A lease agreement is a formal contract between a property owner and a tenant, granting the tenant the right to occupy a residential property for a specified period. This document is mutually agreed upon and typically includes the registration of the lease agreement.
Registering a lease agreement provides additional benefits, alongside serving as legal evidence in case of disputes. The agreement may be verbal, written, or implied by the actions of the parties involved.
However, a written agreement clearly outlines the terms and conditions agreed upon by both parties and serves as crucial evidence in case of any disagreements. After the terms have been agreed upon and documented, they cannot be changed unless both parties consent.
Given the increasing frequency of disputes between landlords and tenants, it is vital to safeguard your interests by preparing a comprehensive lease agreement and officially registering it at the nearest registration office.
Registering the lease agreement provides legal protection for both landlords and tenants, ensuring clarity and accountability in case of future conflicts.
Reasons for Creating a Lease Agreement
Having a legally registered lease agreement is essential for maintaining a balanced relationship between landlords and tenants. Not only does it strengthen the relationship between both parties, but it also provides legal safeguards for their respective rights.
Additionally, it serves as an official document that verifies property ownership and offers transparency to other parties involved.
Relying on verbal agreements exposes property owners to legal risks, as they lack legal validity and may lead to misunderstandings or future disputes.
Therefore, landlords should always prioritize executing a written agreement to protect their interests, especially when dealing with high-value assets such as residential properties.
Key Clauses to Review Before Registering a Lease Agreement
To avoid potential disputes during or after the lease term, it is crucial to review the clauses included in the lease agreement before registering it. Key provisions include:
- Security Deposit and Insurance: The agreement should specify the amount of the security deposit at the beginning of the lease, as well as outline the procedure for refunding it at the end of the lease term.
- Responsibility for Maintenance and Repair Costs: The agreement must clearly define which party is responsible for covering maintenance and repair expenses related to the leased property.
Ejar and Absher Platforms:
With the Kingdom of Saudi Arabia continually advancing, platforms such as Ejar and Absherhave been introduced to simplify the process of registering and authenticating lease agreements electronically, making it quicker and more convenient.
Tenant Obligations Under the Lease Agreement
A lease agreement imposes several obligations on the tenant, including:
- Paying rent on the specified dates.
- Using the property for its intended purpose.
- Allowing the landlord to carry out necessary modifications.
- Returning the property in its original condition at the end of the lease.
- Paying utility bills or periodic payments to the landlord.
- Not making any changes to the property without prior approval from the landlord.
Benefits of Registering the Contract on the Ejar Platform
Benefits for Tenants
- Simplifies the process of receiving and handing over the property.
- Safeguards all financial rights.
- Provides electronic services such as online payments and violation reporting.
- The registered contract serves as legal proof of residence.
Benefits for Landlords
- Protects rights through standardized contracts.
- Facilitates dealings with certified real estate brokers.
- Ensures rent collection through various payment methods.
- Stores all contracts electronically.
Benefits for Real Estate Brokers
- Access to certified training courses from Ejar.
- Greater investment opportunities in the real estate sector.
- Simplifies the process of registering and storing contracts electronically.
Ejar Electronic Network
The Ejar Network, launched by the Ministry of Housing, aims to enhance the efficiency of the rental sector and simplify the leasing process for all parties. Its objectives include:
- Digitally documenting lease agreements to make them legally binding.
- Promoting digital transformation in the rental sector.
- Reducing disputes related to property rentals and encouraging investment in the sector.
- Protecting the rights of all parties involved through standardized lease contracts.
Requirements to Register as a Certified Real Estate Broker on the Ejar Network
- Must be a Saudi citizen.
- Must possess a valid commercial registration for property management and leasing.
Read Also:
Documents Required to Register and Authenticate a Lease Agreement
- Valid identification documents for both the landlord and the tenant.
- A registered phone number on the Absher platform.
- Property ownership documents provided by the landlord.
