Terms and conditions

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Terms and Conditions of Financing Ijara (the lease) where the transfer is by way of promise to give hibah (gift) and Ijara mawsufah fi zimmah (forward lease which involves the sale of a clearly specified underlying asset, which is currently being produced or constructed, for a future delivery) where the transfer is by way of promise to give hibah (gift)

 

Firstly, Terms and Conditions of Financing Ijara product with the promise to give hibah (gift)

 

  

General Conditions:

1- The client has acknowledged that he has had the opportunity to complete a due diligence examination of the property he intends to lease, and that he found it free of defects and flaws, and acknowledges that it is free of any visible defects and concerns that prevent him from leasing it; as he has completed this examination before leasing it and found it in the same good condition as it is. The client has agreed with the Company with full satisfaction that he has selected it in its legally competent (recognizable) status and agreed to conclude the lease contract according to the terms and conditions included therein.
2- The client acknowledges that he has examined and inspected the property, subject of the lease contract, and ensured that it is in good condition after examination, and that he releases the financier from any liability or responsibility for any kind of defects that may appear in the property, and he acknowledges that he may not recourse against the financier with any defence or claim.
3- The administrative fees amounting to 1% of the financing amount or 5000 SAR, whichever is less.

4- The client shall bear any duties, taxes or any fees imposed on the property for registering the lease contract and recording it according to the law and regulations.
5- The client is obligated to pay the installments according to the dates shown in the payment schedule, which shows the amount and number of installments and payments and their duration.
The client has agreed to divide the term of the lease contract into periods of six months each. After the expiry of each two periods, the installment will be revisited and changed according to the change in SIBOR index, up or down, from the percentage determined upon signing the lease contract, knowing that the Company is not entitled to increase the installments except within the limits of SIBOR Index in addition to the additional costs that the Company may incur, and the governmental taxes and fees and any expenses that may be imposed and charged according to the regulations of any regulatory authority.
7- The installments and all financial obligations arising from the lease contract will be deposited in Amlak International Company's account and the client shall undertake to authorize Amlak International Company to deduct the value of the monthly installment and credit it to Amlak International Company's account.  (In case the client’s salary is transferred.)
8 - The client shall bear all the costs and charges for electricity, water, gas and telephone, and any other services.
9- The annual percentage rate:  it means the distribution of the term cost by using the diminishing balance so that it is distributed pro rata among installments on the basis of the remaining financing amount calculated in accordance with the provisions of Article 81 of the Regulations of The Law on Supervision of Finance Companies. 

 

Default Payment:

10- In case the client fails to pay any due monthly rental installments for ten days from the date of maturity, Amlak International Company is entitled to demand payment of two installments immediately:  The due outstanding installment and the subsequent installment in the same amount as the last due installment and obligating him to pay a fine of (250 SAR) to be spent on charitable activities as per the instructions of the Company's Sharia Supervisory Authority.  Amlak International Company may send him a notice in writing to terminate the lease contract.
11- If the client fails to pay three successive installments or five separate installments or if he breaches any of his obligations arising from the lease contract, he is considered in default of payment. In this case, Amlak International Company may terminate the leasing contract and apply the termination provisions mentioned therein.
12- The client has acknowledged that he is released from any debts or rights of third party that impede the execution of his obligations towards Amlak International Company due to the Ijarah (lease) contract and he undertakes not to be bound subsequently by any obligations that impede the execution of the lease contract or cause a default in payment of his financial obligations towards the Company

 

Maintaining the Safety of the Rented Property:

13- The client agrees not to make any additions, demolitions, constructions or modifications of the installations of water, electricity, telephone, gas, air conditioning, etc., in the rented property. He also undertakes not to change the purpose of use for which he/she has leased the property for any reason whatsoever or change or usufruct the property in any manner other that for which he/she has leased from Amlak Company except after obtaining the prior written consent thereof and in each case separately.
14- The client shall enable Amlak International Company or its representative to access and inspect the leased property on a regular basis to verify that it is in good condition and ensure that the he has not breached the obligations set forth and mentioned in the lease agreement. Amlak International Company shall inform the client by phone (that is, by a voice call or SMS) or via email of the exact time when this inspection will take place, and its duration in addition to the identity of the person who will carry it out.  Amlak International Company shall inspect the leased property to verify its safety and that it is in good condition at least once every three years.
15- The client shall bear and pay all utility charges for electricity, water, gas, telephone and any other utilities when and as they become due. 

