Saudi White Land Fees Must Be Paid Before Property Ownership Transfer

Saudi Arabia has introduced an important transaction-clearance requirement for land subject to the White Land Fees and Vacant Properties Law.

Under Cabinet Decision No. 263, an ownership-transferring real estate transaction involving covered land cannot be officially documented until payment of the fees due on that land has been verified.

The Cabinet adopted the decision on 12 Rabi’ Al-Awwal 1448, corresponding to 25 August 2026. It was officially published in the Umm Al-Qura Gazette on 4 September 2026.

This is a confirmed Cabinet decision, not a consultation draft or general policy announcement. The official text is available in the Umm Al-Qura Gazette.

However, the published text does not state a separate commencement date or explain the complete electronic verification procedure. The ministerial committee referenced in Article 14 of the law must establish the relevant controls and procedures.

Until those procedures are published, buyers, sellers, brokers and lenders should prepare for the new clearance requirement without assuming how the final transaction-checking system will operate.

Saudi White Land Fees Property Transfer Rule at a Glance

What Cabinet Decision No. 263 Says

The decision establishes two different treatments depending on whether a real estate transaction transfers ownership.

Transactions That Transfer Ownership

An ownership-transferring transaction involving land subject to the White Land Fees and Vacant Properties Law cannot be documented until payment of the fees due has been verified.

A sale is the most obvious example of a transaction that transfers ownership. Other arrangements may also fall within this category if their legal effect is to transfer ownership of the land.

The decision focuses on official documentation of the transaction. It does not provide a complete explanation of how authorities will perform the verification or what document will constitute acceptable proof of payment.

Transactions That Do Not Transfer Ownership

The decision also addresses transactions involving covered land that do not transfer ownership.

Such transactions may be documented only through arrangements that:

• Preserve the government’s ability to collect the fees due; and

• Do not interfere with the development of the land.

The ministerial committee referenced in Article 14 must establish the controls and procedures governing these transactions.

Mortgages, security interests and certain other dealings may be relevant to this part of the decision. However, the exact classification and documentation requirements for individual transactions should not be assumed before the detailed procedures are issued.

The Cabinet decision and its date were also reported through the official Saudi Press Agency Cabinet announcement, while the Minister of Municipalities and Housing explained that the measure is intended to protect government rights and encourage land development.

Which Properties Are Affected?

The restriction does not apply automatically to every land sale or property transfer in Saudi Arabia.

Three conditions are important:

1. The asset must be land covered by the White Land Fees and Vacant Properties Law.

2. Fees must be due on that land.

3. The proposed transaction must transfer ownership for the payment-verification restriction to apply directly.

Landowners and buyers should review the current White Land Fees and Vacant Properties portal and the applicable official regulations when determining whether a particular parcel may be covered.

Fee liability can depend on factors such as:

• The relevant geographical scope;

• The land’s location;

• Applicable implementation stages;

• Land area;

• Development status;

• Permitted use;

• Ownership position;

• Applicable exemptions; and

• The assessment or invoice issued by the competent authority.

The decision should therefore not be interpreted as meaning that every seller in Saudi Arabia must obtain White Land Fee clearance for every residential or commercial property.

Does the Rule Cover Vacant Buildings?

The governing legislation is called the White Land Fees and Vacant Properties Law. However, the operative wording of Cabinet Decision No. 263 specifically refers to ownership transactions involving land subject to that law.

The decision should not be extended to every transfer of a vacant apartment, office, warehouse or completed building without confirming that the asset and transaction fall within the applicable legal provisions.

The official regulations for white land and vacant properties should be reviewed separately because they address different types of underused real estate.

The White Land Fees implementing regulations provide the broader regulatory framework for identifying covered land, assessment and owner obligations.

Why This Decision Matters to Property Buyers

Before this decision, a buyer might have concentrated primarily on ownership, title status, boundaries, mortgages and seller authority.

White Land Fee liability must now be treated as an essential pre-transfer due-diligence issue when acquiring potentially covered land.

An unpaid liability could prevent official documentation of the ownership transfer. In practice, that may affect:

• The closing date;

• Release of the purchase price;

• Bank financing;

• Registration arrangements;

• Development schedules;

• Contractual completion conditions;

• Possession of the land;

• Investor exit timelines; and

• The parties’ rights if completion is delayed.

This does not mean that an unpaid fee automatically makes the underlying sale contract invalid. The published decision addresses documentation of the ownership transfer. Contract validity, termination rights and financial consequences will depend on the applicable law and the terms of the agreement.

