The Shura Council discussed the issue of compensation for deducted property and increasing the regular planning percentage in their session on Monday. They also worked on legalizing the compensation in a regular manner. After reviewing the interventions of the council members, they decided to amend one of the paragraphs of the Roads and Buildings Regulations. They added a text stating that landowners cannot receive compensation for what is allocated to serve their land subject to division, such as streets, roads, gardens, and public squares, if it does not exceed 33% of the entire area of the divided land. Compensation will be made for what exceeds this percentage, or what exceeds what is required for the allocation to serve the land. The competent municipality will estimate the price per square meter of the land before its division. However, there are cases where compensation does not apply, including when the landowner requests to increase the width of the streets of the plan, as required by the planning aspects and the network of streets of the general plan. These changes may lead to exceeding the 33% percentage. Compensation also does not apply to natural areas that are not subject to planning, such as valleys, streams, mountains, and rugged areas. There are also cases where areas are allocated in excess of 33% to meet the needs of residents in terms of gardens, open areas, and mosques. However, compensation will not apply if the landowner waives a percentage exceeding 33% when their land plan is approved by the competent authority. This is according to what is stipulated in Paragraph (2) of Royal Order No. (4/B/11736) dated 9/16/1421 AH.
The session concluded, after listening to the interventions of the members of the council, to amend one of the paragraphs of the Roads and Buildings Regulations, and add a text to its inability to read: “The landowner shall not be compensated for what is allocated to serve his land subject to division from what is deducted from it, when dividing streets, roads, gardens, and public squares, if it does not exceed what has been allocated for it.” (33%) of the entire area of the divided land, and compensation for what exceeds this percentage, or what exceeds what is required for the allocation to serve the land, and compensation is made from the competent municipality at the estimated price per square meter of the land before its division.
The compensation does not include a number of cases, including the request of the owner of the plan – or his legal representative – from the competent authority to increase the width of the streets of the plan, as required by the planning aspects and the network of streets of the general plan, and this led to exceeding the percentage (33%), and what is considered land Natural areas that are not subject to planning, or cannot be planned, such as valleys, streams, mountains, rugged areas, and the like, whether they are within or exceed 33%.
Among the cases that are not covered by the compensation, areas that are allocated in excess of (33%) to meet the needs of the residents of the residential plan in terms of gardens, open areas and mosques according to the population density in the plan and the planning standards approved by the competent authority, and what the owner of the plan – or his legal representative – waives. – From a percentage exceeding (33%) when his land plan is approved by the competent authority and he acknowledges not to claim compensation for it according to what was stipulated in Paragraph (2) of Royal Order No. (4 / B / 11736) dated 9/16/1421 AH.
In summary, the Shura Council has taken steps to address the issue of property compensation in cases where land is divided for public use. While certain exceptions apply, the council has amended regulations to limit compensation to 33% of the property’s value, with additional compensation to be paid by the municipality. While this may not satisfy all parties, it represents progress in the ongoing effort to balance the needs of development with the rights of property owners. We will continue to monitor this issue and report on any further developments.