................................................................10

Part 2 – The Real Estate and Municipal Agency ................................ 13

Article 5 Establishment of the Real Estate and Municipal Agency ..........................13

Article 6 Delegation of Duties ..........................................................................13

Article 7 Duties and Powers ............................................................................13

Article 8 Committees/Delegation .....................................................................14

Article 9 Liability and Ability to Bring Suit .........................................................15

Article 10 Licensing and Outsourcing Authority ....................................................15

Article 11 Revenue Sharing, Partnerships, Contracts ............................................16

Article 12 Information Gathering .......................................................................16

Article 13 Procedure for Amendments ................................................................16

Article 14 Property ..........................................................................................17

Article 15 Dispute Resolution ............................................................................17

Article 16 Finances ..........................................................................................17

Article 17 Investigation and Enforcement ...........................................................17

Article 18 Municipal Activities............................................................................18

Article 19 Access and Inspection .......................................................................18

Part 3 – Master Developer and the Masterplan ................................. 21

Article 20 Role of the Master Developer ..............................................................21

Article 21 Outsourcing and Contracting ..............................................................21

Article 22 Masterplan .......................................................................................22

Article 23 Oversight ........................................................................................23

Article 24 Approval of the Masterplan .................................................................23

Article 25 Changes to the Masterplan .................................................................23

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Article 26 Incorporation of Codes and Requirements ............................................23

Article 27 Zoning ............................................................................................24

Article 28 Designation of Lots, Plots, Tracts and Apartments .................................24

Part 4 – Building Codes, Construction Permits, Occupancy Certificates ..................................................................... 27

Article 29 Building Codes .................................................................................27

Article 30 All Construction to Follow Codes .........................................................27

Article 31 Certification of Plans .........................................................................27

Article 32 Establishment of Designated or Approved Consultants ...........................27

Article 33 Construction Permits .........................................................................27

Article 34 Condominiums and Other Multi-Ownership Developments ......................28

Article 35 Changes to Proposed Plans ................................................................29

Article 36 Inspections of Construction ................................................................29

Article 37 Certificates of Completion ..................................................................29

Article 38 Certificate of Occupancy ....................................................................29

Article 39 Operations Permits............................................................................30

Article 40 Condemnation ..................................................................................30

Article 41 Power to Outsource ...........................................................................30

Part 5 – The Land Registry ............................................................... 33

Article 42 Establishment of a Land Registry and Department .................................33

Article 43 Purpose ...........................................................................................33

Article 44 Interests Recorded ............................................................................33

Article 45 Interests Not Recorded ......................................................................34

Article 46 Form and Functioning of the Registry...................................................34

Article 47 Effect of Registration and Unregistered Interests ...................................34

Article 48 Form of Registration ..........................................................................34

Article 49 Notary Public....................................................................................35

Article 50 Priority of Instruments ......................................................................35

Article 51 Correction of Error ............................................................................35

Article 52 Liability for Error...............................................................................35


Article 53 Adverse Possession and Squatting .......................................................35

Article 54 Registry Checks ................................................................................36

Article 55 Fees ................................................................................................36

Article 56 Initial Creation of Dossier...................................................................36

Article 57 Penalties..........................................................................................36

Part 6 – Ownership and Transferability ............................................ 39

Article 58 Ownership and Transfer .....................................................................39

Article 59 Ownership by Non-Saudis ..................................................................39

Article 60 Ownership Certificates .......................................................................39

Article 61 Tenancy in Common ..........................................................................39

Article 62 Life Estates and Estates of Years .........................................................39

Article 63 Reversions and Remainders ................................................................39

Article 64 Heritability .......................................................................................39

Article 65 Waqfs and Trusts ..............................................................................40

Article 66 Merger and Divisibility .......................................................................40

Article 67 Effect of Registration of Transfer .........................................................40

Article 68 Eminent Domain. ..............................................................................40

Part 7 – Easements and Covenants .................................................. 43

Article 69 Easements Permitted ........................................................................43

Article 70 Requirement of Registration of Easements............................................43

Article 71 Rights of Support ..............................................................................43

Article 72 Implied Easements in Developed Areas ................................................43

Article 73 Implied Easements in Subdivision Plans ...............................................44

Article 74 Variation or Release of Easement ........................................................44

Article 75 Cancellation of Easement ...................................................................44

Article 76 Power to Order Easement ..................................................................44

Article 77 Public Easements ..............................................................................45

Article 78 Covenants Permitted .........................................................................45

Article 79 Requirement of Registration of Covenants ............................................45

Article 80 Variation or Release of Covenant .........................................................45

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Article 81 Cancellation of Covenant ...................................................................45

Part 8 – Caveats and Liens ............................................................... 47

Article 82 Caveats and Liens Permitted ..............................................................47

Article 83 Requirements of Registering Caveats and Liens .....................................47

Article 84 Effect of Caveat or Lien .....................................................................47

Article 85 Withdrawal of Caveat or Lien ..............................................................47

Article 86 Lapsing of Caveat or Lien ...................................................................47

Article 87 Cancellation of Caveat or Lien ............................................................48

Article 88 Further Caveat or Lien .......................................................................48

Article 89 Improper Caveat or Lien ....................................................................48

Part 9 – Leasing ............................................................................... 51

Article 90 Leasing Permitted .............................................................................51

Article 91 Requirement of Lease ........................................................................51

Article 92 Registration of Leased Interests ..........................................................51

Article 93 Tenancy Periods ................................................................................51

Article 94 Termination......................................................................................51

Article 95 Sub-Leasing .....................................................................................52

Article 96 Requirements of Lessor .....................................................................52

Article 97 Requirements of Lessee .....................................................................52

Article 98 Eviction ...........................................................................................52

Article 99 Death ..............................................................................................53

Article 100 Transfer ...........................................................................................53

Article 101 Dispute Resolution ............................................................................53

PREAMBLE

7JULY 2012

Consistent with the authority expressed in the Executive Regulation (Regulation No. 1), and in order to ensure the safe and proper development and functioning of the land and real estate of the Economic Cities of the Kingdom of Saudi Arabia, the Economic Cities Authority hereby enacts and promulgates these regulations.

