Off-Plan Sales (Wafi): What to Know Before You Buy

## What does off-plan buying mean?

Off-plan buying is purchasing a real-estate unit before its construction is complete, based on approved plans and specifications. Because the unit is not ready at the time of purchase, special rules exist to protect buyers' funds and ensure the project is delivered.

## The role of the Wafi program

**Wafi** is the program that regulates the sale and lease of off-plan units in the Kingdom, operating under the umbrella of the authorities responsible for regulating the real-estate sector. The program requires a project to obtain a license before its units are offered, meaning the project has undergone a regulatory review before sales are permitted.

## The escrow account

One of the most important protection tools in off-plan sales is the **escrow account**:

- Buyers' payments are deposited into an account dedicated to the project, not the developer's general account. - Funds are released in stages according to actual construction progress, under oversight. - This reduces the risk of buyers' money being used on something other than their project.

## How to protect yourself

- **Verify the license**: confirm the project is licensed under the program before paying. - **Read the contract carefully**: specifications, delivery timeline, late-delivery penalties, and the handover mechanism. - **Understand the stages**: tie your payments to documented completion milestones. - **Keep the documents**: every receipt and contract annex matters.

## Warning signs

Be wary of offers asking you to transfer payments to personal accounts, projects marketed without a clear license, or verbal promises that do not appear in the contract.

Official sources: the Wafi program and the Real Estate General Authority (REGA).