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Wafi Program is one of the key regulatory initiatives in Saudi Arabia’s real estate sector. It oversees the sale or lease of off-plan properties, aiming to protect buyers’ rights and ensure developers comply with financial and regulatory controls. No developer is allowed to sell or lease off-plan units without obtaining the necessary approvals from Wafi, under the supervision of the Real Estate General Authority.
In this context, the role of the certified accountant is critical to ensure financial transparency, protect buyers’ funds, and verify the developer’s adherence to Wafi’s financial regulations. Having a certified accountant is one of the essential requirements for approval of off-plan projects.
Role of the Certified Accountant in Wafi Projects:
The certified accountant performs key responsibilities that guarantee financial oversight and accelerate project approval by the Wafi committee, including:
Accounting Supervision of the Project:
Monitoring the project’s financial status from inception to completion, ensuring all financial operations comply with the regulatory framework.
Escrow Account Monitoring:
Verifying that all funds collected from buyers are deposited into the project’s designated escrow account and used solely for project-related activities.
Regular Reporting to Wafi:
Preparing and submitting periodic financial reports detailing project status, completion percentages, cash flows, and adherence to the approved plan.
Review of Payment Documents and Comparison with Progress:
Ensuring that all expenses correspond to actual work performed and aligning payments with the project’s actual progress before approval.
Approval of Disbursement Documents:
Supervising the authorization or rejection of payments in accordance with financial regulations to guarantee proper and transparent fund management.
Why Choose Abdullah AlHamdan CPA’s for Wafi Accounting Supervision Service for Off-Plan Sales Projects?
We have specialized expertise in managing off-plan projects under Wafi, providing precise and documented financial supervision that ensures:
Relying on us in Wafi Program Services gets you a chance to work with a certified accounting team. The team who understands regulatory requirements thoroughly and manages your project’s financial aspects with confidence and professionalism.
The requirements include:
- A valid commercial registration that permits real estate development
- Chamber of Commerce membership certificate
- A copy of the credit report issued by a licensed credit bureau
- A copy of the agreement between the developer and the landowner or usufruct owner
- A copy of the agreement between the main developer and the sub-developer (if applicable)
- Approved architectural designs and engineering plans
- A copy of the contract with the consulting office
- A copy of the contract with the certified public accountant
- A feasibility study for the project prepared by a consulting office
- A commitment to begin construction within six (6) months from the license issuance date
- A draft sales contract with specific delivery dates
- An escrow account agreement with a licensed bank in the Kingdom
- A letter from the property owner approving annotation on the property deed, restricting any disposal of the property until all development works are completed—unless the property is registered under a real estate registry (Ayni registration)
Payments are transferred to the project’s escrow account based on the engineering percentage of completion and according to the payment schedule stated in the off-plan sales contract.
No, the investor or developer cannot directly control the project funds deposited in the Wafi escrow account.
However, withdrawals can be made under specific regulations and only after approval from the supervising certified public accountant and the relevant authorities.
