How to Buy Land in Riyadh: From Search to Title Transfer

Buying land is one of the biggest financial decisions a family will ever make, and a small mistake at the start can end up costing you a lot of money. Riyadh in particular is a fast-moving market where prices vary from one neighborhood to the next, and sometimes from one street to another within the same subdivision plan.

In this guide, we walk you through the process step by step, from the first idea all the way to the moment the title deed is in your name.

Step 1: Work Out Your Real Budget, Not Just the Land Price

The most common mistake buyers make is budgeting for the land price alone, then being caught off guard by additional costs on transfer day. Your real budget is made up of:

The agreed land price.
The 5% Real Estate Transaction Tax (RETT) on the value of the land. By law it is levied on the seller, but the two parties usually agree between themselves on who will bear it, so put that agreement in writing from the start.
The broker's commission, which the Real Estate Brokerage Law sets at 2.5% of the transaction value unless both parties agree otherwise in writing. It is paid by the party who contracted with the broker.

A quick example: For a plot priced at SAR 2 million, if the buyer covers both the tax and the broker's commission, the actual cost comes to roughly SAR 2,150,000.

Important note: The "first home" exemption, under which the government covers the tax on behalf of Saudi citizens, applies only to ready-built residential units (villas, apartments, floors, duplexes) and does not cover land purchases. If you are buying land, do not build your budget around this exemption.

Step 2: Choose the Neighborhood With Your Head, Not Your Heart

Before you fall for a particular plot, ask yourself:

What is the goal? A home for you and your family, or an investment you expect to grow in value?
Where are your workplace and your children's schools? The daily commute takes more out of you than you might expect.
Services: mosques, schools, parks, main roads and the metro.
Price level: know the price per square meter in the neighborhood before you start negotiating.

You can view asking prices in more than 130 Riyadh neighborhoods on the land price map, so you have a clear picture before speaking with any seller.

Step 3: Check the Land on Paper Before You Check It on the Ground

This is the step that protects you from most problems, so never skip it, however tempting the offer.

1. Verify the Title Deed

Ask for the title deed number and verify it online through the Najiz platform or the Real Estate Exchange, both run by the Ministry of Justice.
If the land is in an area covered by the Real Estate Registry (in-rem registration), verify it through the Real Estate Registry platform run by the Real Estate General Authority (REGA).
Make sure the seller named on the deed is the person you are dealing with, or that they hold a valid power of attorney authorizing the sale.
Ask whether the land is mortgaged to a bank, and whether it is subject to any freeze or dispute. Mortgaged land cannot be transferred until the mortgage is released or the mortgagee gives its approval.

2. Match the Area and Boundaries

Confirm that the area and dimensions on the deed match the land on the ground, and that the plot number and subdivision plan number are correct.

3. Know the Building Regulations and Land Use

Residential land is different from commercial land, and every subdivision plan has its own requirements, including the number of floors, the building coverage ratio and the setbacks. You can look these up through the Balady platform services and the digital map of building regulations and land uses published by Riyadh Municipality (Amanah). Do not rely on verbal assurances on this point.

Step 4: Inspect the Land and Compare Smartly

A site visit is about more than just "seeing the land". Pay attention to these details, because they affect both the price and your future comfort:

Street width: a wider street usually raises the price per square meter.
Frontage: north-facing plots are in higher demand in many neighborhoods.
Corner plots: land on two streets costs more and comes with its own pros and cons.
Terrain: is it level, rocky or low-lying? This affects construction costs.
Neighbors and surroundings: are there existing buildings, empty plots or disruptive land uses nearby?

Compare the plot with similar plots in the same subdivision plan, of roughly the same size and on the same street width. Comparing a plot on a 15 m street with one on a 30 m street is not a fair comparison.

Step 5: Negotiate and Put the Agreement in Writing

Deposit (arboun): If you agree on a deposit, the Real Estate Brokerage Law caps it at 5% of the transaction value. Any amount above that is treated as part payment of the price.
Put everything in writing: the price, who bears the tax, the transfer date and the condition of the land.
Work with a licensed broker: A legitimate broker holds a FAL license from the Real Estate General Authority (REGA), signs a written brokerage contract with you, and must display an advertising license number on any listing they publish for the property. This protects your rights as well as theirs.

Step 6: The Electronic Title Transfer

Title transfer (ifragh) is now almost entirely electronic and can be completed on the same day if all conditions are met. The usual route is through the Real Estate Exchange:

The seller registers the transaction on the platform of the Zakat, Tax and Customs Authority (ZATCA) and obtains a reference number for the Real Estate Transaction Tax.
The seller logs in to the Real Estate Exchange via Nafath (the national single sign-on), selects the land and lists the transaction with the buyer's details and the agreed price.
The request reaches the buyer, who reviews the details and approves them.
The payment is made through the platform, the title deed is transferred electronically to the buyer's name, and the seller receives the funds.

If the land is registered in the Real Estate Registry, ownership is transferred through the Real Estate Registry platform itself.

Have these ready before transfer day:

Valid national IDs for both parties.
The seller's IBAN.
The tax reference number.
A mortgage release letter, if the land is mortgaged.
The power of attorney, if either party is represented by an agent.

Step 7: After the Purchase

Keep a copy of the title deed, the invoices and the tax receipt.
White land fees: The amended law imposes annual fees of up to 10% of the land's value on undeveloped land within the zones designated by the competent authorities, where the plot area, or the total land held by a single owner, is at least 5,000 m². Most ordinary residential plots fall below this threshold, but if you are buying large areas, factor it in.
If you plan to build: start with an accredited engineering office and obtain a building permit through the Balady platform before any work begins.

Common Mistakes to Avoid

Paying a deposit before verifying the title deed. Verify first, pay later.
Verbal agreements. Anything not in writing is hard to prove.
Dealing with someone who is not authorized to sell. Check the deed or the power of attorney.
Leaving the tax and commission out of your budget. That is roughly 7.5% extra.
Comparing the plot with prices across the whole neighborhood. Compare it with similar plots in the same subdivision plan.
Relying on hearsay about building regulations. Check with the official sources.

The Bottom Line

Buying land becomes simple and safe when you follow a clear sequence: a realistic budget, then the right neighborhood, then full verification of the deed and regulations, then inspection and comparison, then a written agreement, then a proper legal transfer.

If you are looking for land in Riyadh, send me your request through the Find Your Land page, and I will send you listed plots that match your budget and preferred neighborhood.

This article is general information for awareness purposes only and does not constitute legal or tax advice. Regulations and procedures may change, so always refer to the official sources: the Ministry of Justice, the Real Estate General Authority (REGA), the Zakat, Tax and Customs Authority (ZATCA) and the Balady platform.