 

Property Partial Damage:

16- The client may not cause any damage or destruction to the leased property of any kind, size or form. In case any damage occurs caused by the client, he shall repair any damage or destruction and remove them while paying the rental installments that are due and payable as provided in this agreement. If he fails to do the needed repairs, then Amlak International company is entitled to make a repair request in writing in accordance with the specifications of the leased property, or to do so at the client’s expense. In case any damage is caused by any other party, the client may request repairs of the damages and notify Amlak International Company thereof within ten days from the date of damage. This is considered an authorization from Amlak International Company, and if he does not request the repairs, the client should guarantee that party that caused the damage.
17- If it is established that the leased property is untenantable partially or wholly for any reason not caused by the client then in this case Amlak International Company shall remove the cause thereof in accordance with the provisions of the lease contract. The client must inform the company and follow up on this with it or with the person designated for the purpose of taking the necessary measures to protect the leased property and has the usufruct of it. 

 

Property Whole Damage:

18- In case the leased property is wholly damaged during the lease  term due to omission, fault or negligence of the client, then this is considered a breach of the lease agreement. Amlak International Company has the right to terminate the lease agreement. The client will bear the cost of repairs and all liabilities for the damage and destruction of the leased property as the client guarantees the damages resulting from the loss or destruction of the leased property, including the full value of the leased property if the damage is not fully covered by the insurance coverage, or the client shall partially guarantee the damages caused by the loss of property so as to cover the remaining value of the damages if the damage is partially covered by the insurance coverage.
19-  The client shall indemnify Amlak International company immediately for any compensations payable under the above paragraph. Amlak International Company is entitled to deduct the cost of damage resulting from the loss of the leased property from any security deposits or from any installments or payments made by the client prior to their due dates and to send a request thereto in writing of the full amount of the compensation.
20- The client shall immediately notify Amlak International Company of the occurrence of any incidences that prevent the full tenantability of the leased property.
21- In case the leased property is destroyed or damaged without omission or negligence of the client, the client shall be released of the above obligations for the period following the destruction. 

 

Cost of Services and Maintenance:

22- The company, as the owner of the leased property, shall be responsible for the repair and maintenance of the leased property for the damages that impair the client's use and tenancy of the leased property leased as these damages are limited to the following:
The demolition or destruction of the building for any reason not caused by the client.
- Leakage of water inside the walls or ceilings due to a reason other than the failure of external water pipes or misuse.

- Cracks and falldown in the roof or ceilings or major cracks in the building for any reason not caused by the client.

23- The company shall not be responsible for the repair and maintenance in accordance with paragraph 22 above unless the leased property has been constructed by a developer approved and certified by the company. The approval shall be in writing and should be issued by the competent executive in the company. In case the leased property is constructed and executed by a developer that is not approved by the company, the client shall be a guarantor of repair of any damage that may arise in the leased property.

24- In all cases, the client shall bear all the costs of the operational and periodic maintenance and the rental repairs resulting from the usufruct of the leased property.
25- Moreover, the client also bears the liability and responsibility for any substantial damage resulting from:
- His negligence to take the needed action to repair and make any operational maintenance and this has led to into substantial damage to the building.
- Alterations or additions made to the building that caused substantial damage to the building.

- His misuse or fault that caused subversive acts that caused substantial damage.
26- The company is entitled to, in case of verification of the damage mentioned in paragraph 25 above, terminate the lease agreement and ask the client to vacate the building and pay compensation for all damages caused to the company as a result.