Preamble

PART 1

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Article 1 Definitionsa. 60/24/7: That all services will be delivered within a period not exceeding sixty (60)

minutes, twenty-four (24) hours a day, throughout the week.

b. Appurtenant: Relating to adjacent real estate.

c. Caveats: A formal notice of an unregistered interest in real estate. Once lodged with the Land Registry, this notice prevents the Land Registry from recording any dealing affecting the estate or the interest claimed.

d. Covenant: A promise made in a deed or implied by law that real estate will be used or not used in a certain way, or imposing obligations on the landowner.

e. Defeasible Estate: An estate that may come to an end before its maximum duration has run because of the operation of a special limitation, condition, or the failure to fulfill specified obligations.

f. Dues, Fees: Any charge made to users.

g. Easement: An interest in land which is owned by a person who is not the primary land owner, or attached to a separate deed or land, consisting in the right to use or control the land, or an area above or below it, for a specific limited purpose.

h. Economic Cities Authority (“ECA”): The Economic Cities Authority or its designee(s).

i. ECA Statute: Royal Order No. (A/19) - The Economic Cities Authority Statute.

j. Encumbrance: Any claim or liability that is attached to real estate, or some other interest therein, and that may lessen its value, such as a lien or mortgage; any property right that is not an ownership interest.

k. In Gross: Relating to parties or non-adjacent real estate.

l. Interest: Any legal claim to, share, ownership, or any other right in real estate.

m. Interested Party: An interested party is any party who holds an interest in land or real estate. Such interests include, but are not limited to, ownership rights, including tenancies in common, or other shared ownership structures; trusts; waqfs; life estates; tenancy for years; usufruct; defeasible estates, remainders and reversions; easements: public, private, affirmative, negative, appurtenant and in gross; covenants: affirmative, negative, appurtenant and in gross; caveats; liens; mortgages; leases; or any other encumbrances, claims, or interests in the property.

n. Licensee: Any person or corporate body licensed to provide a specific service or work in the Economic Cities.

Part 1 ECA Authority


o. Liens: A legal right or interest that a creditor has in another’s property, lasting until a debt or duty that it secures is satisfied, or otherwise relieved by action of law.

p. Life Estate: An estate held only for the duration of a specified person’s life.

q. Master Developer: The Master Developer is the lead, or top-level developer licensed in any of the Economic Cities.

r. Masterplan: The designs, plans and other documents created by the Master Developer pursuant to the Master Developer Agreement, and approved by the ECA, which specify the design, plan, construction and development of the Economic Cities.

s. Outsource Contractor: Any person or corporate body who the ECA outsources a particular function or responsibility to.

t. Real Estate: Any plot, lot, tract, building, apartment, unit, development, or other immovable property.

u. Remainder: A future interest arising in a third person that is someone other than the estate’s creator, its initial holder, or the heirs of either, who is intended to take ownership after the natural termination of the preceding estate.

v. Reversion: The interest in real estate that remains after the full owner grants an interest that is less than full ownership to another. Such interest may revert back to the original owner when the granted interest ends.

w. Tenancy: The possession of real or personal property by right or title.

x. Tenancy for Years: A tenancy whose duration is defined for a specified period.

y. Tenancy in Common: A tenancy by two or more persons, in equal or unequal undivided shares, each person having an equal right to possess the whole property but no right of survivorship.

Article 2 Authority of the ECAConsistent with the authority expressed in the Executive Regulation (Regulation No. 1), the Economic Cities Authority has the power to regulate and manage all lands, buildings, developments, and their construction and use, in the Economic Cities of the Kingdom of Saudi Arabia.

Article 3 ScopeThese Regulations, and any other Regulations, Rules, Policy Statements, or Executive Orders, as issued by the ECA or its Agencies, shall apply to all lands and real estate within the Economic Cities.

Article 4 60/24/7 Compliance The ECA and its Agencies shall seek to provide all services, permissions, licenses, requests, registrations, inspections and approvals according to the 60/24/7 framework.

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PART 2

13JULY 2012

Article 5 Establishment of the Real Estate and Municipal Agencya. The ECA shall establish an ECA Agency, to be known as the “Real Estate and Municipal

Agency.”

b. All Real Estate and Municipal Agency officials shall be appointed by the ECA Secretary General.

c. The Real Estate and Municipal Agency shall have any and all duties, powers and responsibilities as delegated by the ECA in these Regulations.

d. The Real Estate and Municipal Agency shall report on its activities to the ECA Secretary General and the Board.

Article 6 Delegation of DutiesPursuant to the grant of authority described in the Executive Regulation (Regulation No. 1), and the limitations thereto, the ECA hereby delegates all its authority, powers, and responsibilities over the areas of land use and real estate to the Real Estate and Municipal Agency.

Article 7 Duties and Powersa. Pursuant to the grant of authority and the limitations thereto, the Real Estate and Municipal

Agency shall have all powers listed below and described within these Regulations.

i. The Real Estate and Municipal Agency is the sole authority governing the management and regulation of land use, real estate, and construction and development within the Economic Cities.

ii The Real Estate and Municipal Agency shall have the power to promote the use, improvement and development of the land and real estate of the Economic Cities.

iii. The Real Estate and Municipal Agency shall have the power to ensure the safety and security of persons, owners, tenants, occupants, developers, construction companies, contractors and workers, and users, and ensure the protection of the land, air and marine environment in the Economic Cities.

iv. The Real Estate and Municipal Agency shall have the sole authority to issue and set Rules, standards, procedures and requirements for the lands and real estate of the Economic Cities, and their title, transfer, encumbrance, development, zoning and design, as per the procedures specified in the Executive Regulation (Regulation No. 1).

Part 2 The Real Estate and Municipal Agency


v. The Real Estate and Municipal Agency shall have the power to issue all Certificates of Ownership and shall maintain a registry to record all title, transfer, and encumbrances on lands, real estate and developments.

vi. The Real Estate and Municipal Agency shall have the authority to approve, oversee, and enforce the Masterplan as developed, submitted, and executed by the Master Developer.

vii. The Real Estate and Municipal Agency shall have the authority to set standards for the design, development, construction and repair of the lands, real estate, buildings, improvements and developments of the Economic Cities, and any related infrastructure.

viii. The Real Estate and Municipal Agency shall govern, regulate and license to ensure the upkeep, maintenance, repair and construction of all lands, real estate, buildings and developments of the Economic Cities.

ix. The Real Estate and Municipal Agency shall govern, regulate and license all activities carried on in relation to the lands, real estate, buildings, improvements and developments of the Economic Cities.

x. The Real Estate and Municipal Agency shall have the authority to levy dues, fees, and other charges as appropriate for granting licenses, permits, approvals, consents, and for provision of services and regulation of facilities.

xi. The Real Estate and Municipal Agency shall have the responsibility for the investigation of violations of these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders or Manuals.

xii. The Real Estate and Municipal Agency shall have the authority to set penalties and compensation for violations of these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders or Manuals.

xiii. The Real Estate and Municipal Agency may carry on any such activities as are advantageous, necessary, reasonable or convenient to perform its duties and functions under these regulations.

xiv. The Real Estate and Municipal Agency shall have, in the case of emergency, the power to seize property, order evacuations, direct routes of movement, and any and all necessary powers to ensure the safety and well-being of the population of the Economic Cities.

xv. In addition to the functions, roles, responsibilities and duties set forth in these Regulations, the Real Estate and Municipal Agency shall also undertake any additional responsibilities as deemed appropriate or necessary by the ECA Secretary General.

b. No part of these regulations shall be read to limit, restrict or otherwise constrain the authority of the ECA.

Article 8 Committees/DelegationThe Real Estate and Municipal Agency shall have the power to delegate any of its responsibilities or powers to boards, committees or sub-committees, or other similar bodies. Such delegation shall not detract in any way from the Real Estate and Municipal Agency’s final authority over any and all areas delegated.

