Why Are Real Estate Disputes So Hard to Resolve? A Comprehensive 2026 Guide: Causes of Lengthy Cases, Failed Auctions, and Quick Solutions

Introduction: Why Do Real Estate Disputes Last for Decades?

Have you ever heard of a family that inherited land from their grandfather 30 years ago and is still fighting over it today? Or a property listed in auction once, twice, three times without selling? Or a real estate case that entered the court system and only concluded years later, leaving everyone exhausted?

These are not rare stories—they are the reality many face in the Saudi real estate market. Real estate disputes are among the most complex and lengthy cases, and understanding their causes is the first step toward avoiding them or resolving them as quickly as possible.

In this comprehensive guide, we will reveal the real reasons behind the length of these disputes, explain the faster alternatives provided by the government, and introduce you to modern digital platforms that could save you years of suffering.

First: Why Do Inheritance Disputes Last 20-30 Years?

Inheritance property cases are among the longest-running cases in Saudi courts. It may seem strange at first, but when you understand the intertwined complexities, you will realize why a single case can extend for entire decades.

Asset Complexity and Diversity

The deceased may leave a diverse estate including properties in different cities, company shares, funds in multiple banks, vehicles, jewelry, and even debts owed to or by them. Inventorying all these assets requires significant time and effort, especially if the deceased had not organized their affairs before passing.

Missing or Overseas Heirs

In some cases, an heir may be residing outside the Kingdom, missing, or their whereabouts unknown. Division cannot be completed without the consent of all heirs or a court ruling, adding months or years to the case. Coordination with embassies for international estates can take 3 months or more.

The Munasikhat Phenomenon

Munasikhat occurs when one of the heirs dies before the estate is distributed, bringing their new heirs into the case. Imagine a father passed away leaving 5 children, then one child died before the division leaving 4 children—now there are 8 heirs instead of 5. This accumulated complexity across generations is one of the biggest causes of lengthy cases.

Property Valuation Disputes

Heirs often disagree on the property's value. One sees it worth 5 million, another sees 3 million. The need for certified appraisers, objections to their reports, and requests for revaluation all extend the case's lifespan.

Missing or Incomplete Documents

This problem alone causes 50% of real estate disputes. Old deeds may have unclear boundaries, be missing, or overlap with other deeds. Proving ownership in such cases requires witnesses, evidence, and significant time.

An Heir Refusing Division

Sometimes an heir refuses sale or division for emotional reasons (the family home, for example) or financial reasons (wanting to keep a revenue-generating property). In this case, other heirs must file a forced division lawsuit, which involves lengthy and complex procedures.

Important Statistics

9,498 inheritance cases were recorded in just 18 months, including 2,260 cases in the Makkah region alone. This huge number reflects the scale of the problem and the importance of advance estate planning.

Second: Why Do Real Estate Auctions Fail Repeatedly?

Property auctions are supposed to be a quick solution for selling property and distributing its value to heirs or creditors. But reality shows that many auctions fail to achieve a sale, and the property may be listed multiple times without success.

Investor Hesitation and Wait-and-See Attitude

In 2025, the auction market witnessed investor reluctance as they awaited market balance decisions. This hesitation caused 10 commercial properties to fail to sell in a single Riyadh auction, including land on Khurais Road and the Sports Boulevard.

Overpricing

One of the biggest causes of auction failure is setting an opening price that is too high and does not reflect the actual market value. When the price exceeds market expectations, no one comes forward to bid.

Buyer Withdrawal After Winning

A concerning phenomenon occurred in several major auctions. Agricultural land north of Riyadh spanning over 5 million square meters valued at over 800 million SAR—the buyer withdrew months after winning the auction. A major Jeddah deal saw the winning consortium request an additional 7+ months to complete payment.

Unethical Practices

Some auctions witness unethical practices such as outside-auction agreements between some bidders and auction companies, which erodes trust among serious investors. The General Authority for Real Estate has stopped non-compliant auctions and referred organizers to the Public Prosecution.

Property Issues

Sometimes the listed property has legal or technical problems: boundary disputes, incomplete deeds, expensive infrastructure needs, or location in an unattractive investment area.

Market Transformation 2025

2025 witnessed a major transformation following the Crown Prince's directives to achieve balance in the real estate sector. Transaction values decreased by 30.6% compared to the previous year, but traded areas increased to 4.1 billion square meters. This means the market has shifted from price speculation to transactions based on real property value.