 


 

Prohibition of disposal of property:

27- The client acknowledges that he fully understands that he has no right to make any action or disposal that affects the ownership of the leased property, subject of contract, such as mortgage or sale, etc.
28- The client shall not sublease the leased property except after obtaining the written approval of Amlak International Company of sublease and its duration.
29- Amlak International Company is entitled to hang a banner on the leased property's buildings or facilities with any data that protect its rights under the lease contract, including the name and registration number of the lease contract in case it is registered.

 

Collection and Litigation Charges:

30- All expenses and charges arising from the client's failure and procrastination to pay installments or charges for maintenance or damage removal are considered an integral part of his/her original obligations and he undertakes to pay them to Amlak International Company. 

 

Early Ownership:

The client shall have the right to claim the early ownership of the leased property by buying it after two years from the date of conclusion of the lease agreement as per a separate agreement in which the client shall pay the required amount as determined by Amlak International Company and according to the mechanism referred to in the Financing Statement and Data Annex attached to the lease agreement. In this case, the Company is entitled to:
- The remaining installments without incurring the term cost remaining from the funding amount).
- The term cost for the three months following the early repayment.
- Any amount due and payable under the lease agreement on the early repayment date, which the client has not yet paid.
- All expenses and charges incurred by the company due to the lease contract, for the remaining period of the lease contract. The early repayment agreement will specify the early repayment details of the above amounts.
32- In case the client intends to make early repayment during the prohibition period (that is, prior to the passage of two years from the date of conclusion of the lease agreement), the Company shall, at its sole discretion, accept or reject the early ownership request.
33- The lease agreement shall end by the client's early ownership by the client and both the client and the company shall be, pursuant thereto, released from any obligations arising from the lease contract.

 

Inclusion in Credit Records:

34- The Company may include and enter the client’s credit data in credit records inside the Kingdom and abroad, including his/her breach of its financial obligations under the lease contract, in accordance with the credit registry system.

 

 

Client's Cooperative Insurance:

35- The company shall obtain cooperative insurance to cover the risks of the contract in the event of death or total disability, May Allah Almighty forbid, from a cooperative insurance company, but the insurance will be canceled in the following cases:
- If the information provided by the client in any document is incorrect or incomplete.
- In case the cause of death is suicide or murder of the client as a result of a criminal or terrorist act or any similar situation to which the insurance terms and conditions approved by the company do not apply.
- In case the cause of death is a chronic illness that the client has suffered from before obtaining the mortgage.
- The failure of the heirs to provide the minimum required documents (death certificate / medical report / police report).
- The death has occurred after the client has stopped paying three consecutive installments or five separate installments.
- Any other exceptions determined by the insurance company.

 

Cooperative insurance on the property:

36- The Company will provide the cooperative insurance on the property covering fire accidents and the risk of damage to the real estate property, wholly or partially, during the term of the lease contract in accordance with the provisions of the Cooperative Insurance Companies Control Law, its Executive Regulations and the instructions issued by the Corporation pursuant to Article 5 of the Regulations of the Law of Real Estate Finance.

 

Termination of Lease Agreement:

37- The Company shall have the right to terminate the lease contract if the client breaches any of its obligations under the lease agreement, including but not limited to any of the following cases:
-  If the client fails to pay three successive installments or five separate installments or if he breaches any of his obligations arising from the lease contract, he is considered in default of payment. In this case, Amlak International Company may terminate the leasing contract.
- In case the company can not collect the agreed-upon rental installments from the client in accordance with the provisions of the contract for any reason.
- In case the client goes bankrupt or insolvent or his business is placed under liquidation.
- In case he violates, fails to comply with or delays the payment of any of his financial obligations and undertakings under the lease contract.
- In case at any time the data or documents that he has provided to the company are incorrect in case this affects the obligations mentioned in the lease contract.
- In case he fails to pay any installment due to the Company under the terms of the lease contract.
- In case the client intends to terminate the lease contract to be replaced by another tenant and the company agreed to do so, but in case it does not agree, its decision should be reasoned.
- If the client or any guarantor becomes at any time unable to pay his financial obligations or perform any other due obligations if such obligation is mentioned in any other agreement that the client or any guarantor or signatory has concluded, including the agreements to obtain bank facilities or personal finances from the Company or from any other financial institution.