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Article 9 Liability and Ability to Bring Suita. The Real Estate and Municipal Agency shall have the ability to bring claims against any

and all parties, in negligence, tort, contract, commercial or real property law for any harms, damages or breaches caused in and relating to the land, land use, real estate, construction, development, zoning, buildings, improvements or any other related areas in the Economic Cities.

b. The Real Estate and Municipal Agency shall be immune from liability for any claims that it has failed to fulfill any obligations under promulgated regulations, for claims based on the acts of licensees, outsource contractors, or others who retain delegated authority, or for claims for damages based on the issuance of permits, licenses, approvals or the registration of ownership interests or encumbrances.

c. Damages for any claims made against the Real Estate and Municipal Agency for other acts shall be limited by a reasonable cap to be determined by the ECA Board.

d. There shall be no personal liability of the members, officers and employees of the Real Estate and Municipal Agency, or those delegated, licensed or authorized to act on their behalf, for any claims based on acts done under the direction of the ECA or the Real Estate and Municipal Agency, in good faith, or intended to be done pursuant to law.

Article 10 Licensing and Outsourcing Authoritya. In accordance with the requirements and procedures set forth in the ECA Licensing

Regulations, the Real Estate and Municipal Agency shall have the authority to grant licenses for Master Developers, developers, contractors, sub-contractors, construction entities, designers, engineers, architects, inspectors, brokers, sales representatives, or any other service providers engaged in the design, construction, development, building, sale, or transfer of land or real estate within the Economic Cities.

i. No party shall provide any design, construction, development, building, sale, transfer, or related services and facilities without a license from the Real Estate and Municipal Agency.

ii. All such licensees shall comply with these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, Manuals, or other Regulations as promulgated by the ECA or its Agencies, subdivisions, or licensees.

iii. The Real Estate and Municipal Agency shall maintain a regulatory framework in respect to the provision of design, construction, development, building, sale, or transfer services and facilities which promotes and safeguards competition and fair and efficient market conduct, or in the absence of a competitive market, which prevents the misuse of monopoly power.

b. In accordance with the requirements and procedures set forth in the ECA Licensing Regulations, the Real Estate and Municipal Agency shall have the authority to outsource some, part or all of its duties under these Regulations to any companies, institutions, or contractors as is necessary for its continued efficient operations. All such outsourcing contractors shall comply with these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, Manuals, or any other Regulations as promulgated by the ECA or its Agencies, subdivisions, or licensees. Such outsourcing shall


not detract in any way from the Real Estate and Municipal Agency’s final authority over any and all areas outsourced. The Real Estate and Municipal Agency shall ensure that outsource contractors are able to provide the services outsourced while maintaining independent financial viability.

c. Where the Real Estate and Municipal Agency finds that a licensee, contractor or outsourcing contractor who is performing a Real Estate and Municipal Agency or other public function, or providing services for the Real Estate and Municipal Agency, has failed to discharge, or is not discharging, its obligations according to the terms of its agreement, the Real Estate and Municipal Agency may take any necessary steps to ensure that such functions and services are provided. The Real Estate and Municipal Agency may penalize any such licensee, contractor or outsourcing contractor, and provide any contracted, licensed or outsourced services at such licensee, contractor or outsourcing contractor’s expense. Alternatively, the Real Estate and Municipal Agency may exercise authority to takeover and manage the services and related property and infrastructure of the licensee, contractor or outsourcing contractor to ensure that public services and operations are not interrupted. Such remedies shall be specified in the license, contract or outsource contract.

d. All transfers, modifications, suspensions, or cancellations of licenses or outsource contracts shall be in accordance with the requirements or procedures of the ECA Licensing Regulations.

Article 11 Revenue Sharing, Partnerships, ContractsThe Real Estate and Municipal Agency shall have the authority to enter into and be bound by contracts, and shall have the power to initiate or participate in activities with private, public, non-governmental and other entities as may be reasonable or necessary for the efficient design, development, construction, and maintenance of the lands and real estate of the Economic Cities. Such activities may include, but are not limited to, revenue sharing schemes or arrangements, partnerships or other ventures. Such arrangements shall not be exempted from any competitive market rules in the ECs.

Article 12 Information GatheringThe Real Estate and Municipal Agency shall have the authority to require information, documents, records, or data from those with knowledge for the purposes of fulfilling its duties under these Regulations. The intentional destruction of requested information or provision of false statements by any person or party shall be a violation of these Regulations.

Article 13 Procedure for Amendmentsa. These Regulations shall be amended pursuant to the procedures set forth in the Executive

Regulation (Regulation No. 1).

b. These Regulations, and any Rules, Policy Statements, Executive Orders, and Manuals, and amendments thereto, shall be promulgated in both Arabic and English translation. Where there is ambiguity between the two versions, the Arabic version shall control as the official version.

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Article 14 PropertyThe Real Estate and Municipal Agency, through the ECA, shall have the ability to acquire, own, hold, develop and dispose of property, both real and personal. The property of the ECA and its Real Estate and Municipal Agency shall be exempt from attachment, execution or process in bankruptcy, whether in the possession of the ECA, a licensee or outsource contractor.

Article 15 Dispute Resolutiona. All disputes regarding land use and real estate including, but not limited to, zoning and

other land use, sales, registration, title, ownership interests, building, construction and other safety codes, occupancy and other permits, landlord-tenant and lessor-lessee shall be resolved per the Economic Cities dispute resolution system.

b. During any interim period, all disputes arising under these Regulations shall be adjudicated by a special board of the ECA. The special board of the ECA shall have the authority to set penalties and awards in disputes. Appeals can be made to the Secretary General directly for reconsideration. The Secretary General’s decision shall be final and binding on the parties.

Article 16 Financesa. The Real Estate and Municipal Agency may levy any charges, dues, fees and tariffs for

services or facilities provided, as described in these Regulations, or any Rules, Executive Orders or Manuals. Such charges, dues, fees and tariffs may include, but are not limited to, license or permit issuance and renewals, inspection charges, registration fees, and occupancy tariffs.

b. Such charges, dues, fees and tariffs shall be published and made available by notice, via the web portal, and upon request to the Real Estate and Municipal Agency.

c. In exceptional cases when deemed in the best interest of the development goals of the ECA, such rates, charges, dues and fees shall be subject to waiver by the Real Estate and Municipal Agency, pursuant to procedures and criteria approved by the Board. All waivers shall be published.

d. The Real Estate and Municipal Agency may license or outsource others to perform any service, and collect any associated charges, dues, fees and tariffs at its discretion.

Article 17 Investigation and Enforcementa. The Real Estate and Municipal Agency shall have the authority to oversee and enforce the

regulation of land use and real estate in the Economic Cities. Such oversight shall include any and all ECA Regulations, Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, procedures, and Manuals implemented by the ECA, the Real Estate and Municipal Agency, or the Master Developer and other licensees or outsource contractors.

b. The Real Estate and Municipal Agency shall have the duty to ensure that land use, real estate, development, and construction and occupancy of buildings comply with all applicable treaties, accords, protocols and international agreements entered into by the Kingdom of Saudi Arabia.


c. The Real Estate and Municipal Agency shall have the power to investigate any alleged violations, including violations of any and all ECA Regulations, Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, procedures, and Manuals implemented by the ECA, the Real Estate and Municipal Agency, or the Master Developer and other licensees or outsource contractors.

d. The Real Estate and Municipal Agency shall have the power to levy fines and penalties for violations of these Regulations.

