Article 21 of the Saudi Off-Plan Real Estate Sales and Leasing Law

This article specifies the body that hears violations and imposes fines, and the route to object to its decisions.

(1) The committee and its jurisdiction:

• It hears violations of the provisions of the Law and the Regulations, other than the violations in Article 24, which are the more serious acts punishable by imprisonment of up to 5 years or a fine of up to SAR 10 million or both, such as selling without a license and embezzling project funds.
• It imposes a fine not exceeding SAR 1 million.
• One committee or more is formed by decision of the official for 3 years, renewable, from members no fewer than 3.
• The decision forming it determines its chair, who must be among those specialized in Sharia or the laws.
• Its decisions are issued by majority, are reasoned, and are approved by the official.

(2) Rules of work: The Implementing Regulations set the committee's rules of work, procedures and members' remuneration.

(3) Objection: The committee's decisions may be objected to before the Administrative Court within 60 days of the date of notification of the decision. Attention to this period is important for anyone who wants to object.

The article is linked to Article 20, which allows the competent authority to take the necessary measures on violation, including suspending the project, and to Article 22, which sets the inspectors responsible for catching, establishing and investigating violations.

Anyone against whom a decision of the committee has been issued and who wants to object to it would do well to consult a lawyer who specializes in administrative or real estate cases before the period expires.