Real Estate Development

Development Contracting Strategy (Project Setup)

High-level strategic advisory at the project inception stage for real estate developers. We help clients devise the optimal contracting and procurement strategy for their development projects – whether it’s selecting the right contract model (traditional design-bid-build, design-build, EPCM, etc.), packaging the project into phases or trade packages, or formulating tender and bid evaluation procedures. Our advice is grounded in both legal and commercial insight: we consider timeline, budget, risk tolerance, and market conditions to recommend a strategy that balances risk and reward. This early planning ensures the developer sets up the project with a solid foundation, reducing downstream legal friction and aligning the contracts with the project’s delivery goals. 

Project Contract Drafting & Negotiation

End-to-end drafting and negotiation of all contracts needed for a successful real estate development. Aljamhor Law prepares bespoke or standard-form construction contracts (e.g. for contractors, design consultants, project managers) tailored to the specific development, as well as ancillary agreements like consultancy contracts, supplier agreements, sales and lease contracts for units, and property management agreements. Our team negotiates these contracts on the client’s behalf, securing terms that protect the developer’s interests – such as clear deliverables, quality standards, timeline guarantees, change order mechanisms, and remedies for default. With our sector-focused expertise, we produce contract documentation that not only manages legal risk but also reflects practical project requirements, paving the way for smoother execution. 

Real Estate Dispute Resolution (Negotiation → Mediation → Litigation/Arbitration)

Specialized dispute resolution services for real estate and construction disputes, recognizing that these often involve time-sensitive and high-value investments. We represent developers (and other stakeholders) in resolving issues such as contested change orders, project delays, claims for extensions of time, contractor defaults and terminations, cost overruns, construction defects, warranty claims post-handover, and sales & leasing conflicts (e.g. buyer default or rent disputes). Our approach is to escalate in stages: first, direct negotiation or facilitated mediation to preserve business relationships when possible, then, if needed, pursuing arbitration or litigation with a robust strategy. We draw on our decades of litigation success in Saudi courts and arbitral tribunals to vigorously protect our client’s position. By offering a tiered approach to dispute resolution, we aim to achieve favorable outcomes efficiently – whether through a settlement that keeps the project on track or through winning a decisive award in arbitration/court when litigation is unavoidable. 

Investor & JV Structuring (Co-Development & Capital Protection)

Legal structuring for joint ventures and investor arrangements in real estate projects. Many developments involve partnerships between land owners, developers, and financial investors; we ensure these relationships are structured to align incentives and protect our client’s capital. Our services include drafting joint venture agreements, shareholder agreements, and co-development arrangements that clearly define each party’s contributions (land, capital, expertise), profit-sharing, decision-making control, and exit mechanisms. For foreign or institutional investors, we create structures that secure their investment (through rights like preferred returns, step-in rights, or security interests on the project assets). We also navigate Saudi legal requirements for foreign investment or JV approvals. The result is a robust JV framework that provides clarity and confidence to all parties, enabling the development to proceed with a strong governance structure and reduced risk of partner disputes. 

Real Estate Investment Fund Advisory

Expert advice on the formation and operation of real estate investment funds and vehicles. For clients aiming to pool capital for property development or acquisition, we provide legal guidance on setting up Real Estate Investment Trusts (REITs) or private real estate funds compliant with Saudi regulations. Our team assists with fund structuring (Shari’ah-compliant structures if needed), preparation of offering documents, and securing regulatory approvals from entities like Capital Market Authority (CMA) for public funds. We also draft fund management agreements and subscription documents, ensuring that the fund’s terms protect investors and sponsors alike (addressing fee arrangements, governance, and exit provisions). By leveraging our corporate and finance know-how alongside real estate insight, we help clients create investment platforms to mobilize capital for real estate projects, while meeting all legal and fiduciary standards. 

Financing (Real Estate Project Finance & Lending)

Guidance through the financing phase of real estate developments, from construction loans to end-buyer financing structures. We represent developers in negotiating loan agreements with banks or financial institutions to fund construction, securing terms that accommodate the project’s cash flow and timeline. This includes advising on interest rates, drawdown schedules, covenants, and security packages (mortgages on the project land, assignment of sales proceeds, etc.). For large-scale projects, we also advise on alternative financing such as mezzanine debt, off-plan sales escrow arrangements, or government subsidy programs. Our understanding of both lender requirements and developer needs allows us to bridge gaps and close financing deals efficiently. Additionally, we can structure end-user financing schemes (such as facilitating homebuyer mortgage programs or rent-to-own arrangements) in collaboration with banks, to support sales strategy. Through meticulous attention to financing documents and proactive negotiations, we ensure our developer clients obtain the necessary funds while safeguarding their development’s viability and assets.