Article 18 Municipal ActivitiesThe Real Estate and Municipal Agency shall have the authority to set standards for and oversee the provision of all municipal services, as provided by the Master Developers or other developers or outsource contractors. Such municipal services shall include, but are not limited to, waste management, street cleaning, parking, ticketing, civil defense planning, street naming and numbering, and any and all other municipal services.

Article 19 Access and InspectionThe Real Estate and Municipal Agency shall have the right to access any site or building within the Economic Cities - except for private residences - after coordinating with the City Manager or his deputy, and without compromising the proper functioning of the ECs. The Real Estate and Municipal Agency shall have the right to request the necessary documents and information in order to carry out such functions.

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PART 3

21JULY 2012

Article 20 Role of the Master Developera. As described in the Developer Agreements executed between the Master Developers

and SAGIA and/or the ECA, the Master Developer of each Economic City shall have full responsibility for the development, zoning, design, construction, maintenance and upkeep of the Economic Cities as per the Developer Agreement, and any ECA licenses, permits or agreements.

b. The Master Developers shall comply with the Masterplan, as described in the Developer Agreement.

c. The Master Developers shall comply with these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, Manuals, or other Regulations as promulgated by the ECA or its Agencies, subdivisions, or licensees.

d. Where required by the ECA, the Real Estate and Municipal Agency, or these Regulations, the Master Developers shall have the obligation to develop detailed Manuals for the City.

e. Any Manuals promulgated by the Master Developers are subject to the approval and consent of the Real Estate and Municipal Agency.

Article 21 Outsourcing and Contractinga. As described in the Developer Agreements executed between the Master Developers and

SAGIA and/or the ECA, the Master Developer of each Economic City shall have the power to contract, outsource or license any and all of its duties, powers, or responsibilities as permitted by the Developer Agreement.

b. All other developers, sub-developers, contractors, sub-contractors, outsource contractors and licensees shall comply with the Masterplan.

c. All developers, sub-developers, contractors, sub-contractors, outsource contractors and licensees shall comply with these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, Manuals, or other Regulations as promulgated by the ECA or its Agencies, subdivisions, or licensees.

d. Any and all contracts, outsource contracts, or licenses shall not release the Master Developer from responsibility for the development of the Economic Cities, nor any other requirements set forth in the Master Developer Agreement, the Masterplan, or these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, Manuals, or other Regulations as promulgated by the ECA or its Agencies, subdivisions, or licensees.

Part 3 Master Developer and the Masterplan


Article 22 Masterplana. As described in the Developer Agreements, the plans, designs, and studies for the Economic

Cities shall be compiled in one plan to be known as the Masterplan.

b. The Master Developer shall have the responsibility to compile the Masterplan for each Economic City.

c. The Masterplan for each Economic City shall include:

i. All proposed maps, plans and layouts.

ii. Zoning plans.

iii. Design and proposals for municipal services.

iv. All building and construction codes, standards, and requirements.

v. Plans for engaging with communities outside the Economic Cities, methods for mitigating conflicts, and detailed alignment of the Masterplan with the planning of areas surrounding the Economic Cities.

vi. Descriptions of socio-economic characteristics, including: population forecasts, employment forecasts, household structures, and social facilities requirements.

vii. Land-use plans, including: land uses, densities, gross floor areas, floor area ratios (FAR) and plot ratios, and built and un-built areas.

viii. Urban transportation and traffic planning studies and plans, including: transportation modes and systems, transportation travel demand forecasts, traffic modeling strategies, traffic impact and parking studies, and transportation environmental impact assessments on air quality and noise.

ix. Infrastructure plans, including: concept design, concept plan of all essential facilities such as water, sewers, electricity and telecommunications, streets and highways, public utilities, police and fire services, and any other facilities related to the protection of the health, safety and general welfare of the population of the Economic Cities.

x. Community facilities, including: guidelines and standards, concept location plans, and land allocation plans.

xi. Phasing and construction planning, including: phasing plans and construction schedules.

xii. Environmental impact studies, including: physical impact (air, soil and marine pollution), floral and faunal impact, socio-economic impact, and mitigation measures.

xiii. Seismic, hydrological, topographical or any other necessary studies of the land of the Economic Cities.

xiv. Historical and archaeological surveys.

xv. Natural disaster and other emergency plans, including emergency procedures, countermeasures, and evacuation plans and procedures.

xvi. Any other information, plans, or designs as the Real Estate and Municipal Agency shall, from time to time, require.

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Article 23 OversightThe Real Estate and Municipal Agency shall have full authority to oversee the design, development and implementation of the Masterplan. Such authority shall include all aspects of implementation, including zoning, phasing, inspection, and establishment of standards and codes. The decisions of the Real Estate and Municipal Agency as regards the Masterplan shall be final.

Article 24 Approval of the MasterplanThe Real Estate and Municipal Agency shall have the responsibility to approve the Masterplan. The Masterplan of each Economic City shall not be considered operative until approved by the Real Estate and Municipal Agency.

Article 25 Changes to the Masterplana. The Master Developer of each Economic City, or any other interested party, including the

Real Estate and Municipal Agency, may suggest changes to the Masterplan. All suggested changes to the Masterplan of each Economic City shall be submitted in writing to the Real Estate and Municipal Agency for approval, after consultation with the Master Developer. Changes to the plan shall not be considered operative until approved by the Real Estate and Municipal Agency.

b. Any party who affects any changes to plots, zones or other plan layouts that affect the ECA Land Registry or the physical placement of construction, facilities, infrastructure and buildings shall immediately communicate such changes to the Real Estate and Municipal Agency.

Article 26 Incorporation of Codes and Requirementsa. The Real Estate and Municipal Agency shall have the authority to establish, mandate and

require the use of building and construction codes, standards, requirements, planning regulations and design guidelines, including those for infrastructure, within the Economic Cities.

b. To ensure the uniformity, efficiency, and safety of the Economic Cities, all building and construction codes, standards, requirements, planning regulations and design guidelines, including those for infrastructure, shall be incorporated into the Masterplan, and shall be binding on the Master Developer, as well as any other developers, sub-developers, contractors, sub-contractors, outsource contractors and licensees.

c. The Master Developer of each Economic City shall propose a regime of building and construction codes, standards, requirements, planning regulations and design guidelines, including those for infrastructure, by which it will be bound in developing the City, to the Real Estate and Municipal Agency for approval and incorporation into the Masterplan.