 

 

Secondly: The Terms and Conditions of Ijara mawsufah fil zimmah, that is, forward lease

 

General Conditions:

All the terms and conditions mentioned in the lease (Ijara) product apply to the product of the Ijara mawsufah fil zimmah, that is, forward lease in addition to the following: 

 

Deposit:

1- The deposit will be paid  by the client to Amlak International Company starting from the date of conclusion of the contract of Ijara mawsufah fi zimmah (forward lease which involves the sale of a clearly specified underlying asset, which is currently being produced or constructed, for a future delivery)  until he receives the real estate property from Amlak for the purpose of its usufruct.
2- After the client receives the real estate property, the deposit will be converted into an advance lease payment, which will be amortized in the payment of part of the first rental period. If the client changes his mind and decides not to go on in the forward lease contract after it is concluded (explicitly or implicitly or delays the payment of monthly installments before or after the delivery of the property) then the company is entitled to the full amount of the paid deposit and the client is not entitled to claim it.

 

Delivery of real estate property:

3- Amlak International Company is keen to deliver the real estate property specified to the client according to the description and date mentioned in the forward lease agreement.

 

Early Delivery:

4- Amlak International Company may hand over the real estate property before the date specified in the forward lease agreement in case it is ready for delivery; and the actual early delivery date is the commencement of rental maturity.
5- Starting from the effective date of the actual or presumptive early delivery, the forward lease contract will be binding. The deposit amount paid by the client shall be calculated as an advance rental payment, which shall be paid equally for the payment of part of the first rental period.

 

Late Delivery:

6- Amlak Company may postpone the delivery of the property from the date stipulated in the forward lease contract for a period not exceeding one year.
7- The client shall, in case of delayed delivery, continue to pay the monthly installments on time and in the same amounts specified in the repayment schedule. The client's suspension of payment of the monthly installments on time shall give Amlak Company the right to terminate the forward lease contract.
8- If the postponement period lasts for more than one year, the procedures stipulated in case of Force Majeure shall apply.
9- In case the client makes modifications to the real estate property without obtaining the prior written approval of Amlak Company, and these modifications have led to the delay in completing and implementing the works of the real estate property, the client shall bear any consequences or liabilities for this while he continues to pay the rental installments to Amlak Company that is entitled to terminate the forward lease contract and implement the provisions mentioned therein.

 

The Property Condition Upon Delivery:

10- The construction of the property may not be partially completed on the date of delivery, and the client acknowledges his consent thereto and that he has waived any claims against Amlak Company in this regard and has no right to refrain from receiving it or to hold some installments due to this.


*These terms and conditions are clarifying terms and do not affect the terms and conditions of the (lease (Ijara) contract / forward lease agreement) signed by the company and the client. 

 

 

Thirdly: Terms and Conditions of Financing in the Form of Lease of Land under Development

 

General Conditions:

1- The client has acknowledged that he has had the opportunity to complete a due diligence examination of the land he intends to lease, and that he found it free of defects and flaws and acknowledges that it is free of any visible defects and concerns that prevent him from leasing it; as he has completed this examination before leasing it and found it in the same good condition as it is. The client has agreed with the Company with full satisfaction that he has selected it in its legally competent (recognizable) status and agreed to conclude the lease contract according to the terms and conditions included therein.
2-The client acknowledges that he has examined the land, subject of the lease contract, and he has ensured that it is in good condition after examination, and that he releases the financier from any liability or responsibility for any kind of defects that may appear in the property, and he acknowledges that he may not recourse against the financier with any defence or claim.
3- The administrative fees amounting to 1% of the financing amount or 5000 SAR, whichever is less.

