Article 23 of the Saudi Off-Plan Real Estate Sales and Leasing Law
المادة 23 من نظام بيع وتأجير مشروعات عقارية على الخارطة
The article requires the official to issue a table classifying violations and their penalties within the Article 21 limit, except Article 24 violations, taking into account the seriousness and circumstances of each violation.
Official text (Arabic)
This article has not been amended since the law was issued.
يُصدر المسؤول -بقرار منه- جدول تصنيف للمخالفات -عدا المخالفات المنصوص عليها في المادة (الرابعة والعشرين) من النظام- وتحديدًا للعقوبات ضمن حدها المنصوص عليه في المادة (الحادية والعشرين) من النظام، يراعى فيه طبيعة كل مخالفة وجسامتها، والظروف المشددة والمخففة لها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 23 explained in plain English
This article shows how the penalty for each violation is set in an organized way.
The content of the rule:
- The official (the head of the competent authority) issues by decision of his own a table classifying violations.
- The table sets the penalties within the limit provided in Article 21, that is, a fine not exceeding SAR 1 million imposed by the violations committee.
- The violations provided for in Article 24 are excluded from the table; these are acts punishable by imprisonment of up to 5 years or a fine of up to SAR 10 million or both, such as engaging in the activity without a license, submitting incorrect documents or embezzling funds.
Classification criteria: The table takes into account:
- The nature and seriousness of each violation.
- The aggravating and mitigating circumstances of it.
The article therefore does not itself set the amount of the fine for each violation, but leaves that to the table issued by the official, who is bound to stay within the upper limit and to take the stated criteria into account. To find the fine for a specific violation, one should therefore refer to that table.
This article follows Article 22, which sets the inspectors responsible for catching violations, establishing them and investigating them.
A developer facing a violation who wants to know its classification and the effect of mitigating circumstances on it can consult a lawyer who specializes in real estate cases.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 23 of the Saudi Off-Plan Real Estate Sales and Leasing Law
Where do I find the amount of the fine for an off-plan sales violation?
In the table classifying violations that the official issues by decision of his own, within the limit provided in Article 21, which is SAR 1 million.
Does the violations table include the offense of selling without a license?
No. The violations provided for in Article 24 are excluded from the table.
On what basis are violations classified?
The table takes into account the nature and seriousness of each violation and its aggravating and mitigating circumstances.
Articles this article refers to
- Article 24
The article punishes with up to 5 years' imprisonment or a fine of up to SAR 10 million, or both, selling without a license, phantom projects, embezzling funds, failing to deposit them in escrow and similar acts.
دون إخلال بأي عقوبة أشد ينص عليها نظام آخر، يعاقب بالسجن لمدة لا تزيد على (خمس) سنوات أو بغرامة لا تزيد على (عشرة ملايين) ريال، أو بهما معًا: 1- كل من زاول نشاط
- Article 21
The article creates a committee that hears violations of the Law other than the Article 24 offenses and imposes fines up to SAR 1 million; its decisions may be objected to before the Administrative Court within 60 days.
1- يتولى النظر في مخالفات أحكام النظام واللائحة -عدا المخالفات الواردة في المادة (الرابعة والعشرين) منه- وإيقاع عقوبة الغرامة بما لا يتجاوز (مليون) ريال؛ لجنةٌ
More articles on Off-Plan Violations Committee
- Article 8
The article requires the competent authority, when licensing a project, to ask for a no-disposal annotation on the property's title deed until development is complete, to be lifted only with its approval.
دون إخلال بأحكام نظام التسجيل العيني للعقار؛ على الجهة المختصة عند إصدار الترخيص الخاص للمشروع العقاري، طلب إجراء التأشير على صك تسجيل الملكية للعقار المراد تطو
- Article 21
The article creates a committee that hears violations of the Law other than the Article 24 offenses and imposes fines up to SAR 1 million; its decisions may be objected to before the Administrative Court within 60 days.
1- يتولى النظر في مخالفات أحكام النظام واللائحة -عدا المخالفات الواردة في المادة (الرابعة والعشرين) منه- وإيقاع عقوبة الغرامة بما لا يتجاوز (مليون) ريال؛ لجنةٌ
- Article 22
The article assigns to inspectors designated by decision of the official the catching, establishing and investigating of violations of the Law and Regulations, without prejudice to the authority of the Public Prosecution in Article 26.
دون إخلال بحكم الفقرة (1) من المادة (السادسة والعشرين) من النظام، يتولى مفتشون -يصدر بتحديدهم قرار من المسؤول- مجتمعين أو منفردين ضبط مخالفات أحكام النظام واللا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.