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Vacant and Idle Properties: The Legal Framework for Reviving Land and Buildings Frozen Due to Regulatory Gaps

Introduction: When Real Estate Turns from an Investment Asset into a Legal and Financial Burden

Real estate represents one of the most important assets relied upon by companies, investors, and individuals to build wealth and grow investments. However, owning a plot of land or a building does not necessarily mean generating an economic return from it. Vacant land may remain undeveloped for years, while buildings may remain closed or unused despite being located in prime areas within cities. Gradually, these properties turn from assets with investment potential into frozen capital that fails to deliver the expected benefits.

The problem is not limited to the loss of potential investment returns. Idle real estate may be associated with ownership disputes, planning complications, incomplete permits, conflicting land uses, third-party rights, or difficulties reaching agreements among partners and heirs. These factors may overlap with regulatory obligations and the fees imposed on vacant land and unoccupied properties, making continued non-use a source of financial and legal risks.

In the Kingdom of Saudi Arabia, the regulatory framework governing vacant land and unoccupied properties has undergone significant developments. The most notable include the amendment of the Vacant Land Fees Law, changing its name to the Vacant Land and Unoccupied Properties Fees Law under Royal Decree No. (M/244), dated 7/11/1446 AH, followed by the issuance of the Executive Regulations for Vacant Land Fees in August 2025 and the Executive Regulations for Unoccupied Property Fees in May 2026.

These developments reflect a regulatory direction aimed at increasing the supply of developed land and real estate units, encouraging the actual utilization of real estate assets, and limiting practices that leave land and buildings idle and prevent them from fulfilling their economic role.

However, reviving idle property does not simply mean paying fees or obtaining a building permit. It requires a comprehensive legal and regulatory assessment that begins with verifying ownership, continues with reviewing planning requirements, permits, and rights associated with the property, and ends with selecting the appropriate investment or development solution.

In this article, we examine the regulatory framework governing vacant land and unoccupied properties, the applicable fees, the main legal obstacles that prevent their development, the available options for addressing these obstacles, and the role of a lawyer in transforming idle real estate into an asset that can be utilized and invested in.

First: What Are Vacant Land and Unoccupied Properties?

Although the terms vacant land and unoccupied properties are both associated with non-utilization, each has a different legal definition, and the conditions and procedures for applying fees also differ.

1. Vacant Land

According to the definition contained in the Vacant Land and Unoccupied Properties Fees Law, vacant land refers to undeveloped land that is capable of development within urban boundaries.

This means that land is not subject to the law merely because it is undeveloped. Its location, development or construction potential, presence within the geographical area announced for fee application, and fulfillment of the remaining legal requirements must all be considered.

Examples of land that may fall within this framework include:

Undeveloped residential land within urban boundaries.
Land designated for uses covered by the decision to apply the fee.
Large plots of land for which infrastructure development has not been completed.
Land retained by its owner without implementing an urban development project, despite being suitable for development.

It is important to distinguish between vacant land subject to the fee and land that cannot be developed due to a recognized legal or technical obstacle. The mere absence of construction is not sufficient, on its own, to determine that land is subject to the fee.

2. Unoccupied Properties

Unoccupied properties, on the other hand, refer to buildings located within urban boundaries that have remained unused for an extended period without an acceptable justification, where their non-use or lack of utilization affects the availability of sufficient real estate supply in the market.

This includes buildings or independent parts of buildings that are suitable for occupancy under the definitions and controls set out in the Executive Regulations.

Examples include:

Completed residential buildings that remain closed for extended periods.
Real estate units suitable for rental but left unused.
Commercial buildings that have ceased operations without a recognized justification.
Properties owned by an individual or an establishment that remain unused despite being suitable for occupancy.

However, not every closed building is subject to the fee. The law and its Executive Regulations require several criteria to be met, including location, type of use, vacancy period, the minimum number of properties owned by the liable party, and the level of utility and service consumption.

The fundamental difference: Vacant land refers to undeveloped land that can be developed within urban boundaries, whereas unoccupied properties refer to buildings that remain unused according to specific criteria. Each category has its own executive regulations and a different mechanism for determining the scope of application and applicable fees.

Second: The Regulatory Framework for Vacant Land and Unoccupied Property Fees

The Vacant Land and Unoccupied Properties Fees Law is the primary legal reference governing fees imposed on vacant land and unoccupied buildings in the Kingdom.

The law was initially dedicated to vacant land. However, Royal Decree No. (M/244), dated 7/11/1446 AH, was issued to amend its name and expand its scope to include unoccupied properties, in addition to amending several of its provisions.

What Are the Objectives of the Law?

