The Saudi Cabinet approved, today, Tuesday, Real Estate Expropriation System For the public interest and temporary possession, this legislative step reflects the goals of Saudi Vision 2030 to enhance transparency and protect owners' rights, in addition to accelerating the completion of development projects.
Real Estate Expropriation: A Paradigm Shift in Protecting Owners' Rights
The governor confirmed General Authority for State PropertiesDr. Abdulrahman bin Hamad Al-Harkan said that the new system represents a qualitative leap in protecting owners' rights and ensuring fairness and transparency in all stages of expropriation and compensation. He noted that all procedures will be conducted according to precise mechanisms and under the supervision of specialized committees within the Authority.
Fair evaluation and additional compensation
Al-Harkan explained that the appraisal of the expropriated properties will be conducted by appraisers accredited by the Saudi Authority for Accredited Appraisers, at fair market value plus a 20% additional compensation. The system also provides compensation for temporary possession based on fair rent plus a 20% increase.
Tax exemptions and reduced fees
One of the most prominent provisions of the system is granting owners whose properties have been expropriated a tax exemption for a period of five years, equal to or less than the value of the compensation, when they purchase alternative properties. This exemption will take effect from the date of receipt of the compensation amount.
The system also exempts owners from white land fees if they obtain alternative land as compensation.
Unified reference and specialized committees
The Authority's Governor explained that the system unifies all expropriation and temporary possession procedures within the General Authority for State Properties, through committees comprising representatives from a number of government agencies. Requesting agencies are required to provide the necessary financial allocations before initiating any procedure, ensuring speedy completion and preventing delays.
Government alternatives before expropriation
The system also emphasized the need to search for available government properties to meet the needs of public projects before resorting to expropriating private property, in order to achieve a balance between the public interest and protecting citizens' rights.