4- The client shall bear any duties, taxes or any fees imposed on the land for registering the lease contract and recording it according to the law and regulations.
5- The client is obligated to pay the installments according to the dates shown in the payment schedule, which shows the amount and number of installments and payments and their duration.
6- The client has agreed to divide the term of the lease contract into periods of six months each. After the expiry of each two periods, the installment will be revisited and changed according to the change in the SIBOR index, up or down, of the percentage determined upon signing the lease contract, knowing that the Company is not entitled to increase the installments except within the limits of SIBOR Index, in addition to the additional costs that the Company may incur, and the governmental taxes and fees and any expenses that may be imposed and charged according to the regulations of any regulatory authority.
7- The installments and all financial obligations arising from the lease contract will be deposited in Amlak International Company's account and the client shall undertake to authorize Amlak International Company to deduct the value of the monthly installment and credit it to Amlak International Company's account. (In case the client's salary is transferred.)
8- The client shall bear all the costs and charges for electricity, water, gas and telephone, and any other services.
9- The annual percentage rate:  it means the distribution of the term cost by using the diminishing balance so that it is distributed pro rata among installments on the basis of the remaining financing amount calculated in accordance with the provisions of Article 81 of the Regulations of The Law on Supervision of Finance Companies.

 

Default Payment:

10- In case the client fails to pay any due monthly rental installments for ten days from the date of maturity, Amlak International Company is entitled to demand payment of two installments immediately:  The due outstanding installment and the subsequent installment in the same amount as the last due installment and obligating him to pay a fine of (250 SAR) to be spent on charitable activities as per the instructions of the Company's Sharia Supervisory Authority. 11- If the client fails to pay three successive installments or five separate installments or if he breaches any of his obligations arising from the lease contract, he is considered in default of payment. In this case, Amlak International Company may terminate the leasing contract and apply the termination provisions mentioned therein.
12- The client has acknowledged that he is released from any financial obligations that might affect his ability to pay the installments of the lease agreement and he shall notify the Company immediately of any substantial change in his financial obligations. In case he violates this obligation the Company may take all termination measures mentioned in the contract at once.

 

Maintaining the Safety of the Land:

13- The client agrees not to make any construction, modification, etc. on the land except after obtaining the prior written consent of Amlak Company.
14- The client shall enable Amlak International Company or its representative to access and inspect the leased property on a regular basis to verify that it is in good condition and ensure that the he has not breached the obligations set forth and mentioned  in the lease agreement. Amlak International Company shall inform the client  by phone (i.e. by a voice call or SMS) or via email, of the exact time when this inspection will take place, and its duration. Amlak International Company shall inspect the land to verify its safety and that it is in good condition at least once every three years.

 

Land Partial Damage :

15- The client may not cause any damage or destruction to the land of any kind, size or form. In  case any damage occurs caused by the client, such as the buildings and contructions, etc. that the client establishes and that will cause the depreciation of the land, then the client shall repair any damage or destruction and remove them. If he/ she fails to do the needed repairs, then Amlak International company is entitled to make these repairs at the client’s expense or request him to make the repair request in writing in accordance with the specifications of the leased property, or .

 

 

Land Whole Damage:

16- In the event of complete damage of the leased land during the lease (Ijara) term due to omission, fault or negligence of the client, then the lease agreement is terminated. The client will bear the cost of repairs and all liabilities for the damage and destruction of the leased land as the client guarantees the damages resulting from the loss or destruction of the leased land including the full value of the leased land if the damage is not fully covered by the insurance coverage, or the client shall partially ensure the damages caused by the loss of the land so as to cover the remaining value of the damages if the damage is partially covered by the insurance coverage.

 
Prohibition of disposal of Ownership:

17- The client acknowledges that he fully understands that he has no right to make any action or disposal that affects the ownership of the leased land, subject of contract, such as mortgage or sale, etc. till the land ownership is transfered to him according to the provisions of this agreement.
18- The client shall not assign the lease agreement nor sublease the land except after obtaining the approval of Amlak International Company in writing of sublease and its duration.
19- Amlak International Company is entitled to hang on the leased land any data that protect its rights under the lease contract, including the name and registration number of the lease contract in case it is is registered.

 

Collection and Litigation Charges:

20- All expenses and charges arising from the client’s failure and procrastination to pay installments or charges for maintenance or damage removal costs are considered an integral part of his/her original obligations and undertakes to pay them to Amlak International.

