Seller's Legal Responsibilities When Selling Property in Saudi Arabia 2026: Complete Guide - Defects, Bills, Violations, and Verification Methods

Introduction: Why Knowledge of Responsibilities is Essential?

In the real estate world, it's not enough to put up a "For Sale" sign and wait for buyers. Property sale is a complex legal process governed by strict regulations protecting both parties. Unfortunately, many sellers face serious legal problems due to ignorance of their legal responsibilities, and many buyers discover - too late - hidden defects, accumulated bills, or building violations they were unaware of.

This comprehensive guide protects both parties: seller and buyer. We'll explain in detail the seller's legal responsibilities, common problem types (hidden defects, accumulated bills, building violations), how buyers verify property safety before purchase, and what to do if problems are discovered after signing. We'll also discuss verifying building permits for those wanting to add floors or future expansions.

Whether you're a seller wanting to sell your property safely without future legal problems, or a buyer wanting protection from loss, this article is your complete updated guide for 2026.

First: Seller's Legal Responsibilities in Saudi Arabia

When offering your property for sale in the Kingdom, you're not just offering a commodity. You're legally bound by a set of responsibilities and duties protected by the Saudi Civil Transactions Law and General Real Estate Authority regulations.

Full Disclosure Obligation

The seller's most important responsibility is complete and transparent disclosure of everything related to the property, including:

Basic property information: Actual area, boundaries, licensed use type (residential/commercial/agricultural), building age, construction materials used.

Structural condition: Any wall cracks, ceiling problems, moisture, foundation issues, water leaks, or structural defects.

Services and facilities: Electrical wiring condition, plumbing, air conditioning, drainage systems, water and electricity availability.

Financial obligations: Any accumulated bills (electricity, water, maintenance, municipal fees), owners' association dues (if any), debts or mortgages on the property.

Legal status: Original building permit, building completion certificate, any municipal violations, unlicensed modifications, any legal or judicial disputes on the property.

Restrictions and easements: Neighbor easement rights, right of way, any deed restrictions preventing certain uses, registered mortgages.

Seller's Obligations Under Saudi Law

According to Saudi Civil Transactions Law, the seller is obligated to:

Deliver property as agreed: Property must match the description in contract. Any difference gives buyer right to claim compensation or contract termination.

Guarantee property free from hidden defects: Seller responsible for hidden defects existing at sale time, even if personally unaware.

Guarantee ownership safety: Property must be free from legal disputes or third-party claims. If dispute appears later, seller is responsible.

Complete ownership transfer procedures: Assist buyer in property clearance procedures and new deed registration.

Pay taxes and fees: Seller responsible for paying real estate disposal tax (5% of property value), unless parties agree otherwise.

Second: Hidden Defects - Most Common Problem

Hidden defects are the number one cause of real estate disputes in the Kingdom. Let's understand what they are and how law protects buyers.

What is a Hidden Defect?

A hidden defect is a flaw or deficiency in property that wasn't apparent to buyer during normal inspection, affecting property value or suitability for intended use. For a defect to be considered legally "hidden," three conditions must be met:

Not apparent at contract time: Buyer couldn't discover it through normal inspection. For example, leaks inside walls, foundation problems, sewage system defects.

Affects value or use: Defect must have real impact. Small tile crack isn't hidden defect, but serious structural cracks are.

Existed before sale: Must prove defect existed before property delivery, not result of buyer's use.

Examples of Hidden Defects

Real examples from cases in Saudi courts:

Structural problems: Column or foundation cracks, building tilt, weak reinforced concrete, partial collapses not apparent.

Internal water leaks: Leaks inside walls or under tiles, foundation moisture, waterproofing problems.

Sewage problems: Chronic drainage blockages, damaged underground sewage lines, bad odors from hidden sources.

Insects and pests: Termite or rodent infestation not apparent, insect nest inside walls.

Dangerous electrical wiring: Old corroded wires, unsafe connections inside walls, damaged electrical boxes.

Hidden building violations: Part of property built without permit, non-compliant building materials, neighbor encroachments.

Seller's Responsibility for Hidden Defects

Important point: Seller responsible for hidden defects even if unaware. Yes, you read correctly. Saudi law assumes seller should know their property well, and if hidden defect appears, buyer has right to:

Price reduction: Request price reduction proportional to defect size. For example, if repair cost is 50,000 SAR, buyer entitled to this amount.

Contract termination: If defect is serious and prevents property use, buyer entitled to cancel sale and recover full amount.

Compensation: If buyer proves seller knew defect and deliberately hid it (bad faith), entitled to additional damages compensation.