The main objectives of the law include:

Increasing the supply of developed land and real estate units.
Contributing to a balance between supply and demand in the real estate market.
Making land and residential units available at reasonable prices.
Limiting the hoarding of vacant land without development.
Improving the efficiency of real estate asset utilization within cities.
Protecting fair competition and limiting practices that negatively affect real estate supply.

These objectives demonstrate that the law is not simply intended to collect money from property owners. Rather, it is part of a broader regulatory policy aimed at encouraging development and making use of idle properties.

What Fees Apply to Vacant Land?

Article Three of the amended law stipulates an annual fee of no more than 10% of the land’s value, in accordance with the controls specified in the regulations. This applies to vacant land owned by natural or legal persons, excluding state-owned properties.

The Minister also issues decisions identifying the geographical scope of fee application and the areas of land subject to the fee. The area of the land, or the total area of land subject to application as determined by the regulations, must not be less than 5,000 square meters.

The Executive Regulations for Vacant Land Fees classify annual fees into the following categories according to urban development priorities:

Category	Annual Fee Rate
Highest Priority	10%
High Priority	7.5%
Medium Priority	5%
Low Priority	2.5%
Outside Priority Areas	No annual fee

This does not mean that every plot of land measuring 5,000 square meters is automatically subject to the fee. Other requirements must also be met, including its location within the announced geographical scope, its suitability for development or construction, and the inclusion of its designated use among the uses specified in the relevant decision.

What Fees Apply to Unoccupied Properties?

Article Three of the law stipulates an annual fee on unoccupied properties calculated as a percentage of the fair rental value, not exceeding 5% of the property’s value, in accordance with the law and its Executive Regulations.

The law also authorizes the Council of Ministers to increase this percentage to 10%, based on a proposal from the Ministerial Committee.

It is important not to confuse the maximum rate stipulated by the law with the rate actually applied to each property. Decisions and regulations determine the scope of application, the applicable rate, and the related criteria.

Do These Fees Mean That the Owner Must Build Immediately?

No. The law establishes controls for identifying the land and buildings subject to fees. It also regulates circumstances in which fee application may be suspended, including the existence of recognized obstacles that prevent development or construction, subject to the conditions set out in the Executive Regulations.

Accordingly, dealing with idle property should begin by identifying the reason for its non-utilization and determining whether that reason qualifies as a legally recognized obstacle. It should not be assumed that every case of vacancy or construction delay automatically results in fees.

Legal Reference: “Vacant Land and Unoccupied Properties Fees Law – Bureau of Experts at the Council of Ministers”

https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/6932e745-0f61-4f25-9e4a-a9a700f21d6b/1

Third: When Is Vacant Land Subject to Fees, and Which Cases Are Exempt?

Determining whether vacant land is subject to fees does not depend on its area alone. Rather, it is linked to a set of conditions that must be assessed collectively.

According to the Executive Regulations for Vacant Land Fees, the following conditions must be met for land to be subject to the fee:

1. The Land Must Qualify as Vacant Land

This means that it must be undeveloped land that has not been developed or built upon according to the legal definition.

Merely fencing the land or carrying out superficial works does not necessarily constitute full development that suspends the fee. The regulations distinguish between developing land and constructing buildings on it.

2. The Land Must Be Suitable for Development or Construction

This is an important factor when assessing the legal status of the land.

Land may remain undeveloped while facing a genuine obstacle that prevents the completion of construction or development procedures, such as a regulatory conflict, the absence of essential technical requirements, or an obstacle beyond the owner’s control.

In such cases, the nature of the obstacle and whether it meets the legal requirements must be examined.

3. The Land Must Be Within the Announced Geographical Scope

It is not sufficient for the land to be located within general urban boundaries. It must also fall within the geographical area covered by a decision to apply the fee.

Therefore, the relevant announcements, maps, and approved decisions should be reviewed rather than relying solely on the property’s geographical location.

4. The Minimum Area Requirement Must Be Met

The area of the land, or the combined area of vacant land owned by one person and subject to application within the city, must not be less than 5,000 square meters, in accordance with the controls specified in the regulations.

This means that reviewing multiple property holdings may be necessary before determining whether the fee applies.

5. The Land Use Must Be Among the Specified Uses

The designated use is determined according to urban boundary maps, detailed plans issued by the competent authorities, and the provisions of the decision to apply the fee.

The legal outcome may vary depending on the land’s designated use and whether it falls within the scope of the relevant decision.

When Is the Fee on Vacant Land Suspended?