 

Early Ownership:

21- The client shall have the right to claim the early ownership of the leased land by buying it after two years from the date of conclusion of the lease agreement as per a separate agreement which specifies the details of the required due amount and payments that he shall pay in case of early ownership as per the principles mentioned in the Financing Statement and Data Annex attached to the lease agreement. In this case, the Company is entitled to:
-   Remaining installments without incurring the term cost remaining from the funding amount.)
-  The term cost for the three months following the early repayment.
- Any amount due and payable under the lease agreement on the early repayment date, which the client has not yet paid.
- All expenses and charges incurred by the company due to the lease contract, for the remaining period of the lease contract. The early repayment agreement will specify the early repayment details of the above amounts.
22- In case the client intends to make early repayment during the prohibition period (that is, prior to the passage of two years from the date of conclusion of the lease agreement), the Company shall, at its sole discretion, accept or reject the early ownership request.
23- The lease agreement shall end by the client's early ownership and both the client and the company shall be, pursuant thereto, released from any obligations arising from the lease contract.

 

Inclusion in Credit Records:

24- The Company may include and enter client’s credit data in credit records inside the Kingdom and abroad, including his/her breach of its financial obligations under the lease (Ijara) contract, in accordance with the credit registry systems.

 

Client's Cooperative Insurance:

25- The company shall obtain cooperative insurance to cover the risks of the contract in the event of death or total disability (May Allah Almighty forbid!) from a cooperative insurance company, but the insurance will be canceled in the following cases:
- If the information provided by the client on any document is incorrect or incomplete.
- In case the cause of death is suicide or murder of the client as a result of a criminal or terrorist act or any similar situation to which the insurance terms and conditions approved by the company do not apply.
- In case the cause of death is a chronic illness that the client suffered from before obtaining the mortgage.
- The failure of the heirs to provide the minimum required documents (death certificate / medical report / police report). - The death has occurred after the client has stopped paying three consecutive installments or five separate installments.
- Any other exceptions determined by the insurance company.

Termination of Lease Agreement:

26- The Company shall have the right to terminate the lease agreement if the client breaches any of its obligations under the lease agreement, including but not limited to any of the following cases:
- If the client fails to pay three successive installments or five separate installments or if he breaches any of his obligations arising from the lease agreement, he is considered in default of payment. In this case, Amlak International Company may terminate the leasing contract.
- In case the company can not collect the agreed-upon rental installments by the client in accordance with the provisions of the contract for any reason.
- In case the client goes bankrupt or insolvent or his business is placed under liquidation.
- In case he violates, fails to comply with or delays the payment of any of his obligations and undertakings under the lease contract.
- In case at any time the data or documents that he has provided to the company are incorrect, if this affects the obligations mentioned in the lease contract.
- In case he fails to pay any installment due to the Company under the terms of the lease agreement.
- In case the client intends to terminate the lease agreement to be replaced by another tenant and the company agreed to do so, and in case it does not agree, its decision should be reasoned.
- If the client or any guarantor becomes at any time unable to pay his financial obligations or perform any other due obligations if such obligation is mentioned in any other agreement that the client or any guarantor or signatory has concluded, including the agreements to obtain bank facilities or personal finances from the Company or from any other financial institution.

 

Handling client's complaints:

Amlak International Company has set a mechanism for its clients and clients to submit their suggestions, comments or when they are dissatisfied with the service provided thereto and intend to file a complaint. They will be followed up on by the Customer Care Center, and we are pleased to summarize it in the following steps:

  1. Kindly contact Amlak Phone, during official working hours and call: 525620029
  2. Fill in the form on the following link: http://www.amlakint.com/page/CustomerFeedback
  3. The Email of Amlak International Company: info@amlakint.com
  4. Instant Live Chat via Amlak International Company's website http://www.amlakint.com
  5. Visit one of our branches in the Kingdom of Saudi Arabia (Riyadh, Jeddah, Sharqia) during official working hours - to know the locations of the branches: You can contact us through our social networking pages: http://www.amlakint.com/page/ContactUs)


These terms and conditions are clarifying terms and conditions and do not affect the terms of lease (Ijara) contract to be signed by the company and the client.