Article 27 Zoninga. The Master Developer of each Economic City shall develop a zoning plan for each Economic

City to include in the Masterplan for such city.

b. The zoning plan shall take into account efficiencies of use, property value, public safety, hazards, public enjoyment, aesthetics, welfare and health.

c. The zoning plan shall be approved by the Real Estate and Municipal Agency as part of the Masterplan approval process.

d. Any changes to the zoning plan by the Master Developer shall be approved by the Real Estate and Municipal Agency.

e. The Master Developer shall establish procedures for challenges, exceptions and variances to the zoning plan by owners, developers, users and others, and such procedure shall be approved by the Real Estate and Municipal Agency.

f. Any challenges, exceptions and variances to the zoning plan, if approved by the Master Developer, shall not be valid until approved by the Real Estate and Municipal Agency.

g. Any appeals to unsuccessful challenges, exceptions and variances to the zoning plan can be made to the Real Estate and Municipal Agency.

Article 28 Designation of Lots, Plots, Tracts and ApartmentsThe Master Developer of each Economic City shall submit, in conjunction with the Masterplan of each city, a detailed plan including the metes and bounds and GPS coordinates of each lot, plot, tract, apartment or designated portion of land it intends to sell, lease or develop, to form the initial basis of the Land Registry. Such plans shall be submitted both as survey plans and in GIS form.

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PART 4

27JULY 2012

Article 29 Building CodesThe Real Estate and Municipal Agency shall establish and approve all building codes as part of the Masterplan. Such codes shall include reasonable obligations and restrictions established to protect the health and safety of persons building, constructing, occupying, operating or using such buildings.

Article 30 All Construction to Follow CodesAll building, construction, or development in the Economic Cities shall follow the codes established and promulgated through the Masterplans.

Article 31 Certification of PlansAll plans for construction shall be certified to meet all applicable building codes, and no construction shall commence before such plans have been submitted to the Real Estate and Municipal Agency for inspection and approval.

Article 32 Establishment of Designated or Approved ConsultantsThe Real Estate and Municipal Agency shall designate consultants, certified by the Real Estate and Municipal Agency, who shall review all proposed plans, and certify that such plans meet all applicable building codes as promulgated in the Masterplan.

Article 33 Construction PermitsUpon certification by a designated consultant that all proposed plans meet the applicable building codes, review by the Real Estate and Municipal Agency to ensure that such construction comports with the zoning plan as promulgated in the Masterplan, and the payment by the applicant of all fees, the Real Estate and Municipal Agency shall issue construction permits specifying the nature and details of the proposed construction, the land to be developed, the time period in which such construction is to be completed, and any other requirements that the Real Estate and Municipal Agency may demand.

Part 4 Building Codes, Construction Permits, Occupancy Certificates


Article 34 Condominiums and Other Multi-Ownership Developments

a. The Real Estate and Municipal Agency shall permit the construction and organization of condominium apartments, planned communities and other multi-ownership developments, as designated in the Masterplan.

b. In addition to any other proposed plans, the Master Developer, or any developer or sub-developer, of any condominium apartments, planned communities or other multi-ownership developments, shall register such regimes with the Real Estate and Municipal Agency, and shall make submissions to the Real Estate and Municipal Agency for approval of additional plans, designs and procedures detailing:

i. The number, design, layout and floor plans of all units within the development, as well as other associated elements such as parking and roof space.

ii. The ownership rights, interests, easements, covenants, entitlements and responsibilities affiliated with each unit.

iii. The ownership rights, interests, easements, covenants, entitlements and responsibilities affiliated with any common spaces, properties, shared structures, utilities, or facilities within the development.

iv. Rules and procedures for the collective sale of the structure or development.

v. Plans and structures for the long term management of the development.

vi. Creation of corporate bodies, owners associations, building boards or other management bodies for the development, including the procedures, rules, membership, duties and rights of such bodies.

vii. Financial plans for the short, medium, and long term upkeep, maintenance, and repair of the development, including replacement reserves, emergency funds and other safeguards.

viii. Financial plans for the fee structures of the development, including long term financial projections of fee needs and growth.

ix. All by-laws, rules and procedures for the development.

x. Insurance plans for the development.

xi. Any other plans, procedures or designs that the Real Estate and Municipal Agency may require.

c. Upon approval of the rules and procedures described above, the approved by-laws and other documents shall be recorded in the Land Registry establishing the condominium or other ownership regime, setting forth the governance rights of the unit owners and responsibilities of the developer for completion of construction and issuance of warranties to the unit owners. Procedures for adjudication of claims of unit owners against the developer also shall be established in the documents. The documents also shall include timing and procedures for transferring the governance of the development to a body of unit owners by a date certain or upon the transfer of a minimum number of units to individual ownership.

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d. The approved documents shall allocate liabilities for maintenance and repair between the governing body and the unit owners, and include annual capital and operating budgets. Other development expenses shall be allocated among the developer, unit owners and the governing body of the condominium or development.

e. The governing body of the condominium or development shall have the right to attach and enforce liens against individual units.

f. Procedures for termination of the condominium or other organizational regime shall also be a part of the recorded instruments.

g. The recorded instruments for each condominium apartment, planned community, and other multi-ownership development shall also include matters of subdivision, easements, title, allocation of interests in common elements, and the right of the developer to expand the condominium or development to include other properties.

h. Single-owner, multi-unit developments designated for rental use shall be exempt from these requirements.

Article 35 Changes to Proposed Building PlansAll changes to a proposed building plan must be certified to meet all applicable building codes as promulgated in the Masterplan, and must be approved by the Real Estate and Municipal Agency as soon as such changes have been finalized.

Article 36 Inspections of ConstructionThe Real Estate and Municipal Agency shall have the power to inspect ongoing construction to ensure that the terms of each permit are followed, that the applicable building and worker safety codes are enforced, and that no unapproved changes to the proposed plan are implemented. The Real Estate and Municipal Agency may charge fees for such inspections.

Article 37 Certificates of CompletionUpon completion of construction, the Real Estate and Municipal Agency shall inspect the completed structure, and upon satisfaction that the structure meets the building codes as specified in the permits and plans, and upon payment of all fees, issue a certificate of completion.

Article 38 Certificate of Occupancya. For buildings, developments, dwellings, homes, apartments and other structures

intended for human habitation, the Real Estate and Municipal Agency shall ensure that such structures meet all applicable building codes and requirements as specified in the Masterplan, and upon satisfaction and payment of all fees, issue a certificate of occupancy.

b. Inspection and renewal of certificates of occupancy shall be required each time buildings, developments, dwellings, homes, apartments and other structures intended for human habitation are transferred.

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c. Inspection and renewal of certificates of occupancy shall be required every five (5) years for buildings, developments, dwellings, homes, apartments and other structures intended for human habitation which are leased.

Article 39 Operations PermitsIn the case of any business, commercial, industrial, educational, recreational, or other public or non-residential construction, the Real Estate and Municipal Agency shall inspect the completed structure, and upon satisfaction that the structure meets the requirements set for such facility, issue a permit to operate such facility.

Article 40 CondemnationIn the case that a building, structure or other construction has deteriorated such that it would no longer be eligible for a Certificate of Occupancy or an Operations Permit, or has become a nuisance or danger to the public, the ECA shall have the authority, upon notice and opportunity to appeal and cure, to condemn such building where it is necessary for the safety and welfare of the Economic Cities.

Article 41 Power to OutsourceThe Real Estate and Municipal Agency shall have the power to outsource or delegate its powers and duties to inspect and permit to such outsource contractors or developers as are in the best interests of the Economic Cities.

