A small developer in Riyadh asks you to start selling apartments in a building that has not started yet. What must the project have before anyone can sell or collect money from buyers?

1. A building permit from the municipality only
2. A licence under the off-plan sale and lease law, issued through the Wafi program
3. An Ejar registration of each unit
4. A bank loan approval

Your buyer asks where his instalments go when he buys a licensed off-plan unit. What do you answer?

1. Into the developer's main company account
2. To the broker, who passes them on at handover
3. Into a dedicated escrow account at a bank, one account per project
4. To REGA, which pays the contractor

How are instalments on a Wafi licensed off-plan project generally structured for the buyer?

1. 100% upfront at booking
2. Linked to the actual construction phases of the project
3. Fixed monthly payments unrelated to progress
4. All at handover, nothing before

A Saudi family wants to buy a home still under construction with state support. Which Sakani option fits them?

1. The self-build option
2. The residential land option
3. The under-construction option, with a subsidised mortgage
4. Sakani only helps with ready homes

During the marketing licence period, before the full project licence, a developer may take reservation fees. What is the cap?

1. 10% of the unit value
2. 20% of the unit value
3. SAR 50,000 per unit
4. 5% of the unit value

How long can an off-plan marketing licence last before it must be renewed?

1. Up to 180 days
2. Up to 30 days
3. Up to 3 years
4. Until handover

A developer wants to withdraw money from a project's escrow account to pay the contractor. Who must approve the payment order besides the developer?

1. Only the bank manager
2. The project's consulting engineering firm and the certified public accountant
3. The buyers' committee by majority vote
4. The broker who sold the most units

A buyer worries that the developer's bank could seize the project money if the developer gets into debt. What protection does the off-plan law give?

1. None, the bank always has priority
2. Buyers must buy private insurance
3. REGA guarantees every unit price
4. Escrow funds are reserved for the licensed project and cannot be seized by the developer's creditors

An off-plan apartment is delivered late. What minimum compensation do the implementing regulations require for a delayed unit?

1. At least the fair market rent of the unit, set by an approved valuer
2. 1% of the price, one time
3. Nothing, unless written in a side letter
4. A free parking space

Work on a licensed project has stopped for 7 months with no reason accepted by REGA. What is the legal situation?

1. Nothing happens until the original handover date
2. Buyers must restart payments to help the developer
3. It counts as a developer default, and the standard contract lets REGA appoint an alternative developer
4. The bank becomes the owner of the units

A developer sends you renders and asks you to run Snapchat ads this week for a Jeddah tower. Which check comes first?

1. That the renders are high resolution
2. That the project holds a valid off-plan marketing or project licence, and that you get an advertising licence for the ad
3. That the developer has an Instagram account
4. That the price is below the district average

What is the cap on escrow money a developer can use for administrative, marketing and other non-construction expenses?

1. 5% of construction cost
2. 50% of collected payments
3. 20% of the value of units sold
4. No cap, as long as the accountant agrees

After the completion certificate is issued, what amount stays in escrow to cover hidden defects, and for how long?

1. 10% of the sale prices, for five years
2. 5% of the total construction cost, for one year after completion (or until a hidden defects insurance policy is provided)
3. 2% of the sale prices, until the last unit is sold
4. Nothing, escrow is closed at completion

What is the maximum criminal penalty for selling off-plan units or collecting buyers' money without a licence?

1. A warning and a SAR 10,000 fine
2. Licence suspension for six months
3. A fine of up to SAR 200,000
4. Up to five years in prison, a fine of up to SAR 10 million, or both

In September 2026 ROSHN opened its communities to eligible non-Saudi buyers. A non-Muslim expat wants a unit in ALMANAR. What do you tell him?

1. He cannot buy there: ALMANAR is in Makkah, where non-Saudi individual ownership is limited to Muslims
2. No problem, ROSHN communities are exempt from the rules
3. He can buy if he pays the 2% non-Saudi fee twice
4. He can buy if he holds a resident permit