Article Eight of the Executive Regulations identifies circumstances in which the fee application is suspended. The most notable include:

The absence of one of the conditions required for the fee to apply.
The existence of an obstacle preventing the liable party from disposing of the land during the statutory period, provided that the liable party did not cause or contribute to that obstacle.
The existence of an obstacle preventing the issuance of the licenses and approvals required for development or construction, provided that the liable party did not cause it.
Completion of the land’s development or construction within the statutory period for paying the fee.

The regulations also allow the competent committee to grant the liable party an additional period to complete development or construction, depending on the land’s area and nature, in accordance with the approved controls.

This highlights the importance of documenting any obstacle preventing development. Simply claiming that construction is difficult is not sufficient, on its own, to benefit from the provisions relating to suspension of the fee.

Fourth: Unoccupied Properties — When Is a Building Considered Unused and Subject to Fees?

The controls governing unoccupied properties differ from those applicable to vacant land. A building may be complete and suitable for use, yet it will not be subject to the fee unless the legal criteria are met.

The Executive Regulations for Unoccupied Property Fees, issued on May 15, 2026, identify a set of conditions that must be examined before a building is considered subject to the fee.

1. Vacancy Period

According to Article Seven of the regulations, buildings located within urban boundaries are considered unoccupied when they have not been utilized for six consecutive or non-consecutive months during the reference year.

The Minister may amend this period through a decision following the approval of the Ministerial Committee.

2. The Building Must Be Within the Fee Application Area

It is not sufficient for the building to be located within urban boundaries. It must also fall within the geographical area designated by a decision to apply the fee.

3. The Building Must Be Suitable for Occupancy

The building must be suitable for occupancy or have obtained an Occupancy Certificate, depending on the type of use and the property’s location.

The Occupancy Certificate is an important document demonstrating that the building has met the requirements necessary for occupancy under the relevant regulations.

4. The Use Must Be Among the Specified Uses

The building’s designated use must be among the uses covered by the decision to apply the fee.

The type of use is determined only according to the approved regulatory plans issued by the competent authorities or the building’s Occupancy Certificate.

5. The Minimum Number of Properties Must Be Met

The number of unoccupied properties owned by the liable party within the application area must not be lower than the minimum specified in the decision according to the type of use.

Therefore, it is incorrect to assume that every owner of a single closed unit will automatically be subject to the fee.

6. Failure to Meet the Minimum Utility Consumption Threshold

The regulations include a condition relating to failure to reach the minimum level of consumption of utilities and services allocated to the building’s type of use, according to criteria issued by a ministerial decision following approval by the Ministerial Committee.

This criterion helps verify the building’s actual use rather than relying solely on its description or visible condition.

Are There Circumstances in Which the Fee on an Unoccupied Property Is Suspended?

Yes. Article Ten of the regulations identifies circumstances in which the fee application is suspended. The most notable include:

The absence of one of the conditions required for the fee to apply.
The existence of an obstacle preventing occupancy of the building, provided that the liable party did not cause or contribute to it.
Transfer of ownership of the building through a sale documented by a legally recognized instrument.
Issuance of an Occupancy Certificate for the building during the reference year, taking into account the exception in the regulations concerning the full activation of the electricity supply before the certificate’s issuance date.
The existence of urgent and recognized reasons for the vacancy, provided that the building is registered as the liable party’s primary address in accordance with the relevant regulations and that supporting documents are submitted.

These provisions confirm that examining the property’s circumstances and supporting documents may directly affect whether the fee is payable.

Reference: “Executive Regulations for Unoccupied Property Fees – Umm Al-Qura Newspaper”

https://www.uqn.gov.sa/decisions-and-regulations/4000950

Fifth: Regulatory Gaps That Leave Land and Buildings Idle — Where Does the Problem Begin?

Some property owners may believe that an idle property simply needs financing or an investor to become active again. However, in reality, certain properties face legal or regulatory problems that make their utilization impossible or more complicated than it appears.

The most common problems include:

1. Discrepancies Between Ownership Documents and Actual Conditions

The information in an ownership document may not match the property’s actual boundaries, area, or description. There may also be differences between the document and approved plans.

This problem affects development, subdivision, and property transaction procedures. It may require correcting the data or completing registration procedures in accordance with the law.

This highlights the importance of the Real Estate Registration Law, which regulates the registration of properties and the rights and obligations associated with them, aiming to improve the accuracy of ownership information.

2. Conflict Between Property Use and Regulatory Plans

An investor may own land intended for conversion into a commercial, residential, or investment project, only to discover that its designated use under the approved plan does not match the proposed project.

The owner cannot assume that the designated use can be changed simply at their discretion. The approved plan and relevant requirements must be reviewed, and the necessary approvals must be obtained from the competent authorities.

3. Incomplete Infrastructure

Development may be suspended because roads, water, electricity, sewage networks, or other public utilities have not been completed.