Lease Authentication Fees
According to the Ejar Network regulations, the tenant does not bear any costs for authenticating the lease agreement, while the landlord is responsible for covering these costs, which amount to 125 Saudi Riyals per lease cycle.
Additionally, the landlord must pay any additional fees imposed by relevant authorities before starting the authentication process through the Absher platform.
How to Register a Lease Agreement on the Ejar Electronic Platform
After ensuring that all the required documents are available, the tenant must register the lease agreement through a real estate broker’s account on the Ejar platform.
The landlord should contact an accredited real estate broker via the Ejar platform and sign a brokerage agreement with them. The tenant can find accredited brokers on the Ejar electronic platform or through the Ejar app, available on Google Play and Apple Store under the name “Real Estate Brokers.”
Steps to Register the Lease Agreement
The real estate broker should follow these steps to correctly register the lease agreement:
- Property details.
- Information about the tenant and the landlord.
- Annual rent value and utility service fees such as water, gas, and electricity.
- Lease details, including the payment method and schedule.
How to Authenticate a Lease Agreement on the Absher Platform
Once the lease agreement is registered on the Ejar platform by the real estate broker, both the tenant and the landlord can access the Absher platform to authenticate the contract by following these steps:
- Open the Absher platform and select “Absher Individuals” from the homepage.
- Log in using your username and password.
- Go to “Electronic Services” in the main menu, then choose “Ministry of Housing.”
- Select “Authenticate Lease Agreement” and click “Continue.”
- Carefully review the contract details, then click “Accept.”
- Agree to the terms and conditions, then click “Confirm.”
After completing these steps, a message confirming the contract authentication on Absher will appear.
How to Register and Authenticate Lease Contracts Quickly
If the tenant or landlord does not have an Absher account for contract authentication, the Ejar Network provides real estate brokers with a quick registration service through simple steps:
- Log in to the Ejar system using the username and password.
- Select “Quick Lease Contract Registration” from the “Lease Contract” menu, then specify the contract type.
- Enter the information about the landlord and tenant.
- Enter the details of the residential unit.
- Enter the contract details.
- Submit the contract for authentication.
After these steps, the contract can be authenticated by uploading a manually signed copy from the landlord and tenant.
Steps to Download and Print an Electronic Lease Agreement After Authentication
Sometimes, the landlord or tenant may need to print the lease agreement after authentication and keep it as a legal document. To do so, follow these steps:
- Open the Ejar Network page and log in using the username and password.
- Click on “Lease Agreement” from the dashboard, then select “Lease Contracts List.”
- All active and terminated contracts will be displayed. Choose the contract you want to print and click “View.”
- Download the contract from the top of the screen, then print it.
How to Inquire About Lease Agreements Using an ID Number
If the tenant or landlord wants to check the status of a lease agreement in the Ejar system, they can do so by following these steps:
- Choose “Electronic Services” from the menu at the top of the page, then click on “Ejar Network.”
- Click on the “Inquire about Contractual Status” option at the top of the page.
- Log in by entering your username and password.
- Enter the type and ID number, followed by the date of birth and verification code, then click “Search.”
- All contractual statuses will be displayed. If no lease agreements are found, the following message will appear: “The entered information is not registered in the Ejar system.”
How to Cancel a Lease Agreement Electronically
Both the landlord and tenant can agree to cancel a lease agreement through the Ejar electronic platform. Additionally, the landlord can cancel the lease agreement if a court order is issued to evict the tenant. In this case, the landlord, or their representative, must:
- Log in to the Ejar system.
- Select “Cancel Contract Unilaterally.”
- Attach the required documents.
After completing these steps, the Ejar Network will verify the request and the attached documents before canceling the contract.
Conclusion
If you’re looking for expert advice to help you find the perfect property to meet all your needs, you can rely on the specialists at Faisal Bin Saedan Company, where we are recognized pioneers in the real estate sector.