Difference Between Hidden Defect With and Without Bad Faith

If seller unaware of defect: Buyer gets only price reduction or contract termination (basic guarantee).

If seller knew defect and deliberately hid it: Buyer gets price reduction or contract termination + damages compensation + bad faith compensation. Penalties here can be very large.

How Does Seller Protect Himself?

To avoid liability for hidden defects, seller should:

Inspect property thoroughly: Before offering for sale, request comprehensive engineering inspection from certified office.

Disclose all defects: Mention in sales contract all known defects, however small. Disclosure protects you.

Document everything: Keep copy of engineering inspection report, property photos, any repairs done.

Include clause in contract: "Property delivered in current condition, buyer acknowledges inspection and satisfaction" - but this doesn't exempt you from deliberately hidden defects.

Third: Accumulated Bills - Who Pays?

Very common problem: property offered for sale with accumulated electricity, water, or maintenance bills. Who's responsible for payment?

Electricity and Water Bills - Legal Status

According to current practices in Kingdom:

Before sale: Seller responsible for all bills due until official ownership transfer date (property clearance).

After sale: Buyer responsible for bills from ownership transfer date.

Problem: Previously, electricity and water bills were in "property owner's" name, so if sold with accumulated bills, bills remained registered in old owner's name even after ownership transfer. This caused major problems.

Current solution (2026): Saudi Electricity Company and National Water Company started implementing new system: bills issued in "service beneficiary's" name not "property owner." This means:

When beneficiary moves from one property to another, their debts move with them.

New owner doesn't bear previous owner's bills.

But service must be officially transferred after sale.

What Should Buyer Do Before Purchase?

Request clearance certificate from electricity and water: Before signing sales contract, request seller bring clearance certificate from Saudi Electricity Company and Water Company proving no debts exist.

Verify meter number: Record electricity and water meter numbers, inquire via company app or website about debts.

Stipulate in contract: Include clear clause in sales contract: "Seller commits to pay all electricity and water bills until clearance date, and provide clearance certificate before receiving final amount."

Don't pay full amount: Reserve part of amount (e.g. 5-10%) until seller provides clearance certificate and service transfer completed officially.

Maintenance Bills and Owners' Association Fees

In residential complexes or towers, there are monthly or annual maintenance fees paid to owners' association. These are also seller's responsibility until ownership transfer date.

Check debts: Request account statement from owners' association showing whether there are overdue fees.

Non-payment risks: Some owners' associations prevent ownership transfer or clearance registration until all dues paid.

Fourth: Building Violations and Permits - The Time Bomb

One of the most dangerous problems buyers may face: property offered for sale with building violations not disclosed by seller.

Common Building Violation Types

Building without permit: Complete building or additions (annex, room, upper floor) built without obtaining building permit from municipality. Fine: 10,000 to 50,000 SAR for residential buildings, 20,000 to 100,000 SAR for commercial and industrial buildings.

Front or back setback violation: Building inside legally required setback space (distance between land boundary and building start). Fine: Starts from 5,000 SAR per square meter, may reach 20,000 SAR.

Exceeding allowed height: Building additional floors exceeding height specified in building permit. Fine: According to area, may reach removal of violating floor.

Changing property use: Converting residential property to commercial (or vice versa) without permit. Fine: 5,000 to 50,000 SAR depending on violation type.

Building in annex without permit: Building room or storage in yard or annex without permit. Fine: 5,000 SAR.

Saudi Building Code violations: Non-compliance with safety standards, using non-compliant building materials, lack of fire extinguishing systems. Fine: Varies by violation type, may reach construction stoppage or removal.

Seller's Responsibility for Building Violations

Seller obligated to disclose any building violations on property. If hidden and discovered later, buyer has right to:

Demand contract termination: If violation is serious (e.g., complete building without permit subject to removal).

Price reduction: By value of due fines and violation correction cost.

Compensation: If buyer proves seller's bad faith, entitled to additional compensation.

Force seller to correct violation: Before completing property clearance.

How Does Buyer Verify Violations?

This is the most important question. How do you know if property has violations before purchase?

Balady Electronic Platform: This official platform of Ministry of Municipalities and Housing. Through it you can:

Inquire about violations: Enter balady.gov.sa, login with National Access account, choose "Inquire about violations," enter deed number or municipality number or coordinates, all violations registered on property will appear (if any).

Inquire about building permit: Can verify existence of valid building permit, issue date, licensed building type, allowed number of floors.

Visit local municipality: If information not available electronically, go personally to municipality and request violation disclosure and copy of building permit.

Field engineering inspection: Use certified engineering office to inspect property and match it with original building permit. Engineer will discover any unlicensed additions or modifications.