Buyers should verify both the seller and the land before making an irreversible payment. Our guide on how to verify property ownership before buying in Saudi Arabia explains the broader ownership-verification process.

What Sellers Should Do Before Closing

Owners preparing to sell potentially fee-liable land should investigate the position early instead of waiting until the scheduled transfer date.

A seller should consider:

1. Confirming whether the land is within an applicable fee area.

2. Reviewing the property’s deed and ownership information.

3. Checking whether a White Land Fee invoice has been issued.

4. Reviewing the amount and payment status of any fee.

5. Identifying pending objections or disputed assessments.

6. Obtaining available payment evidence.

7. Informing the buyer about any unresolved liability.

8. Allowing enough time to resolve the matter before closing.

9. Reviewing the sale agreement with a qualified Saudi lawyer.

10. Monitoring the forthcoming ministerial procedures.

The official White Land Fees portal currently provides a service through which users can check whether a fee exists using the deed number. The availability of that inquiry does not establish that it will be the final ownership-transfer clearance mechanism under Decision No. 263.

Buyer’s White Land Fee Due-Diligence Checklist

A buyer considering undeveloped or potentially covered land should complete the following checks before signing or paying a substantial deposit.

Identify the Exact Land

Confirm:

• Deed number;

• Plot number;

• Plan number;

• Registered area;

• Boundaries;

• Municipality;

• Permitted use; and

• Registered owner.

The buyer should ensure that all documents refer to the same parcel. Review the Saudi property title deed verification guide before relying on a deed supplied by the seller.

Check Whether the Land May Be Covered

Review the current geographical scope, implementation stage and relevant land conditions through official sources.

Do not assume that the land is exempt simply because:

• It is outside central Riyadh;

• It is held by a company;

• It has multiple owners;

• The owner intends to develop it;

• A building permit application has been submitted; or

• The seller has not disclosed an invoice.

Request Evidence From the Seller

Ask the seller to provide available evidence showing:

• Whether an invoice has been issued;

• The amount assessed;

• The payment deadline;

• Payment status;

• Any objection or appeal;

• Any exemption or non-liability decision; and

• The latest correspondence from the competent authority.

The published decision does not yet specify the exact certificate, receipt or electronic confirmation that will be accepted during documentation.

Make Closing Conditional on Clearance

The purchase contract should explain that completion and release of closing funds are conditional on the transaction being capable of official documentation.

Buyers can use the Saudi property purchase contract checklist to review other important provisions relating to deposits, refunds, financing, default and registration.

Recheck Before the Transfer Appointment

The parties should not rely only on information obtained at the beginning of negotiations.

Where possible, the fee position should be rechecked shortly before the scheduled documentation or registration date because a new invoice, updated assessment or other event could affect closing.

Contract Clauses Buyers and Sellers Should Review

A sale contract involving potentially covered land should clearly allocate responsibility for White Land Fees and transfer clearance.

The parties should consider provisions covering the following issues.

Seller’s Representation

The seller should accurately state whether the land is subject to the fee and whether any amount is outstanding.

Responsibility for Existing Fees

The agreement should identify who is responsible for fees relating to periods before completion.

The parties should not assume that a private contractual allocation will override obligations imposed by law or the authority.

Evidence of Payment or Non-Liability

The contract should state what evidence the seller must provide before closing, while allowing the requirement to be updated when official procedures are published.

Condition Precedent

Official confirmation that the transfer can be documented may be included as a condition that must be satisfied before the buyer releases the final purchase amount.

Long-Stop Date

The parties should agree on a final date for resolving outstanding fees and completing the transfer.

Delayed or Refused Documentation

The agreement should address what happens if the documentation authority refuses or postpones the transfer because fee payment cannot be verified.

Deposit Refund

If the transaction cannot be documented, the contract should explain whether and when the buyer’s deposit will be refunded.

Termination and Indemnity

The parties should address termination rights, recoverable costs and responsibility for losses resulting from inaccurate information or a failure to clear an outstanding fee.

These provisions should be drafted or reviewed by a qualified Saudi legal professional, particularly for high-value land acquisitions.

Impact on Developers

Developers acquiring undeveloped land face both transaction and project-scheduling risks.

Before committing acquisition funds, a developer should consider:

• Whether the land is covered by the fee system;

• Whether invoices have been issued;

• Whether an assessment is disputed;

• Whether transfer documentation can be completed;

• Who must clear historical liabilities;

• Whether acquisition financing depends on successful registration;

• Whether delayed transfer could affect permits or development milestones; and

• Whether the seller’s statements are supported by official evidence.