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PART 5

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Article 42 Establishment of a Land Registry and Departmenta. The Real Estate and Municipal Agency shall establish a registry, to be known as the “ECA

Land Registry,” and a department, to be known as the “Land Registry Department” to administer it. The Land Registry Department shall report on its activities to the Real Estate and Municipal Agency.

b. The Land Registry Department shall have any and all duties, powers and responsibilities as delegated by the ECA in these Regulations, or by the Real Estate and Municipal Agency in any Real Estate and Municipal Agency Rules.

c. The Land Registry Department’s duties and responsibilities may be outsourced to ensure the efficient and speedy provision of services.

Article 43 Purpose The Land Registry shall be the sole registry to record all interests, benefits, burdens, transfers, mortgages, encumbrances and ownership rights of any and all real estate, buildings, apartments, land, and developments within the Economic Cities.

Article 44 Interests Recorded a. The Land Registry Department shall cause to be recorded in the Land Registry all properly

filed interests, benefits, burdens, transfers, mortgages, encumbrances and ownership rights of any and all real estate, buildings, apartments, land, and developments within the Economic Cities. These interests include, but are not limited to:

i. Ownership rights, including tenancy in common, or other shared ownership structures.

ii. Waqfs and Trusts.

iii. Life estates, Tenancy for Years, or Usufruct rights.

iv. Defeasible estates, remainders and reversions.

v. Easements: public, private, affirmative, negative, appurtenant and in gross.

vi. Covenants: affirmative, negative, appurtenant and in gross.

vii. Caveats.

viii. Liens.

ix. Mortgages.

x. Leases whose term is longer than one (1) year in length.

xi. Any other encumbrances, claims, or interests in the property.

Part 5 The Land Registry


Article 45 Interests Not Recorded No interest shall be recorded that is not in compliance with the Masterplan or these Regulations.

Article 46 Form and Functioning of the Registry a. The Land Registry shall contain dossiers for each registered piece of real estate.

b. Properly recorded instruments and any other properly recorded documents pertaining to any specified real estate, shall be maintained in the dossier for that property.

c. Such instruments shall be maintained in perpetuity, to preserve a record of the chain of title to each piece of real estate.

d. The Land Registry Department shall assign each new dossier, instrument or other document a unique identification number for cross-reference, and shall record such number and the nature of the dossier, instrument or document in a central log.

e. Instruments or other documents shall be registered in the order they are submitted to the Land Registry Department.

f. Instruments or other documents pertaining to or affecting more than one piece of real estate shall be filed in the dossier of each property affected.

g. The Land Registry shall be kept in any form (digital or otherwise) that will most efficiently ensure ease of access and preservation of data.

h. If kept in digital form, all data that comprises the Land Registry shall be backed up utilizing the most secure practicable methods.

Article 47 Effect of Registration and Unregistered Interests Any interests, transfers, encumbrances and ownership rights of any and all real estate within the Economic Cities shall not be valid unless registered in the Land Registry, and no interest shall be created, nor ownership transferred until such registration is complete. Such registration shall be conclusive evidence of title and the interests, transfers, encumbrances and ownership rights so registered. Constructive or actual notice of unregistered interests shall not affect the registered interest.

Article 48 Form of Registration a. The Real Estate and Municipal Agency shall register any and all interests, transfers,

encumbrances and ownership rights, or other documents or instruments relating to any and all real estate within the Economic Cities, so long as:

i. The identification of the registering party or parties is verified.

ii. The identification of the transferring party, or other interested parties are identified.

iii. The identification and credentials of any authorized representative of the parties is verified.

iv. The specific real estate is properly identified in the Economic Cities’ GIS system.

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v. The past ownership and interests in the property are verified.

vi. The instrument is validly executed.

vii. The instrument creates an interest allowed under these Regulations, or any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, or Manuals.

viii. The instrument identifies the fair market value of the interest, as determined by methods approved by the Real Estate and Municipal Agency.

ix. Any other requirements as established by the Real Estate and Municipal Agency Rules.

b. No consideration shall be required between the parties for the registration of any interests.

c. The requirements of this section shall be defined and specified in Real Estate and Municipal Agency Rules.

Article 49 Notary Public Upon registration the Real Estate and Municipal Agency will create or submit the details of such registration to the relevant Notary Public.

Article 50 Priority of Registration Any and all interests, transfers, encumbrances and ownership rights, or other documents or instruments relating to any and all real estate within the Economic Cities shall be registered in the order they are received in registerable form, and shall have priority in the order in which they are registered. The date of execution of the instrument shall not affect the registration priority.

Article 51 Correction of Error Upon request of an interested party, the Master Developer, or of its own initiative, the Land Registry Department may correct errors in the Land Registry. The Land Registry Department shall give notice of such correction to all other holders of registered interests in the affected real estate, however the failure to give such notice shall not affect the validity or priority of such correction.

Article 52 Liability for Error The ECA, its Real Estate and Municipal Agency, the Land Registry Department, and any outsource contractors and licensees, shall not be liable for any damages caused by errors, faults or mistakes in the Land Registry.

Article 53 Adverse Possession and Squatting No interest shall be created by any form of adverse possession, squatting, or physical use.


Article 54 Registry Checks Upon request of any party, the Land Registry Department shall provide the registry information, including history of title and current and former interests. The identity of the requesting party shall be recorded by the Land Registry Department.

Article 55 Fees The Land Registry Department will charge fees for services rendered, including, but not limited to, registration, registry checks, and error correction. Such fees shall be detailed in Real Estate and Municipal Agency Rules.

Article 56 Initial Creation of Dossier Upon receipt from the Master Developer of each Economic City of a detailed plan including the metes and bounds and GPS coordinates of each piece of real estate it intends to sell, lease or develop, the Land Registry Department shall create dossiers for each such piece of real estate as identified in the GIS system.

Article 57 Penalties The Real Estate and Municipal Agency shall establish penalties for the provision of false, fraudulent or inaccurate information to the Land Registry.

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PART 6

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Article 58 Ownership and TransferAll real estate within the Economic Cities may be fully owned and freely transferred by persons or corporate entities, pursuant to the rights, obligations and limitations set forth in these Regulations.

Article 59 Ownership by Non-SaudisNon-Saudi natural or corporate persons shall be entitled to own or benefit from real estate within the Economic Cities, in accordance with the rules set forth by the Board and approved by the King.

Article 60 Ownership CertificatesOwnership interests in all real estate within the Economic Cities shall be evidenced by an Ownership Certificate, which shall have the full effect and bear the full rights of title deed.

Article 61 Tenancy in CommonTenancy in Common shall be allowed between persons, corporate entities, or both for any and all real estate or interests therein, within the Economic Cities. Such interests, and their proportionate shares shall be registered in the Land Registry.

Article 62 Life Estates and Tenancy for YearsInterests in any and all real estate within the Economic Cities may be granted for numbers of years, or for the life of the user. Such interests must be specified and registered in the Land Registry.