Compare plans: Request from seller copy of building permit and approved plans, compare with actual property status. Any difference may mean violation exists.

What If You Discover Violation After Purchase?

Unfortunately, this happens often. You bought property then surprised by municipality notice of violation. What do you do?

Check correction possibility: Some violations can be corrected by paying fine and obtaining retroactive permit. Enter Balady platform and submit correction request.

File lawsuit against seller: If seller didn't disclose violation, you have right to file judicial lawsuit to claim compensation or contract termination.

Collect evidence: Keep sales contract, violation notice, any correspondence with seller, engineering inspection report.

Use specialized lawyer: Real estate violation cases are complex, better to use specialized real estate lawyer.

Fifth: Verifying Expansion Possibility and Adding Floors

Many buyers purchase property intending to expand later - add upper floor, horizontal expansion, add annex. But they're surprised that building permit doesn't allow it!

How to Verify Expansion Possibility?

Request original building permit: Request from seller certified copy of building permit. You'll find:

Allowed number of floors: If permit allows 3 floors and current building is two floors, you can add third floor. If current building is 3 floors and permit for 3 floors only, cannot add.

Allowed building percentage: Each land has specified building percentage (e.g., 60% of land area). If percentage fully utilized, cannot expand horizontally.

Maximum allowed height: In meters. Some areas specify maximum height (e.g., 15 meters).

Inquire from municipality: Even if seller gives you building permit, verify with municipality. Sometimes municipal regulations change and expansion becomes prohibited in area.

Check Saudi Building Code: Even if permit allows, must comply with Saudi Building Code regarding distances, safety, fire resistance, structures.

Structural engineering inspection: Before expansion, request inspection from structural engineer to know: Can current foundations bear additional floor? Are columns sufficient? Is reinforcement needed?

Common Mistake: Buying Based on Seller's Promises

Many buyers rely on seller's words: "Property can easily have two floors added." But after purchase they discover statement is incorrect. Don't rely on words, but verify yourself:

Original building permit and its certified copy from municipality.

Engineering report confirming expansion possibility.

Current municipal regulations for area.

Stipulate in sales contract: If your intention is to buy for expansion, write in sales contract: "Seller acknowledges property allows adding upper floor according to building permit number [ ] and based on attached engineering report." This protects you legally.

Sixth: How Does Buyer Protect Himself? Practical Steps

Now that you know the problems, how do you protect yourself as buyer? Here's comprehensive practical plan:

Before Signing Anything

Step 1: Verify Ownership Deed

Enter Najiz platform (najiz.sa) or Real Estate Exchange (srem.moj.gov.sa).

Inquire about deed by its number or seller's ID number.

Verify: Deed validity, current owner's name, no mortgages or restrictions, property boundaries and area.

Step 2: Verify Violations via Balady

Enter balady.gov.sa.

Inquire about violations by deed number.

Inquire about building permit.

Print results and keep them.

Step 3: Comprehensive Engineering Inspection

Use certified engineering office (don't rely on engineer recommended by seller).

Inspection should include: Structural condition (cracks, tilt, moisture), electrical and plumbing installations, air conditioning and drainage systems, actual building match with building permit, any unlicensed additions or modifications.

Get written and stamped report from engineer.

Step 4: Service Clearance Certificate

Request from seller clearance certificate from electricity (Saudi Electricity Company).

Clearance certificate from water (National Water Company).

Account statement from owners' association (if any).

Step 5: Legal Contract Review

Don't sign sales contract prepared directly by seller.

Use real estate lawyer to review contract.

Ensure clauses protecting you exist: Full disclosure of defects, clearance from bills, no violations, seller's commitment to transfer ownership free from any disputes.

During Signing and Payment

Don't pay full amount upfront: Reserve part (10-20%) until successful property clearance completion and verification of all services transfer.

Payment via escrow account (if possible): Some real estate brokerage companies provide escrow account service: amount deposited with them and not delivered to seller until clearance completed.

Document everything: Sales contract, payment receipts, engineering inspection report, clearance certificates, correspondence with seller.

After Purchase

Transfer services immediately: Right after clearance, transfer electricity and water services to your name via official applications.

Update property data: Update your data in Najiz platform and Real Estate Exchange.

Keep all documents: You'll need them if any problems appear later.

Seventh: What Does Buyer Do When Discovering Problem?

You discovered - after purchase - hidden defect, violation, or accumulated bills not disclosed by seller. What do you do?

First Step: Immediate Documentation

Photograph problem with detailed photos and video.

Get engineering report documenting defect or violation.

Get repair cost estimate from certified contractor.

Keep any documents proving seller's non-disclosure (sales contract, property advertisement, correspondence).