In such cases, the nature of the deficiency must be identified, along with the authority responsible for completing the relevant infrastructure and the extent to which its absence affects the issuance of permits or project implementation.

The availability of public services and access to utilities are also among the criteria considered when assessing land value for the purposes of vacant land fees.

4. Licensing and Approval Complications

Certain projects may require multiple approvals depending on their nature, location, area, and technical requirements.

The absence of a single approval may delay the entire project, even if the owner is ready to begin implementation.

Therefore, a clear licensing plan should be prepared, identifying the required permits, competent authorities, technical requirements, and expected timelines for each procedure.

5. Joint Ownership and Disputes Among Partners

One of the most complicated reasons for property remaining idle is joint ownership without a clear agreement on development, management, sale, or distribution of returns.

One partner may refuse to finance the project, object to changing the property’s use, or insist on retaining their share without approving any transaction.

Such cases require reviewing ownership documents, partnership agreements, and rights associated with the property, followed by identifying a legal solution that protects the rights of all parties.

6. Third-Party Rights Over the Property

A property may be subject to a mortgage, usufruct right, easement, judicial dispute, or previous contractual obligation.

These rights may restrict the owner’s ability to sell, develop, or change the property’s use, depending on their nature and scope.

Therefore, legal due diligence should not be limited to confirming the owner’s name in the ownership document. It must also include reviewing the rights, restrictions, and transactions associated with the property.

7. Buildings Delayed Due to Violations or Technical Problems

A building may already exist but remain unsuitable for occupancy because of construction violations, failure to meet safety requirements, or structural problems.

In such cases, it is necessary to determine whether the problem can be resolved through correction, renovation, or completion of the required standards, or whether a different solution is needed.

The fundamental rule: Not every unused property should be treated as the same case. Land facing a licensing obstacle differs from property subject to an ownership dispute, and an unsafe building differs from a completed unit that its owner has simply left unused.

Sixth: The Legal Scenario for Reviving Frozen Vacant Land

Reviving vacant land requires a plan that begins by identifying its legal and regulatory status, followed by selecting the appropriate solution, whether development, construction, partnership, or sale.

This process can be organized into the following stages:

Stage One: Reviewing Ownership and Legal Status

The process begins with reviewing the ownership document, survey data, land boundaries, and location, while verifying whether there are any mortgages, third-party rights, or disputes that may affect the owner’s ability to dispose of the property.

It is also necessary to ensure that the document’s information matches the actual conditions and approved plans, and to resolve any discrepancies before beginning development procedures.

Stage Two: Determining Whether the Fees Apply

It is necessary to verify whether the land is located within a city and geographical area officially announced for the application of vacant land fees, and to review the land’s area or the total area of the liable party’s holdings, as well as its designated use.

The applicable priority category, annual fee rate, date on which the fee became applicable, and any invoices issued must also be reviewed.

Stage Three: Identifying Regulatory Obstacles

A list of obstacles preventing development should be prepared, such as:

Incomplete public utilities.
Conflict between the approved plan and the intended use.
Problems with ownership documents.
Failure to obtain the required approvals.
Existing property rights or restrictions.
Disputes among partners or heirs.

The authority responsible for addressing each obstacle, the required documents, and the necessary legal procedure should then be identified.

Stage Four: Assessing the Possibility of Suspending the Fee

If a recognized obstacle prevents the issuance of the licenses or approvals required to develop or construct on the land, evidence proving its existence should be collected. It must also be verified that the owner did not cause or contribute to the obstacle.

It may be appropriate to submit the supporting documents to the competent authority through the approved procedure to determine whether the provisions for suspending the fee apply.

Not every administrative or technical delay automatically suspends the fee. The legal conditions must be met, and the obstacle must fall within the circumstances recognized by the regulations.

Stage Five: Selecting the Investment Solution

After addressing the obstacles, the available options can be considered, including:

Direct Development: Implementing infrastructure works in accordance with the approved permits and plans.

Construction: Building the project in compliance with building permits and technical requirements.

Investment Partnership: Entering into an agreement with a real estate developer who undertakes project implementation in exchange for an agreed share or return.

Sale: Disposing of the land after reviewing financial obligations, outstanding fees, and the regulatory requirements associated with transferring ownership.

Ownership Restructuring: Addressing joint ownership or organizing shares and rights through legal procedures when the problem results from multiple owners or conflicting interests.

Stage Six: Documenting Implementation and Proving Development

After development or construction begins, permits, contracts, work records, invoices, and technical documents proving completion should be retained.

Documentation helps establish whether the requirements for suspending fee application or addressing related invoices have been fulfilled, depending on the circumstances and applicable legal provisions.

