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Buy Sell Agreement Between Co Owners Of Real Property Template for Saudi Arabia

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Key Requirements PROMPT example:

Buy Sell Agreement Between Co Owners Of Real Property

"I need a Buy Sell Agreement Between Co Owners Of Real Property for a commercial building in Riyadh, where three companies each own equal shares, with specific provisions for annual valuation and first right of refusal if any owner wishes to sell their share after March 2025."

Document background
The Buy Sell Agreement Between Co-Owners of Real Property is a crucial document used in Saudi Arabia when multiple parties own real estate together and wish to establish clear mechanisms for ownership transfers. This agreement becomes essential in situations involving joint property ownership, whether for investment, commercial, or residential purposes. It addresses key aspects such as triggering events for sales, valuation methods, transfer procedures, and payment terms, all while ensuring compliance with Saudi Arabian law and Sharia principles. The document is particularly relevant in the context of Saudi Arabia's Vision 2030 reforms, which have modernized real estate transactions while maintaining traditional legal requirements. It provides security and clarity for co-owners by establishing predetermined procedures for ownership changes, helping prevent potential disputes and ensuring smooth transitions when ownership changes are necessary.
Suggested Sections

1. Parties: Identification of all co-owners participating in the agreement, including their full legal names, addresses, and national ID numbers as required by Saudi law

2. Background: Brief description of the current ownership structure, property details, and purpose of entering into this agreement

3. Definitions: Definitions of key terms used throughout the agreement, including specific Arabic legal terms required under Saudi law

4. Property Description: Detailed description of the real property, including its location, dimensions, deed number, and registration details as per Saudi property registration requirements

5. Current Ownership Structure: Specification of current ownership percentages and rights of each co-owner

6. Buy-Sell Provisions: Core terms governing when and how ownership interests can be transferred between co-owners

7. Triggering Events: Specific circumstances that activate the buy-sell provisions

8. Valuation Method: Agreed mechanism for determining the property value when buy-sell provisions are triggered

9. Purchase Price and Payment Terms: Terms for calculating the purchase price and specified payment conditions

10. Transfer Process: Procedures for executing the transfer of ownership, including required governmental registrations

11. Representations and Warranties: Statements of fact and promises by each party regarding their authority, ownership, and the property's condition

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant courts for dispute resolution

13. Notices: Procedures for formal communications between parties

14. Execution: Signature requirements and execution formalities as per Saudi law

Optional Sections

1. Right of First Refusal: Optional section detailing process for offering shares to existing co-owners before external sale, recommended when parties want to maintain control over ownership composition

2. Management Rights: Optional provisions governing property management decisions, recommended for properties requiring active management

3. Profit Distribution: Optional section detailing how rental income or other profits are distributed, recommended for income-generating properties

4. Insurance Requirements: Optional section specifying insurance obligations, recommended for high-value properties

5. Mortgage Provisions: Optional section addressing existing or future mortgage arrangements, needed if property is or may be mortgaged

6. Sharia Compliance Declaration: Optional detailed section confirming compliance with Islamic principles, recommended for traditional parties or Islamic financing

7. Tax Matters: Optional section addressing tax responsibilities, recommended when complex tax implications exist

Suggested Schedules

1. Property Details Schedule: Detailed technical description of the property, including maps, plans, and registration documents

2. Ownership Schedule: Current ownership percentages and historical ownership information

3. Valuation Methodology: Detailed procedures for property valuation, including appointed valuers and specific methods

4. Required Notices and Forms: Templates for various notices and forms required under the agreement

5. Power of Attorney: Standard form of power of attorney for property transfers

6. Property Management Schedule: Details of property management arrangements if applicable

7. Registration Requirements: Checklist of documents required for property transfer registration with Saudi authorities

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































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Relevant Industries

Real Estate

Property Development

Construction

Investment Management

Banking & Finance

Professional Services

Hospitality

Retail

Industrial

Commercial Property

Relevant Teams

Legal

Real Estate

Compliance

Finance

Investment

Risk Management

Property Management

Corporate Affairs

Business Development

Operations

Relevant Roles

Real Estate Manager

Property Investment Director

Legal Counsel

Compliance Officer

Chief Financial Officer

Investment Manager

Asset Manager

Property Portfolio Manager

Real Estate Development Director

Corporate Lawyer

Property Rights Specialist

Transaction Manager

Risk Management Officer

Property Valuation Expert

Business Development Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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