Third: Multiple Judicial Authorities - Where Do You File Your Case?

One reason for real estate dispute complexity is the multiplicity of competent judicial authorities. Each type of dispute has a different authority, and not knowing the right one can waste precious time.

General Courts

Handle most real estate disputes such as ownership claims, property encroachment, deed overlaps and boundary issues, division of jointly-owned properties among non-heirs, and neighbor and easement disputes.

Personal Status Courts

Handle inheritance property division cases among heirs according to Islamic Sharia. If the dispute is between siblings who inherited property from their father, the competent court is the Personal Status Court.

Commercial Courts

Handle real estate disputes of a commercial nature, such as company disputes over properties or disputes arising from real estate investment deals. Average case resolution time is 60-120 days, with a maximum of 180 days for first instance.

Financial Disputes Committees

Handle disputes arising from real estate finance lease contracts, which combine sale and lease characteristics.

Board of Grievances (Administrative Court)

Handles appeals against expropriation decisions for public benefit, such as objecting to land expropriation for a government project or demanding fair compensation.

Real Estate Contributions Committees

Handle disputes related to old real estate contributions that failed or whose profits were not distributed.

Important Advice

Before filing any lawsuit, consult a specialized lawyer to accurately determine the competent authority. Filing with the wrong authority means wasting months then having to refile from scratch.

Fourth: Real Estate Arbitration - The Fast Solution You May Not Know About

While court cases can take years, there is a much faster alternative: real estate arbitration. The Saudi Center for Real Estate Arbitration offers solutions that can end your dispute in just 30 days!

What is the Saudi Center for Real Estate Arbitration?

A specialized center established in 1440H by decision of the General Authority for Real Estate, operating under its umbrella. It aims to settle real estate disputes through alternatives to traditional judiciary, and its rulings are binding and enforceable by the Ministry of Justice just like court rulings.

Arbitration Duration

The biggest advantage of arbitration is speed. While a case may take years in courts, real estate arbitration commits to a period not exceeding 30 days in many cases, and may extend to several months in complex cases, but remains much shorter than the traditional judicial path.

Center Achievements

The center received over 163 real estate disputes and resolved 45% of them through reconciliation and arbitration. It trained 21 arbitrators and qualified 5 conciliators to handle cases.

Center Jurisdiction

The center handles disputes arising from Ejar program, owners associations, Wafi off-plan sales program, real estate brokerage, and construction contracts. However, it does not handle criminal disputes, direct property sale/purchase disputes, or old real estate contributions.

Available Resolution Mechanisms

Reconciliation is an agreement between parties with help from a certified conciliator, and the agreement is final and binding. Mediation aims to bridge viewpoints without binding any party. Arbitration is dispute resolution through a binding ruling from an arbitrator or panel, considered an executable title.

How to Submit an Arbitration Request

Submit electronically through the center's platform at reac.sa. You need a written arbitration agreement (contract clause or separate agreement), dispute description and supporting documents, and specification of the disputed amount.

Golden Advice

When signing any real estate contract, add a clause referring any dispute to real estate arbitration. This clause alone could save you years of litigation in the future.

Fifth: Government Digital Platforms - A Revolution in Dispute Resolution

As part of Vision 2030, the Saudi government launched a set of digital platforms that have made a qualitative leap in the real estate sector and contributed to reducing disputes and accelerating their resolution.

Real Estate Registry (rer.sa)

This platform is the most important in preventing disputes before they occur. The in-kind registration system gives each property a unique identity with a special number, precise coordinates, and comprehensive history of all transactions. The deed issued from the Real Estate Registry gains absolute authenticity after one year of publishing owner lists, meaning it cannot be contested afterward. This system eliminates deed overlap and dual ownership problems that cause 50% of disputes.

Unified Estates Platform

A smart platform that automatically inventories the deceased's estate. It communicates with banks to reveal balances, Ministry of Justice for properties, Traffic for vehicles, and Ministry of Commerce for commercial registrations. It issues an official document ready for consensual estate division, shortening months of manual work and reviews.

Najiz Platform

The Ministry of Justice's electronic portal offering comprehensive services including electronic lawsuit filing, property transfer, contract documentation, case tracking, and judgment appeals.

Ejar Platform

Organizes the relationship between landlord and tenant through unified electronically documented contracts, significantly reducing rental disputes.