Seventh: How Can Unoccupied Buildings Be Revived?

Reviving an idle building differs from developing vacant land. The building may already exist, but the problem may lie in its lack of utilization, its unsuitability for occupancy, or the existence of an obstacle preventing its operation.

The process should begin by identifying the reason for the vacancy, followed by selecting the appropriate legal and technical solution.

1. Reviewing the Building’s Condition and Occupancy Certificate

It is necessary to verify whether the building is suitable for occupancy, whether it has obtained the required Occupancy Certificate, and whether it complies with the Saudi Building Code and related requirements.

2. Addressing Technical and Regulatory Violations

If the building is unsuitable for use due to violations, structural defects, or safety requirements, the necessary corrective works must be identified and the required approvals obtained before operation.

3. Identifying the Reason for Non-Utilization

Vacancy may result from disputes among owners, a dispute over the right to use the property, a failed lease agreement, force majeure circumstances, or a lack of demand for a particular type of unit.

Identifying the reason affects the choice of the appropriate solution, as resolving a legal dispute differs from remarketing the building or renovating it.

4. Reviewing the Conditions for Applying the Fee

All conditions contained in the Executive Regulations for Unoccupied Property Fees must be examined, including the vacancy period, geographical scope, type of use, minimum number of properties, and utility and service consumption.

5. Submitting Documents When a Recognized Justification Exists

If the vacancy results from an urgent and recognized reason, or if an obstacle prevents occupancy of the building, supporting documents should be submitted to the Ministry in accordance with the applicable controls.

Simply claiming that a reason exists for the property’s non-use is not sufficient. It must be supported by relevant documents and facts.

6. Selecting the Method of Reutilization

Once the building’s readiness has been confirmed, several options may be considered, including:

Renting out residential or commercial units.
Operating the building through a specialized company.
Entering into a partnership with an investor.
Renovating the building and upgrading its facilities.
Changing the property’s use, if permitted by the approved plans and regulations and after obtaining the necessary approvals.

The objective is not merely to avoid fees, but to transform the property into a productive asset that generates genuine economic value.

Eighth: Objecting to Vacant Land and Unoccupied Property Fees — When and How?

A decision may be issued to subject land or an unoccupied property to fees, or the property’s value or the amount of the fee may be assessed in a way that the owner believes does not reflect the actual conditions or applicable legal criteria.

In such cases, the notification should not be ignored, nor should the owner rely solely on a verbal objection. Instead, the decision should be examined, the grounds for objection identified, and supporting documents prepared.

In Which Cases Can an Objection Be Submitted?

According to Article Eight of the Vacant Land and Unoccupied Properties Fees Law, the owner of vacant land or an unoccupied property, or anyone legally treated as such, may object to decisions concerning:

Subjecting vacant land to the fee.
Subjecting an unoccupied property to the fee.
Assessing the value of vacant land or an unoccupied property.
Determining the amount of the fee due.

What Is the Statutory Objection Period?

The objection must be submitted in writing to the committee referred to in Article Seven of the law within sixty days from the date the concerned party is notified of the decision.

The committee must decide on the objection within sixty days from the date it is submitted. If this period passes without a decision, the objection is considered rejected.

What Documents Support an Objection?

Depending on the circumstances, the documents may include:

Proof of ownership.
Approved plans and survey data.
Relevant permits and approvals.
Evidence of an obstacle preventing development or construction.
Technical and engineering reports.
Real estate valuation documents.
Evidence demonstrating that one of the conditions for applying the fee is not met.
Documents establishing the building’s condition or the reason for its vacancy.

Can the Committee’s Decision Be Challenged?

Yes. The law permits challenges to the committee’s decisions before the competent Administrative Court, in accordance with the relevant legal rules and procedures.

It is important not to confuse an administrative objection to a fee application decision with a judicial challenge to the committee’s decision. Each has its own procedures, deadlines, and requirements.

Why Must an Objection Be Both Legal and Technical?

Some objections do not depend solely on interpreting legal provisions. They may also rely on technical information, such as land area, location, availability of utilities, market value, or the building’s suitability for occupancy.

Therefore, preparing a strong objection may require cooperation between a lawyer and an engineer or accredited real estate valuer, depending on the nature of the dispute.

Ninth: Fees, Fines, and Restrictions on Real Estate Transactions

One mistake some property owners make is believing that leaving land undeveloped or a building unused results only in continued inactivity. In reality, failure to comply with the law and its regulations may lead to additional financial obligations.

1. Financial Fines

Article Six of the law stipulates that anyone who violates the provisions of the law or its regulations may be subject to a financial fine not exceeding the amount of the fee due on their land or unoccupied property, without prejudice to the obligation to pay the outstanding fee.

