Sorting real estate units: a comprehensive guide

In view of the accelerated urban growth and the growing demand for diversified housing, the need has become urgent to organize joint real estate ownership, and this is where the importance of the sorting service of real estate units comes in. This service is one of the most important tools that contribute to the development of the real estate market, as it enables the owner to divide the property into independent units (residential, commercial, or office), each with a separate Title Deed, which opens up new horizons for investment, sale, and leasing.

What is the sorting of real estate units

Sorting of real estate units is an organizational procedure according to which an existing or under construction building is divided into several independent units, each of which is granted an independent title deed, clarifying the common parts between the owners, such as corridors, elevators, parking lots, and others.

The main objectives of sorting units

1. Enable the sale or leasing of each unit separately.

2. Regulation of the relationship between the co-owners of the property.

3. Raising the efficiency of land and building use.

4. Encourage investment in multi-use real estate.

5. Facilitate mortgage financing, where each unit becomes mortgagable or bank financing.

Types of real estate that can be sorted

- Residential buildings (villas – apartments).

- Commercial buildings (offices – shops).

- Complexes or towers are multi-use.

- Villas with attached apartments.

- Investment buildings.

Entities concerned with the sorting of units in Saudi Arabia

- The General Authority of real estate.

- Ministry of municipal and Rural Affairs and housing.

- Municipalities and District Secretariats.

- Judicial authorities (to notarize the sorted instruments).

- Accredited engineering consulting offices for the preparation of plans.

Steps to request sorting of real estate units

1. Prepare an approved engineering plan showing the number of units, their areas, uses, and locations.

2. Submit the application electronically via the "sorting of real estate units" platform (https://subdivision.rega.gov.sa).

3. Attach the required documents:

- Title deed.

- National ID or commercial registration.

- Building permit (if any).

- Cadastral report or certificate of completion of construction (for existing real estate).

4. Review by the competent authorities and approval of the scheme.

5. Issuance of sorting documents and separate title deeds.

Basic conditions for accepting screening

- The ownership must be correct, clear and free from disputes.

- Meeting all the requirements of construction and organization.

- Availability of a regular building license.

- Compatibility of uses with urban planning systems.

- The presence of common manageable services (such as electricity, water, sewage).

Benefits of sorting real estate units

For the investor:

- Easy to sell or finance each unit.

- Increase the return on investment by dividing the property into separately rentable units.

For the owner:

- Freedom of action in each unit individually.

- The possibility of inheriting each unit independently.

For the buyer:

- Buy a unit with an area and a price that suits his needs.

- Clarity of ownership and identification of joint responsibilities.

For the real estate market:

- Stimulate supply and increase residential and commercial options.

- Regulation of the legal relationship between co-owners of one property.

The difference between the sorting of units and the division of territory

- Sorting of units: it is carried out within one building, and it concerns vertical units (such as apartments and offices).

- Land division: it is carried out on a land space to divide it into independent plots horizontally.

The role of engineering offices in sorting

Accredited consulting offices play a pivotal role in the sorting of units, as they assume:

- Preparation and lifting of technical schemes.

- Determination of common parts and subordinate rights.

- Providing legal and technical advice to the owner.

- Follow-up with the concerned authorities until the issuance of sukuk.

Possible challenges in sorting units

- Complicate the procedures if the paperwork is not completed.

- The presence of structural irregularities in the building.

- Difficulties in understanding between co-owners.

- Lack of infrastructure readiness (in some neighborhoods).

Conclusion

The sorting of real estate units represents a strategic step to organize the real estate market in the Kingdom and achieve Vision 2030, which aims to increase the percentage of ownership, raise the quality of life, and stimulate investments. Whether you are a property owner you want to invest in, or a real estate developer looking for regulatory solutions, sorting is the perfect tool to ensure transparency and effectiveness in managing real estate assets.