Digital Revolution: Saudi Residential Rent Payments Go Ejar
The Real Estate General Authority in Saudi Arabia has implemented a new directive requiring all financial transactions related to residential rent payments to be conducted through the online Ejar platform, starting January 15. The directive applies to all new residential lease contracts, and any proof of rent payment outside the digital channels in Ejar (Mada and Sadad) will not be considered after this date. The move aims to streamline and digitize the rent payment process, providing greater efficiency and convenience for all parties involved.
The Real Estate General Authority has initiated steps to gradually stop issuing electronic receipt bonds for new residential contracts. Instead, payments will be settled automatically when made through one of the digital channels, eliminating the need to issue a receipt. This aligns with a Cabinet decision to make necessary arrangements for electronic payment services in rent contracts.
The implementation of this directive begins with landlords and tenants documenting the contract in Ejar through a licensed real estate broker. Subsequently, they are required to use the digital payment channels provided by Ejar for all payment transactions. After the payment of rent through Ejar's digital channels, the funds will be transferred to the lessor's bank account, as specified in the rental contract, within a maximum period of five working days.
This strategic move by the Real Estate General Authority reflects a commitment to modernize and digitize real estate transactions, fostering transparency and efficiency in the rental sector. The digitization of rent payments through Ejar is expected to benefit both tenants and landlords by providing a secure and convenient platform for financial transactions.
The directive not only supports the Kingdom's vision of digital transformation but also ensures that the real estate rental sector operates with enhanced ease and efficiency. As the initiative progresses, it is anticipated that the digitalization of rent payments will contribute to a more streamlined and transparent rental process, further reinforcing Saudi Arabia's position as a leader in adopting innovative solutions for the real estate industry.
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By- Sahiba Suri
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