Accordingly, the fine does not replace the fee. Depending on the violation and the decision issued, both may apply.

2. Collection of Outstanding Fees

The Ministry is responsible for collecting fees and fines in accordance with the prescribed legal procedures. The regulations also establish provisions concerning payment deadlines, notifications, and invoices.

For vacant land, the Executive Regulations stipulate that the fee must be paid within one calendar year from the date the invoice is issued, with special provisions for invoices issued for previous years and additional periods granted for development or construction.

For unoccupied properties, the relevant regulations stipulate payment within six months from the date the invoice is notified, with special provisions for invoices relating to previous years.

3. The Effect of Fees on Transferring Land Ownership

An important development is the issuance of Council of Ministers Decision No. (263), dated 12/3/1448 AH, published on September 4, 2026. The decision stipulates that no real estate transaction transferring ownership of land subject to the law may be documented, whether through sale or otherwise, until payment of the outstanding fees has been verified.

The decision also regulates the documentation of transactions that do not transfer ownership, in a manner that preserves the state’s right to collect the fees without affecting land development.

This development makes reviewing outstanding fees an essential step before completing real estate transactions involving land subject to the law.

4. The Consequences of Delaying the Settlement of Obligations

Ignoring invoices, failing to provide required information, or not following up on notifications may result in accumulated financial obligations or violations.

Therefore, owners should monitor the electronic portal and official notification channels, verify decisions and invoices, and avoid postponing their review until the time of sale or project commencement.

Reference: “Council of Ministers Decision No. (263) Concerning the Documentation of Real Estate Transactions for Land Subject to Fees – Umm Al-Qura Newspaper”

https://www.uqn.gov.sa/decisions-and-regulations/4001765

Tenth: Joint Ownership and Heirs — How Can Disputes Prevent Property Revitalization?

Land or a building may be technically suitable for development, yet multiple owners, heirs, or disputes among partners may delay the project for years.

These cases require legal resolution before an investment decision is made.

1. Reviewing the Owners’ Shares

The owners, their respective ownership percentages, and the rights associated with their shares must be identified. The validity of ownership documents and previous transactions should also be verified.

2. Organizing the Relationship Between Partners

A written agreement can be prepared to specify:

Each partner’s responsibilities.
The project’s financing mechanism.
The decision-making process.
Distribution of profits and returns.
Allocation of expenses and obligations.
Procedures for selling shares or withdrawing from the partnership.
Methods for resolving disputes.

3. Considering Property Subdivision or Re-Subdivision

In some cases, subdividing a property into independent units may be an appropriate solution, provided that the nature of the property and applicable regulatory requirements permit it.

The Law of Ownership, Subdivision, and Management of Real Estate Units regulates subdivision and re-subdivision procedures. It also addresses changes to the uses of jointly owned properties and requires the necessary approvals from the General Assembly, the mortgagee if applicable, and the competent authorities.

4. Resorting to the Courts When Agreement Is Impossible

If the partners cannot reach an agreement regarding the division or disposal of the property, it may be necessary to refer the matter to the competent court, depending on the nature of the ownership, the claims, and the rights in dispute.

5. Organizing the Management of Jointly Owned Properties

If a property consists of subdivided units and common areas, organizing management and maintenance through the Owners’ Association and the mechanisms established by law can help prevent disputes relating to operation and use.

Most importantly, the property should be treated as a jointly owned asset with rights and obligations, rather than simply as an area owned by several people without a clear management structure.

Reference: “Law of Ownership, Subdivision, and Management of Real Estate Units – Bureau of Experts at the Council of Ministers”

https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/d19fbfe8-6517-4e8b-b06a-b09000cefe1b/1

Eleventh: The Role of the Real Estate Registration Law in Addressing Property Ownership Issues

Accurate ownership information is one of the most important requirements for reviving idle land and buildings. Any discrepancy in property data may affect sale, mortgage, development, or the issuance of permits.

The Real Estate Registration Law regulates the registration of properties and their associated rights, emphasizing the importance of accurate information and data recorded in the real estate register.

How Does Real Estate Registration Help Protect the Owner?

Real estate registration helps to:

Document property information, location, and boundaries.
Improve the accuracy of ownership information.
Organize real estate rights and obligations.
Support ownership transfer and property transaction procedures.
Regulate property subdivision and consolidation procedures in accordance with legal requirements.

How Can an Owner Address Discrepancies in Property Data?

If an owner discovers a discrepancy between the ownership document and the actual property or approved plans, the nature of the discrepancy should first be identified. The relevant correction or updating procedures should then be followed with the competent authority.

