Off-Plan Sales in Saudi Arabia: Wafi Licensing, Escrow and Selling Well

In Saudi Arabia, selling homes before they are built is regulated under the Wafi programme. The rules exist to protect buyers, and a developer who explains them clearly earns trust faster. This guide summarises how Wafi works and how to present an off-plan project well.

The legal basis

Off-plan sale and lease of real estate is regulated by Council of Ministers Resolution No. 536 of 2016 and its implementing regulations. These cover licensing, escrow accounts, the rights of buyers and duties of developers, inspection companies and the project register. The Real Estate General Authority (REGA) publishes a procedural guide for licensing, marketing, selling and managing off-plan projects.

Licensing is now faster

REGA reports that off-plan sales licences are now issued instantly once the requirements are complete, through an integrated electronic system. Previously the process could take more than 30 working days.

Escrow protects buyer money

Buyer payments go into a project escrow account at a bank, and are released to the developer against construction progress. REGA has integrated with several local banks to open escrow accounts automatically. Refunds from escrow are possible in cases such as cancelled marketing permits, delays of more than 180 days, or failure to obtain a sales licence.

Presenting an off-plan project well

• Lead with the licence. Show the Wafi licence and the escrow bank on your project page and brochure.
• Show the master plan as a live map. Buyers want to see which villa or unit they are buying, what it faces, and what is still available. A live map on the satellite view does this better than a static brochure.
• Keep inventory in one place. Your team and your brokers should see the same availability, so nobody sells a unit twice.
• Remind buyers before every instalment. Off-plan payments run for months or years. Reminders and receipts keep buyers confident and payments on time.

This guide is general information, not legal advice. Check the current requirements with REGA before launching a project.