Article 63 Reversions and RemaindersReversion and remainder interests in any and all real estate within the Economic Cities may be granted to the extent permissible under the applicable heritability laws. Such interests must be specified and registered in the Land Registry.

Article 64 HeritabilityIn the case of death of a registered interest holder, any and all interests shall be heritable. Any such inheritances, transfers and new interests shall be registered in the Land Registry pursuant to any wills, probate or other properly authenticated court or official instruments documenting the transfer and creation of interest.

Part 6 Ownership and Transferability


Article 65 Waqfs and TrustsWaqfs, trusts, and their trustees, shall be able to own and manage property in the Economic Cities.

Article 66 Merger and Divisibilitya. Owners of any and all real estate within the Economic Cities may merge title, so long as

they hold sufficient interest to do so.

b. Owners of any and all real estate within the Economic Cities may divide title, so long as they hold sufficient interest to do so. Such divisions shall be subject to the approval of the Real Estate and Municipal Agency pursuant to any zoning, building standards or codes, or other requirements in the Masterplan.

Article 67 Effect of Registration of TransferThe registration of a transfer of interests in any real estate within the Economic Cities shall fully vest the transferee with the interest and divest the transferor(s) of any interest transferred.

Article 68 Eminent DomainThe Secretary General may, when it is in the best interests of the Economic Cities, claim property that is otherwise privately owned or leased. Any such takings shall be fully, fairly and speedily compensated based on fair market value of the appropriated interests in real estate, as ascertained by an independent, third party valuation. Such procedures shall be established by Real Estate and Municipal Agency Rules.

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PART 7

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Article 69 Easements PermittedEasements, including public, private, affirmative, negative, appurtenant and in gross, shall be permitted in the Economic Cities. No easements shall be allowed to arise by prescription or implication, except as specified within these Regulations, or any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, or Manuals.

Article 70 Requirement of Registration of EasementsNo easement shall be valid unless duly registered in the Land Registry, identifying the easement granted, the parties or property benefitted, the parties or property burdened, and the consent of all interested parties. Such easements shall be recorded in the dossiers of both benefitted and burdened properties. The Land Registry Department may refuse to register easements that create unreasonable burdens or are otherwise contrary to the best interests of the Economic Cities, as defined in the Real Estate and Municipal Agency Rules.

Article 71 Rights of SupportNo party shall engage in any excavation, development or other construction that affects the stability of adjoining land, real estate, structures, or buildings or other improvements.

Article 72 Implied Easements in Developed Areasa. In all developed areas of the Economic Cities, where two or more lots form part of the

same sub-development, easements for services shall be implied to benefit each lot. Such implied easements shall include easements for the passage of water, electricity, drainage, gas, sewerage, or other infrastructure, and any requisite transit vehicles, structures or installations.

b. The benefiting owner shall, upon reasonable notice and at reasonable time, have the right to enter the burdened property to make necessary repairs to the installations, and shall repair any damage caused to the burdened property.

c. Such implied easements shall not be destroyed absent the combination of lots, plots or tracts into a single property with a single dossier in the Land Registry.

d. Easements implied herein need not be registered to be enforceable.

Part 7 Easements and Covenants


Article 73 Implied Easements in Subdivision Plansa. Pursuant to the Masterplan of each Economic City, where subdivisions of land into

plots, lots and tracts are sold as individual parcels, all rights of way, drainage and party walls, including for the passage of water, electricity, drainage, gas, sewerage, or other infrastructure shall be considered implied easements. Such implied easements shall include easements for any requisite transit vehicles, structures or installations, and any other easements defined in the plans for such subdivision.

b. All benefitting property owners must make reasonably and proportionate contributions to the upkeep of all such easements from which their property benefits.

c. Such implied easements shall not be destroyed upon unification of lots, plots or tracts.

d. Easements implied herein need not be registered to be enforceable.

Article 74 Variation or Release of Easementa. All easements may be released or varied by the parties in interest by registering such

release or variance with the Land Registry.

b. The acquisition of both burdened and benefitted property shall not be deemed to extinguish any easements absent the combination of the two properties into a single property with a single dossier in the Land Registry.

Article 75 Cancellation of Easementa. An easement may be cancelled, upon application to the Land Registry Department, when:

i. Any set time period for the easement has expired.

ii. Any triggering event for the expiration of the easement has occurred.

Article 76 Power to Order Easementa. The Real Estate and Municipal Agency shall have the power to grant or vary easements

where:

i. The use of the real estate benefitting from the easement is not against the public interest.

ii. Any and all interest holders in the burdened property can be fully compensated.

iii. All reasonable efforts have been made to obtain the easement unsuccessfully.

b. Any easement so created shall be specified in detail and registered in the Land Registry.

c. The applicant shall pay the full costs and compensation for the creation of the easement.

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Article 77 Public Easementsa. The Real Estate and Municipal Agency shall, when it is in the best interests of the Economic

Cities, have the authority to create public easements when:

i. The use of the public benefitting from the easement is of great public interest.

ii. Any and all interest holders in the burdened property can be fully compensated.

iii. All reasonable efforts have been made to obtain the easement unsuccessfully.

b. Any easement so created shall be specified in detail and registered in the Land Registry.

Article 78 Covenants PermittedCovenants, including affirmative, negative, appurtenant and in gross, shall be permitted in the Economic Cities.

Article 79 Requirement of Registration of CovenantsNo covenant shall be valid unless duly registered in the Land Registry, identifying the covenant granted, the parties or property benefitted, and the parties or property burdened. Such covenants shall be recorded in the dossiers of both benefitted and burdened properties. The Land Registry Department may refuse to register covenants that create unreasonable burdens or are otherwise contrary to the best interests of the Economic Cities, as defined in the Real Estate and Municipal Agency Rules.

Article 80 Variation or Release of Covenanta. All covenants may be released or varied by the parties in interest by registering such

release or variance with the Land Registry. Such release or variance requires the consent of all parties to the covenant.

b. The acquisition of both burdened and benefitted property shall not be deemed to extinguish any covenants absent the combination of the two properties into a single property with a single dossier in the Land Registry.

Article 81 Cancellation of Covenanta. A covenant may be cancelled, upon application to the Land Registry Department, when:

i. Any set time period for the covenant has expired.

ii. Any triggering event for the expiration of the covenant has occurred.

PART 8

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Article 82 Caveats and Liens PermittedThe Land Registry Department shall register any caveats or liens filed by a party claiming an interest in the real estate or a party who has an injunction restraining interest holders from acting with regard to the property, pursuant to the Rules set forth by the Real Estate and Municipal Agency.

Article 83 Requirements for Registering Caveats and Liensa. No caveat or lien shall be valid unless duly registered in the Land Registry, identifying

the party filing the caveat or lien, the interest claimed by the filing party, the grounds on which the interest is claimed, the parties, property or sub-part of the property to which the caveat or lien applies, any interests to which the caveat or lien would apply, the extent of any prohibition on dealings, the address and locale of the filing party, and the names of all parties to whom the caveat or lien may apply. Such caveats or liens shall be recorded in the Land Registry dossiers of the affected properties.

b. The Land Registry Department shall notify all interested parties of the registration of a caveat or lien.