It is not advisable to begin a major development project before resolving significant discrepancies that may affect the property’s boundaries, area, or owners’ rights.

Does Real Estate Registration Resolve All Property Disputes?

Not necessarily. Registration organizes property data and the rights falling within its scope, but it does not eliminate the need to resolve judicial or contractual disputes that may arise among owners or rights holders.

Therefore, reviewing the real estate register should be combined with examining contracts, rights, restrictions, and disputes associated with the property.

Reference: “Real Estate Registration Law – Bureau of Experts at the Council of Ministers”

https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/c9756bfb-ff81-4226-a820-ae8200dc074c/1

Twelfth: The Role of a Lawyer in Reviving Idle Land and Buildings

Reviving idle property is not merely an engineering development process or an investment decision. It may require addressing matters relating to ownership, rights, permits, fees, and contractual obligations.

This is where a lawyer plays an important role in determining the property’s legal status, selecting the appropriate procedures, and protecting the owner’s or investor’s rights throughout the resolution and development process.

1. Conducting Legal Due Diligence on the Property

The lawyer reviews ownership documents, contracts, mortgages, rights, restrictions, and disputes associated with the property to identify risks that may prevent its sale or development.

2. Reviewing Fee Decisions

A lawyer can examine decisions subjecting land or buildings to fees, verify whether the legal conditions apply, review invoices and valuations, and determine whether grounds for objection exist.

3. Preparing Objections and Appeals

Objecting to fee decisions requires clear grounds and supporting documents. These may involve legal and technical matters relating to value, geographical scope, development potential, or suitability for occupancy.

4. Resolving Ownership and Partnership Disputes

A lawyer can assist in reviewing agreements among partners and heirs, drafting withdrawal, development, or management agreements, and initiating judicial proceedings when settlement is not possible.

5. Reviewing Development and Investment Contracts

Real estate development projects require carefully drafted contracts that define the obligations of the developer, owner, and financier; the project timeline; costs; distribution of returns; and liability for delays or breaches.

6. Following Up on Licensing Procedures

A lawyer can help organize regulatory requirements and necessary approvals, review correspondence and decisions issued by the competent authorities, and determine the appropriate legal procedures when delays or refusals occur.

7. Protecting Rights During Sale, Mortgage, or Ownership Transfer

Before completing a real estate transaction, outstanding fees, rights, restrictions, and obligations that may affect ownership transfer or transaction documentation must be reviewed.

Accordingly, a lawyer’s role is not limited to resolving disputes after they arise. It also extends to preventing problems that may cause a property to remain idle and lose its investment value.

Thirteenth: A Practical Seven-Step Plan for Turning Idle Property into a Productive Asset

Property owners and investors can follow an organized practical plan to revive their properties, taking into account that procedures differ depending on whether the property is vacant land or an unoccupied building.

Step One: Collecting Documents

Prepare the ownership document, plans, permits, contracts, correspondence, invoices, and any other documents related to the property.

Step Two: Determining the Legal Status

Verify the owners, ownership shares, mortgages, rights, restrictions, and disputes, and ensure that ownership information is accurate.

Step Three: Determining the Regulatory Status

Review urban boundaries, designated land use, technical requirements, required permits, and the availability of public utilities.

Step Four: Reviewing Fees and Obligations

Determine whether the property is subject to vacant land or unoccupied property fees, and review the relevant decisions, invoices, deadlines, and possible objections.

Step Five: Addressing Obstacles

Develop a legal and technical plan to resolve ownership, licensing, infrastructure, partnership, or building-condition problems.

Step Six: Selecting the Investment Model

Determine whether development, construction, leasing, partnership, sale, or ownership restructuring is the most suitable option.

Step Seven: Documenting All Procedures

Retain approvals, permits, contracts, technical reports, and evidence of completion to ensure the property’s legal status remains clear and the rights of the owner and investor are protected.

This plan helps transform property management from a series of disconnected decisions into an integrated project with a clear legal, regulatory, and investment foundation.

Fourteenth: Frequently Asked Questions About Vacant Land and Unoccupied Properties

Is Every Undeveloped Plot of Land Subject to Vacant Land Fees?

No. The land must be suitable for development or construction, located within the announced geographical scope, meet the minimum area and designated-use requirements, and satisfy the other conditions set out in the law and its regulations.

Is Every Closed Building Subject to Unoccupied Property Fees?

No. Several conditions must be met, including the vacancy period, location within the application area, suitability for occupancy, inclusion of its use among the specified uses, fulfillment of the minimum number of properties, and failure to meet the minimum utility consumption threshold.

What Is the Vacant Land Fee Rate?