Developer due diligence should also cover project licensing, financial capacity and regulatory history. Buyers can review our guide on checking a Saudi real estate developer for additional project-level checks.

Impact on Banks and Lenders

Banks and lenders may need to consider whether outstanding White Land Fees could affect:

• Registration of ownership;

• Creation or documentation of security;

• Timing of loan disbursement;

• Satisfaction of financing conditions;

• Property valuation;

• Enforcement planning; and

• Completion of a financed acquisition.

The decision states that non-ownership-transferring transactions must preserve the government’s right to collect outstanding fees and must not interfere with land development.

However, detailed requirements for mortgages, charges and other security arrangements remain subject to the forthcoming ministerial controls.

Lenders should therefore avoid assuming that every non-transfer transaction can continue through the existing process without an additional fee-related check.

Impact on Brokers and Transaction Professionals

Brokers, lawyers and transaction coordinators should raise the White Land Fee question early.

Before advertising or progressing the sale of potentially covered land, a broker should ask:

• Is the land within an applicable fee area?

• Has the seller checked the official portal?

• Has a fee invoice been issued?

• Is any amount unpaid?

• Is there an objection or appeal?

• Can the seller provide payment evidence?

• Does the contract make closing conditional on clearance?

• Has enough time been allowed before the proposed transfer date?

A broker should not describe land as “fee-free” or “cleared” without reliable evidence.

A Practical Interim Transaction Process

Until the ministerial committee publishes the official controls, parties can use the following process as a risk-management framework. This is not an official government workflow.

1. Verify the owner, deed and exact land.

2. Check whether the parcel may fall within the fee framework.

3. Use the official portal to investigate whether a fee exists.

4. Ask the seller for the latest invoice and payment information.

5. Identify objections, appeals or unresolved assessments.

6. Include fee clearance as a contractual completion condition.

7. Avoid releasing final funds before documentation can proceed.

8. Recheck the position shortly before closing.

9. Obtain professional advice where the position is unclear.

10. Monitor new ministerial controls and procedures.

After completion, buyers should also follow an appropriate property handover checklist where the transaction includes physical possession, keys, documents, utilities or development obligations.

What Remains Unconfirmed

Cabinet Decision No. 263 establishes the core legal requirement, but several operational questions remain unanswered.

At the time of this article’s last review, the published decision did not clarify:

• The electronic verification mechanism;

• Which authority will conduct the payment check;

• What documents will be accepted as proof;

• Whether a formal clearance certificate will be issued;

• How disputed or appealed assessments will be handled;

• Whether partial payment or a payment plan will be sufficient;

• How contracts signed before publication will be treated;

• The detailed requirements for mortgages and security interests;

• Whether later instructions will specify an operational start date; or

• How quickly a transfer can proceed after payment.

These matters should be described as awaiting implementation guidance.

Common Misconceptions

“The rule applies to every Saudi property sale.”

No. It applies to ownership-transferring transactions involving land subject to the relevant law where fees are due.

“Every parcel of undeveloped land automatically owes fees.”

Not necessarily. Liability depends on the applicable legal conditions, geographical scope, implementation stage and assessment.

“Signing a sale agreement completes the transfer.”

No. A private agreement and official documentation of ownership are different stages.

“The buyer automatically becomes responsible for the seller’s unpaid fee.”

The decision does not establish that general rule. Liability and contractual allocation should be checked for the specific transaction.

“An online portal result is already the final transfer-clearance certificate.”

The current portal can assist with inquiries, but the final verification mechanism under Decision No. 263 has not yet been published.

“The decision changes White Land Fee rates.”

The decision concerns documentation and payment verification. It does not itself announce a new fee rate.

Conclusion

Cabinet Decision No. 263 creates an important closing requirement for Saudi land transactions.

Where land is subject to the White Land Fees and Vacant Properties Law and fees are due, an ownership-transferring transaction cannot be officially documented until payment has been verified.

For sellers, this makes early review of invoices and payment status essential. For buyers, White Land Fee clearance should become part of title, ownership and contract due diligence. Developers, brokers and lenders should also account for the possibility that an unresolved liability may delay closing, registration or financing.

At the same time, parties should not invent procedures that the government has not yet announced.

The exact verification mechanism, acceptable documents, treatment of disputes, mortgage controls and any separate operational date remain subject to further guidance from the ministerial committee.

This article provides general information and does not constitute Saudi legal, tax, financial or investment advice. Parties dealing with affected land should confirm the current position through official Saudi sources and obtain professional advice for their specific transaction.

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