KSA’s Infath and Wafi Hold Cooperation Agreement to Address Delayed Real Estate Projects
Entrustment and Liquidation Center (Infath) and Off-Plan Sales or Rent Committee (Wafi) held a joint cooperation agreement to enable Wafi to entrust the liquidation supervision of licensed real estate projects for off-plan sales, in case of extended delays or failing delivery, Saudi Press Agency reports.
The agreement aims to guarantee the rights of all contracting parties in the project including buyers, companies and financiers. Infath was represented by Turki Al-Khalaif, the Executive President of the Entrustment and Liquidation Center, while Wafi was represented by Secretary General Naif Al-Sharif in the signing ceremony.
The liquidation option of the licensed real estate projects for off-plan sale is one of the regulatory instruments that enable Wafi, as the authorized entity for issuing off-plan sale licenses in the Kingdom of Saudi Arabia, to achieve its objectives. By regulating selling activities and keeping buyers’ rights in case the developers cannot implement or complete the project according to the time plan and the approved models and specifications. The liquidation will reduce incurred risks of such type of investment in the real estate sector which enhances supporting investments and increasing the number of projects, as the licensed investments attained a high growth rate in the number of the offered real estate units.
Entrustment and Liquidation Center (Infath) is an independent governmental center, seeking to build cooperation between the judicial and governmental entities in areas of liquidations and sales of assets that are entrusted by judicial entities or other assets that are not subjected to a current legal dispute.
Through entrusting the assets to technically specialized entities and supervising their actions which contributes in keeping the value of the assets, speeding up the process of rights fulfillment, and achieving the judicial and economic value in the society.
The Off-Plan Sale or Rent Program (Wafi) grants licenses to sell and rent real estate units (on the map) of all types (residential – commercial – investment – office – service – industrial – tourist), and enhances the ability of real estate developers who implement such projects. Sale licenses issued by Wafi require the marginalization of the project lands and the contractual process management between the relevant parties, such as; operating escrow accounts of the project in a local bank, regulating spending according to the achievement rates and the engineering reports provided by engineering consultant and chartered accountant, and regular follow-up for engineering works and quality.