12 Inquiries to ask Your Real Estate Developer Before Contracting

Nowadays, after the widespread of Purchase on Map system, numerous people will be engaging with a real estate developer for the first time.

The good thing is that the GCC is full of really good and dependable real estate developers, but still, you have to research and do your homework before signing a contract with one.

Before you purchase from a developer and get started, there are a few inquiries you should ask to be certain of their capabilities. After all, you are entrusting this person to build your dream home.

1. Get as many details as you can

البنية التحتية للمشروع

Don’t be shy to ask for more detailed information about the project and more data than displayed in the promotional outlets for the project schemes, location maps, etc. A good real estate developer will have this information ready and will be more than glad to share it with you.

2. The delivery date

If you are going to purchase on map, ask for the project delivery date. It’s worth mentioning that Saudi government has set a time frame of 20 months for developers to finish and deliver the units. However, you should still ask your developer to have a better understanding of when your new home will be ready.

3. Company Portfolio

مشروع تحت الإنشاء

Get to know more about your real estate developer. Although some information will be readily available online, such as the company’s establishment date and location and its first project date, you can still ask in person. This will help you understand more about your real estate developer. Moreover, feel free to ask any other question that crosses your mind.

4. License

Licenses are, of course, crucial when it comes to real estate development. Ask for the real estate activity license issued by the Purchase on Map Commission composed by Saudi Industry and Commerce Ministry. You can also ask for the project marketing permission issued by the same commission. Know that any company announcing, marketing, or selling any units on map or under construction without permission is violating the regulations and will fall under the law.

5. Safety Procedures and Regulations

اجراءات السلامة

Be positive and ask about the occupational safety procedures adopted by the company. If any worker was injured while working on your house, will he be fairly compensated? How does the company guarantee workplace safety? Understanding how your real estate developer deals with its employees is key to understanding the company.

Another question to ask is whether the company follows the occupational safety rules which state that working on uncovered sites or construction sites should stop at noontime during summer. This too is a pivotal point that will help you determine whether or not you wish to purchase a home from this developer.

6. Ongoing projects

Ask about the current development projects and the governorate’s schemes for developing your new home’s region. Development schemes include residential, commercial, touristic, and recreational projects. This question will give you a clearer vision of how the neighborhood will look in the future and how the surrounding area will grow.

7. Project Funding

Know the earmarked capital value for the project construction to find out if it’s sufficient or not. It’s preferable to quit dealing with developers who cover the project’s costs from its revenues as construction works could stall or stop by any problem. Most developers should be comfortable enough to answer this question freely and comfortably.

8. Backup Plan

الخطة الاحتياطية

Ask about the stumble scenario. What will happen if the project stalled? How will the company handle the situation? Would the stall be publicly announced? You should have enough information and guarantees to be protected from losing your investment in case of a stumble.

9. Project Infrastructure

Follow the main developer’s works, either public or private-sector developer, on establishing the scheme’s infrastructure including electricity network, water, drainage, rain drainage, etc. Afterall, it is important to know if the project is suffering from any infrastructure issues.

10. Project Engineer

Know the project’s engineering consultant who is responsible for supervising the project. The engineering consultant is entitled to supervise the project’s construction process. Furthermore, the consultant also submits technical reports about the construction proceedings every quarter. In case of delayed delivery, the consultant submits a report about the reasons behind the delay.

11. The professional network

It’s important for you to know that your commercial real estate developer has a broad network of reliable business partners in order to develop a smooth and successful project. The development and construction sectors revolve greatly around a variety of different professionals. Engineers, architects, general contractors, subcontractors, bankers, attorneys, as well as other professionals all play a part in the real estate development process. So you need to know who exactly the partners of your real estate developer are in order to be sure that you can trust them.

12. After-Sales

Finally, ask about the developer’s after-sales services. Is there a warranty on the project’s construction? Does the company offer free maintenance service for the house facilities? A healthy relationship between a client and company continues past the sale. Therefore, you want to guarantee you are buying a home from a company that will maintain a proper and professional relationship with you.

The past inquiries define by far the developer’s quality. You can evaluate the real estate developer through these questions in order to take the right decision, either proceed on contracting or quit and look for another developer. Each of these questions will allow you to build an image of how the developer operates. In any case, do not hesitate to ask about anything that crosses your mind. It is your right as a potential buyer to be comfortable with the developer and their upcoming project.