Annual rates range from 2.5% to 10% of the land’s value under the Executive Regulations, depending on the urban priority category, geographical scope, and decision issued regarding application.

What Is the Maximum Fee for Unoccupied Properties?

The law stipulates an annual fee calculated as a percentage of the fair rental value, not exceeding 5% of the property’s value. The percentage may be increased to 10% by a Council of Ministers decision based on a proposal from the Ministerial Committee.

Can Vacant Land Fees Be Suspended Due to Delays in Issuing a Permit?

The fee may be suspended if a recognized obstacle prevents the issuance of the licenses and approvals required to develop or construct on the land, provided that the liable party did not cause or contribute to the obstacle, and subject to the conditions and procedures set out in the regulations.

Can the Fee on an Unoccupied Property Be Suspended If the Building Is Unsuitable for Use?

The fee may be suspended if an obstacle prevents occupancy of the building, provided that the liable party did not cause the obstacle and that the conditions and controls adopted by the Ministry are met.

What Is the Objection Period for a Decision Subjecting a Property to Fees?

The objection period is sixty days from the date the concerned party is notified of the decision, according to Article Eight of the Vacant Land and Unoccupied Properties Fees Law.

Can Land Subject to Vacant Land Fees Be Sold Before the Fees Are Paid?

Council of Ministers Decision No. (263) of 1448 AH stipulates that no real estate transaction transferring ownership of land subject to the law may be documented until payment of the outstanding fees has been verified.

Can Land Be Developed in Partnership with a Real Estate Developer?

Yes. A partnership with a real estate developer may be considered through a contract defining the parties’ rights and obligations, participation percentages, costs, timeline, and distribution of returns, while ensuring that all required permits and regulatory approvals are obtained.

Can a Dispute Among Heirs Prevent Property Development?

A dispute may delay development or disposal of the property, depending on the nature of the ownership and the rights involved. The ownership documents, shares, and agreements should be examined before determining the appropriate solution, whether through settlement, partition, or referral to the competent court.

Conclusion: Idle Property Is Not a Lost Asset — It Is an Opportunity That Requires the Right Legal Approach

Vacant land and unoccupied buildings represent an economic and regulatory challenge. At the same time, they offer investment opportunities that can be recovered when handled correctly.

The development of the Vacant Land and Unoccupied Properties Fees Law and its Executive Regulations has helped establish a more comprehensive framework for regulating undeveloped land and unused buildings, while specifying the conditions for applying fees, the applicable rates, circumstances in which fees may be suspended, and property owners’ rights to object to relevant decisions.

However, reviving property cannot be achieved simply by paying fees or submitting an application to an administrative authority. It requires reviewing ownership, examining plans, verifying permits, addressing overlapping rights, assessing financial obligations, and then selecting the appropriate development or investment model.

This highlights the importance of seeking assistance from a lawyer specializing in real estate matters to assess the property’s legal status, address obstacles preventing its utilization, review fee decisions, and protect the rights of owners and investors throughout the development and transaction process.

Suleiman Al-Omari Law Office – Lawyers and Legal and Sharia Consultants

Suleiman Al-Omari Law Office provides specialized legal services in real estate matters, reviewing ownership documents, resolving disputes among partners and heirs, examining decisions concerning vacant land and unoccupied property fees, preparing objections and appeals, and reviewing development, investment, and real estate transaction contracts. These services help property owners and investors protect their rights and address regulatory obstacles that prevent them from benefiting from their real estate assets.

📞 Contact: +966537778130

This article is for educational purposes only and does not constitute a substitute for specialized legal advice.

Official References and Regulations

Vacant Land and Unoccupied Properties Fees Law – Bureau of Experts at the Council of Ministers:
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/6932e745-0f61-4f25-9e4a-a9a700f21d6b/1
Executive Regulations for Vacant Land Fees – Umm Al-Qura Newspaper:
https://www.uqn.gov.sa/details?p=27369
Executive Regulations for Unoccupied Property Fees – Umm Al-Qura Newspaper:
https://www.uqn.gov.sa/decisions-and-regulations/4000950
Council of Ministers Decision No. (263) Concerning the Documentation of Real Estate Transactions for Land Subject to Fees – Umm Al-Qura Newspaper:
https://www.uqn.gov.sa/decisions-and-regulations/4001765
Real Estate Registration Law – Bureau of Experts at the Council of Ministers:
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/c9756bfb-ff81-4226-a820-ae8200dc074c/1
Law of Ownership, Subdivision, and Management of Real Estate Units – Bureau of Experts at the Council of Ministers:
https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/d19fbfe8-6517-4e8b-b06a-b09000cefe1b/1