Terms of Use

Madak — the digital solution to manage and track real estate development projects

This document is a binding legal agreement between Madak Information Technology Company and the user or the owner. It governs the use of the Madak app and all partial ownership of real estate offered through it.

Upon electronic approval or completion of the payment process through the application, the user acknowledges his full and unconditional consent to all of the provisions of these terms and conditions.

Article 1: Definitions

For the purposes of these Terms:

Madak: Madak Information Technology Company as the managing and operating body.

Application: Madak electronic application with all its systems and services.

User or owner: Any natural or legal person who pays for the purpose of partial ownership of a property through the application.

Real estate: the real estate asset specified in each ownership opportunity offered through the app.

Ownership rate: the percentage registered in the name of the owner in the real estate deed issued by the Land Registry in accordance with the applicable regulations.

Opportunity Summary File: The document containing the details of the property, costs, fees, management and operation mechanism, which is available within each opportunity's documents within the app.

Article 2: The nature of the model

  1. The Madak model is based on the actual partial ownership of the property, so that the percentage of ownership is recorded in the name of the owner in the real estate deed issued by the Land Registry in accordance with the applicable regulations.

  2. The payment process does not represent the purchase of financial units or investment securities, but actual real estate ownership of a percentage of a specific asset.

  3. The returns generated by real estate are actual rental returns resulting from the operation of a owned asset, rather than guaranteed returns or financial interest.

  4. This model does not result in any riba-based loans or financing obligations for the owner. It is based on direct ownership of the asset and the resulting benefits.

Article 3: The value of the real estate opportunity

  1. The amount announced for each ownership opportunity does not represent only the value of the abstract acquisition of the property.

  2. The amount includes all costs, fees and services associated with the acquisition, registration, administration and initial operation, including statutory fees and taxes if any.

  3. Details of fees and costs are detailed in the opportunity summary file attached to each opportunity's documents within the application. The owner's access to it is an integral part of his approval of the acquisition process.

  4. The owner acknowledges that the total value of the offering includes all costs associated with the property and not the abstract purchase price of the asset.

Article 4: Management and Operation

  1. Madak undertakes the full management of the property on behalf of all owners.

  2. Management includes leasing, collection, maintenance, contracting, management of the owners' union, if any, and any work necessary to preserve the asset and maximize its benefit.

  3. Madak has the right to assign third parties or contract with specialized parties to perform some or all management and operation tasks at any time, without the need for the consent of the owners, while remaining responsible for general supervision in accordance with the applicable regulations.

  4. The owner is committed not to interfere in individual operational decisions.

Article 5: Revenues and Costs

  1. All revenues resulting from the operation of the property are transferred to the approved accounts.

  2. Before distributing returns, all necessary expenses and costs are deducted, including but not limited to:

    Regular or emergency maintenance
    Renovations or improvements
    Owners union fees
    Government fees
    Taxes or zakat that are legally due
    Any statutory obligations payable
    Management and operating fees

  3. Madak has the right to withdraw or withhold additional amounts of revenues or returns when needed to cover any obligations related to the property.

Article 6: Distribution of Revenues

  1. The net revenues resulting from the operation of the property are distributed after all costs and liabilities are deducted.

  2. Distributions do not represent a guaranteed or fixed return.

  3. The value of returns may vary depending on occupancy and market conditions.

Article 7: Zakat and Legal Obligations

  1. Every owner is obliged to pay the due zakat on his share in accordance with the applicable regulations and instructions.

  2. If a property results in zakat or a statutory financial obligation at the asset level, it has the right to deduct it from the returns before distribution.

  3. The ownership model is subject to independent legal review. The owner acknowledges that the basis of the relationship is real ownership of a real estate asset and the resulting benefits.

Article 8: Irrevocability after ownership

  1. Once the payment is completed through the app and the purchase is confirmed in the real estate opportunity, the acquisition process becomes final, binding and productive for all its statutory effects.

  2. It is not permissible to cancel the purchase in the opportunity through the app or request a refund after confirming the transaction.

  3. Payment is not a reservation or a revocable subscription.

Article 9: Exits

  1. The owner may sell his percentage through the exit window within the application in accordance with the approved regulations.

  2. Exits are subject to supply and demand mechanisms and approved regulation.

  3. Madak meets a maximum of 2.5% of the share value at the time of sale in exchange for managing and executing the exit process.

  4. Madak has no obligation to ensure that the sale is executed within a specific period.

Article 10: Risks

  1. The owner acknowledges that real estate ownership involves market and operational risks.

  2. MADAK assumes no responsibility for market fluctuations or impairment.

  3. The owner bears the risk of his decision to own property.

Article 11: Electronic Consent

Electronic consent through the application is a binding and productive signature for all its statutory effects.

Article 12: Amendments

  1. Madak has the right to amend or update these terms and conditions at any time in accordance with the applicable rules, regulations and regulatory instructions.

  2. The amendment does not require prior approval from the owners.

  3. The amendment shall be effective from the date of its publication through the application or the electronic notification of it to users.

  4. Continued use of the application or retention of ownership after the amendments take effect is an acceptance of them.

Article 13: Law and Jurisdiction

These conditions are subject to the regulations of the Kingdom of Saudi Arabia. The competent judicial authorities within the city of Riyadh are competent to consider any dispute arising from them.

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