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Logo of Mullak Program
Mullak Program announced the approval of more than 800 owners' associations for off-plan sales projects, after obtaining the necessary approvals to establish associations and appointing the developer as the association manager, according to Saudi Press Agency (SPA).
This was done through the sales contracts attached to the disclosure form, which includes the name of association, president, property manager, proposed subscription amount, and unit data.
Mullak indicated that off-plan sales associations aim to preserve the beneficiaries’ rights and enhance confidence in these products.
Accordingly, the new owner will be fully aware of the residential unit and obligations from subscription fees to the property manager, association president and other decisions related to the unit.
In the past, the association was established after the issuance of title deeds, which created a void between the developer’s exit and the association’s establishment, given the nature of these projects, delay in delivery of units, and absence of mandatory registration in the association. This eventually led to the failure of the establishment of associations and its proper activation.
Mullak confirmed that if the necessary information is not disclosed by the property developer for the off-plan sales projects, the purchaser has the right to terminate the sale contract within 30 days starting from signing date, or from the date of knowledge of that information if its concealment results in harm or invalidity of the set purpose.
Thus, the purchaser will not bear any costs arising from the contract termination, based on Article 6 of the law.
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