Infath Auctions Center

A government center supervising judicial auctions with high transparency. In December 2025 alone, it supervised 78 auctions selling over 1,022 real estate assets across various regions of the Kingdom. Judicial supervision ensures auction integrity and protects all parties' rights.

Real Estate Exchange

A Ministry of Justice platform for real estate wealth management, trading, and mortgage, providing transparent data on market movement and transactions.

Digital Transformation Results

User satisfaction rose from 78% in 2022 to 92% in 2025. The first phase of in-kind registration covered 64,366 properties in Riyadh, Makkah, Madinah, and the Eastern Region.

Sixth: Other Reasons for Real Estate Dispute Complexity

Besides what we mentioned, there are additional factors that extend real estate disputes.

Population Growth and Urban Expansion

Rapid population increase raises demand for land and properties, exacerbating disputes over ownership, boundaries, and property rights.

Rapid Urban Development

Mega projects and rapid development can cause property boundary overlaps or expropriations without fair compensation.

Poor Old Documentation

Many old properties are documented with traditional deeds lacking precision in boundary and area definition, opening the door to disputes.

Family Conflicts

Sometimes real estate disputes are merely a front for deeper family conflicts, with the property becoming an arena for struggle rather than the actual subject of dispute.

Real Estate Speculation

Speculation raises prices illogically, complicating valuation processes and increasing disputes over fair value.

Seventh: How to Avoid Real Estate Disputes

Prevention is better than cure. Here are practical steps to avoid falling into a lengthy real estate dispute.

Before Buying

Verify deed validity through Najiz or the Real Estate Registry. Ensure there is no mortgage, seizure, or restrictions on the property. Request a certified survey plan showing precise boundaries. Use a specialized lawyer to review the contract before signing.

When Signing Contracts

Add a real estate arbitration clause to resolve any future dispute. Document everything in writing and do not rely on verbal agreements. Keep copies of all documents in a safe place and digitally.

For Estate Planning

Organize your affairs before it is too late: inventory your properties and register them in the Real Estate Registry. Write a clear will if you have specific wishes within Sharia limits. Inform your heirs of important document locations. Consider dividing some assets while alive to avoid disputes.

When a Dispute Occurs

Try amicable settlement first as it is faster and less costly. Consider real estate arbitration before resorting to courts. Consult a specialized lawyer to determine the best path. Do not procrastinate as delay complicates matters and increases costs.

Frequently Asked Questions

How long does an inheritance property case take in court?

Duration varies depending on case complexity, number of heirs, and their level of agreement. It can take from a few months if heirs agree, to many years if there is disagreement, munasikhat, or missing heirs.

What is the difference between court and real estate arbitration?

Court is mandatory, longer in duration, and has formal procedures. Arbitration is optional (requires party consent), much faster (30 days in some cases), and more confidential. Both issue binding and enforceable rulings.

Can I object to a property valuation report?

Yes, you can object and request revaluation by another expert, but this extends the case duration.

What if one heir refuses sale or division?

Other heirs have the right to file a forced division lawsuit in the Personal Status Court. The court may rule to sell the property at auction and distribute its value to heirs according to their Sharia shares.

Is registration in the Real Estate Registry mandatory?

Yes, in announced real estate zones. Failure to register within the specified period subjects the owner to fines, though registration remains possible afterward.

How do I know which authority handles my case?

Best to consult a specialized lawyer. As a general rule: inheritance disputes go to Personal Status Court, commercial disputes to Commercial Court, ownership and boundary disputes to General Court, Ejar and owners association disputes to real estate arbitration.

Important Numbers and Platforms

Electronic Platforms

Real Estate Registry: rer.sa. Real Estate Arbitration: reac.sa. Najiz Platform: najiz.sa. Ejar Platform: ejar.sa. Infath Center: infath.gov.sa. Real Estate Exchange: reb.gov.sa.

Consultation Entities

General Authority for Real Estate: rega.gov.sa. Ministry of Justice: moj.gov.sa.

Conclusion

Real estate disputes are complex by nature, but understanding their causes and knowing available alternatives enables you to deal with them wisely. Real estate arbitration provides a quick solution that can shorten years of litigation. Government digital platforms have greatly facilitated procedures. Most importantly: advance planning and good documentation are the best prevention against disputes.

Share this guide with your family and friends, especially those with shared properties or undivided estates. Knowledge is power, and prevention is better than years of suffering in court corridors.