Second Step: Amicable Communication with Seller

Before resorting to court, try solving problem amicably:

Send seller official notice (via lawyer or in writing) explaining problem.

Attach evidence (photos, reports, estimates).

Request him to: Pay repair cost, or reduce part of price, or correct violation at his expense.

Set reasonable deadline (e.g., 30 days).

Third Step: File Judicial Lawsuit

If seller refuses or doesn't respond, file lawsuit via Najiz platform:

Choose "File lawsuit" then "Real estate lawsuit."

Fill data and specify claim: Price reduction, or contract termination and amount recovery, or damages compensation.

Attach all documents and evidence.

Submit lawsuit electronically.

Court will consider lawsuit and hear both parties. If seller's hiding of defect or violation proven, will rule in your favor.

Fourth Step: Judgment Execution

After judgment issued, if seller doesn't execute voluntarily, submit execution request via Najiz platform. Execution court will force seller to execute (pay amount, transfer ownership, etc.).

Eighth: Golden Tips for Seller to Avoid Problems

If you're seller wanting to sell your property safely without legal problems, follow these tips:

1. Inspect Your Property Before Offering for Sale

Use certified engineering office to inspect property completely. Request detailed report on structural condition, installations, any defects or problems.

2. Disclose Everything

Mention in property advertisement and sales contract all known defects, due bills, any violations. Full disclosure protects you legally and builds trust with buyer.

3. Pay All Bills

Before offering property, pay all electricity, water, maintenance, municipal fees bills. Get clearance certificates.

4. Correct Violations

If there are building violations, correct them before sale. If can't, disclose them clearly to buyer and reduce price proportionally to correction cost.

5. Use Clear and Detailed Sales Contract

Don't rely on simple standard contracts. Use lawyer to draft detailed sales contract explaining: Property condition in detail, known defects, bills paid, violations (if any), parties' obligations, buyer's acknowledgment of property inspection and satisfaction.

6. Keep All Documents

Keep copies of: Original building permit, building completion certificates, clearance certificates, engineering inspection report, previous repair invoices, signed sales contract.

Frequently Asked Questions

Does buyer have right to terminate contract if defect discovered after purchase?

Yes, buyer has right to terminate contract and recover amount if defect is serious and prevents property use, defect was hidden (not apparent at purchase time) and existed before sale. Lawsuit must be filed within reasonable period from defect discovery.

What if seller sold property with accumulated electricity bills?

Seller responsible for all bills until ownership transfer date. If didn't pay, buyer has right to: Refuse property receipt until payment, or deduct amount from property price after parties' agreement, or file lawsuit to force seller to pay.

How do I verify building violations before buying property?

Inquire via Balady electronic platform (balady.gov.sa) by deed number or municipality number. All registered violations will appear. Can also use certified engineer to inspect property and match with building permit.

Is seller responsible for defects even if unaware?

Yes, seller responsible for hidden defects even if personally unaware. This is called "hidden defects guarantee." But if buyer proves seller knew and deliberately hid defect, entitled to larger compensation.

How do I know if property allows adding floors?

Review original building permit. You'll find allowed number of floors and maximum height. Compare with current building. Also need structural engineering inspection to know if foundations can bear additional floors. Also inquire from municipality about current regulations.

What do I do if seller refuses to disclose building permit?

Can obtain copy of building permit from municipality directly (by deed number or municipality number). If seller refuses cooperation on this basic matter, this is red flag - may be hiding something. Better not complete deal.

Can I rely only on seller's words?

Never. Don't rely on verbal words or promises. Everything must be documented in writing and with official evidence: ownership deed, building permit, clearance certificates, engineering reports, detailed sales contract.

What's legal period for claiming after discovering hidden defect?

According to judicial practice in Kingdom, lawsuit must be filed within "reasonable period" from defect discovery. Usually estimated at 3-6 months. Long delay may be interpreted as implicit satisfaction with defect.

Conclusion

Selling or buying property isn't just simple financial transaction. It's legal process governed by strict regulations protecting both parties. Seller obligated to fully disclose property condition, defects, bills, violations. Buyer obligated to verify and inspect before signing. Ignorance of law doesn't exempt from responsibility.

Golden advice for seller: Disclose everything, pay all bills, correct violations before sale. Transparency protects you and builds trust.

Golden advice for buyer: Don't rush, verify everything, use specialists (engineer, lawyer), don't sign or pay until sure of property safety.

Official platforms exist to protect you: Balady platform for violations, Najiz platform for deeds, electricity and water applications. Use them before any decision.

Remember: An ounce of prevention is worth a pound of cure. Verification before purchase saves you thousands of riyals and countless legal problems. We wish you successful and safe real estate transaction!