Article 84 Effect of Caveat or Liena. A caveat or lien shall prevent the registration of any instrument affecting the property or

interests designated by the lien or caveat to the extent of any restrictions stated in the lien or caveat, and until such caveat or lien is withdrawn, removed or cancelled, or the caveat or lien is modified to eliminate the respective restriction.

b. Notwithstanding a caveat or lien, the Land Registry Department may register:

i. Any instrument that the caveat or lien, by its terms, does not restrict.

ii. Any instrument filed with the consent of the party that registered the caveat or lien.

iii. Any instrument affecting an interest or interests not affected by the caveat or lien.

Article 85 Withdrawal of Caveat or LienA caveat or lien may be withdrawn at any time by the filing party or its legal representative.

Article 86 Lapsing of Caveat or Liena. Any party affected by a caveat or lien may file notice to the party who filed the caveat or lien

to commence proceedings to establish the interest claimed.

Part 8 Caveats and Liens


b. The affected party shall serve notice on the Land Registry Department within ten (10) days following its filing of notice to commence proceedings specifying the notice and form served on the filing party.

c. If the party that filed the lien or caveat fails to commence legal proceedings within thirty (30) days of notice, the caveat or lien shall be removed from the Land Registry.

Article 87 Cancellation of Caveat or Liena. A caveat or lien shall be cancelled upon request of the party holding the beneficial interest in

such caveat or lien where:

i. The interest claimed in the caveat or lien has ceased.

ii. The claim to the caveat or lien has been abandoned, settled or withdrawn.

b. A caveat or lien shall be cancelled when an instrument cancelling the interest claimed by the caveat or lien is registered.

Article 88 Further Caveat or LienUpon withdrawal, lapse, removal or cancellation of a caveat or lien on an interest in real estate, no further caveat or lien based on the same or substantially the same grounds may be registered absent an order from the Real Estate and Municipal Agency, or a duly authorized judicial or arbitral body.

Article 89 Improper Caveat or LienAny party who files a caveat or lien without reasonable cause shall be liable for any damage caused, including legal fees, and shall be subject to penalty, fine or other punishment as determined by the Real Estate and Municipal Agency.

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PART 9

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Article 90 Leasing PermittedAny owner may lease any real estate, buildings, apartments, land, and developments within the Economic Cities without restriction, except as specified within these Regulations, or any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, or Manuals.

Article 91 Requirement of Lease No such lease or rental shall benefit from legal protection under these Regulations, unless it is governed by a written, signed lease or rental contract, which will identify the landlord, the tenant, the specifics of the property to be leased or rented, the rent to be paid, when payments must be made, the length of the lease, and any other terms to which the parties shall agree.

Article 92 Registration of Leased Interests Any lease whose term is longer than one (1) year shall be registered in the Land Registry.

Article 93 Tenancy Periodsa. If no specific tenancy period is identified, the tenancy shall be deemed to be the period

specified for rent payment.

b. If a tenant continues to occupy property and pay rent past the expiration of the lease without objection from the landlord, except as otherwise provided therein, the rental contract shall be deemed to be renewed upon the same terms and conditions, however the period of such lease shall be from month-to-month, until either party ends the arrangement or a new lease is signed.

Article 94 Terminationa. If a lease or rental contract is valid, and the parties are in substantial performance, the lease

or rental contract cannot be terminated unilaterally. Such termination requires the assent of all parties to the lease or rental contract.

b. The lessor is not required to renew any lease or rental contract, but if the lessor intends not to renew, the lessor shall provide sixty (60) days’ notice prior to the expiry of the contractual term to the lessee that such lease or rental contract shall not be renewed.

c. The lessee is not required to renew any lease or rental contract, but if the lessee intends not to renew the lease or rental contract, the lessee shall provide thirty (30) days’ notice prior to the expiry of the contractual term to the lessor that such lease or rental contract shall not be renewed.

Part 9 Leasing


Article 95 Sub-Leasinga. Sub-leasing shall be allowed to the extent permitted within the primary lease or rental

contract.

b. The primary tenant shall remain responsible for upholding the terms of the primary lease.

c. Any sub-lease shall terminate along with the primary lease at the end of the specified lease term.

Article 96 Requirements of Lessora. The lessor must provide the rented property in good enough condition to fulfill the purposes

of the lease.

b. The lessor retains full responsibility for maintenance, repair, and the correction of faults and defects that affect the use of the property, unless the parties agree otherwise.

c. The lessor shall be liable for any harms caused by any changes made to the property by the lessor during the period of tenancy.

Article 97 Requirements of Lesseea. The lessee is obligated to pay rent in a timely fashion.

b. The lessee is obligated to maintain and preserve the property in good condition.

c. The lessee may not undertake any changes, renovations or maintenance without the lessor’s permission, or unless otherwise agreed in the lease or rental contract.

d. The lessee may be obligated by the lease or rental contract to provide a security or maintenance deposit to ensure the maintenance of the property. Such deposit shall be refunded at the termination of the tenancy, to the extent not used to offset any loss of the lessor.

e. The lessee shall return the property in the same condition as it was received except for normal use, wear or damage beyond the control of the lessee.

f. The lessee shall not remove any fixed improvements without the consent of the lessor.

Article 98 Evictiona. The lessor may demand eviction of the lessee before the end of the lease or rental contract

where:

i. The lessor has given notice of failure to pay rent, and the lessee has failed to remit the rent in full within thirty (30) days of such notice.

ii. The lessee sub-leases the property without the written consent of the lessor. In such case eviction will be against both the lessee and the sub-lessee.

iii. The property is being used in violation of these Regulations, and any Real Estate and Municipal Agency Rules, Policy Statements, Executive Orders, Manuals, or other Regulations as promulgated by the ECA or its Agencies, subdivisions, or licensees.

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iv. The lessee seriously, dangerously or irreparably damages the property intentionally or as the result of gross negligence.

v. The lessee’s use of the property violates the terms or purpose of the lease or rental contract, or otherwise violates zoning or other requirements.

vi. The property is condemned pursuant to these Regulations.

vii. The lessee utilizes the property such as to cause a nuisance or harm to the surrounding apartments, properties and lands.

viii. The lessee has violated the terms of the lease or rental contract and failed to cure such violation within thirty (30) days of notice received from the lessor.

Article 99 Death In the case of death of the lessor or lessee, the lease or rental contract shall continue to be valid, subject to the lessee’s heirs right to terminate within thirty (30) days of the lessee with immediate effect.

Article 100 Transfer The transfer of the property by the lessor shall not affect the validity of the lease or rental contract.

Article 101 Dispute Resolution a. All disputes between lessors, lessees, landlords and tenants shall be resolved per the

Economic Cities’ dispute resolution system.

b. During any interim period, all disputes arising under these regulations shall be adjudicated by a special board of the ECA. The special board of the ECA shall have the authority to set penalties and awards in disputes. Appeals can be made to the Secretary General directly for reconsideration. The Secretary General’s decision shall be final and binding on the parties.

REGULATION NO.3 Real Estate and Municipal Regulations

Documents