Article 26 of the Saudi Off-Plan Real Estate Sales and Leasing Law
المادة 26 من نظام بيع وتأجير مشروعات عقارية على الخارطة
The article assigns investigation and prosecution of the Article 24 offenses to the Public Prosecution and their adjudication to the competent court, and allows the court to publish a summary of the final judgment at the violator's expense.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تتولى النيابة العامة مباشرة التحقيق والادعاء في المخالفات المنصوص عليها في المادة (الرابعة والعشرين) من النظام؛ أمام المحكمة المختصة.
2- تتولى المحكمة المختصة النظر في القضايا الناشئة عن المخالفات المنصوص عليها في المادة (الرابعة والعشرين) من النظام وتوقيع العقوبات بحق المخالفين.
3- للمحكمة المختصة تضمين الحكم الصادر بالعقوبة النص على نشر ملخصه على نفقة المخالف في صحيفة محلية تصدر في مكان إقامته، فإن لم يكن في مكان إقامته صحيفة ففي أقرب منطقة له، أو نشره في أي وسيلة أخرى مناسبة، وذلك بحسب نوع المخالفة المرتكبة وجسامتها وتأثيرها، على أن يكون النشر بعد اكتساب الحكم الصفة النهائية.
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 26 explained in plain English
This article sets out the procedures for hearing the offenses in Article 24, which are 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, submitting incorrect documents, phantom projects, embezzling funds and failing to deposit them in the escrow account.
(1) Investigation and prosecution: The Public Prosecution conducts them before the competent court.
(2) Adjudication and punishment: The competent court hears the cases arising from these violations and imposes the penalties on the violators.
(3) Publishing the judgment: The court may provide in the judgment imposing the penalty for publishing a summary of it at the violator's expense:
- In a local newspaper published in the place of his residence, or if there is none, in the nearest region to him, or in any other appropriate medium.
- According to the type of violation, its seriousness and its impact.
- Provided that the publication is after the judgment becomes final.
Publication is optional for the court and is not an automatic penalty in every judgment.
This shows the difference within the Law: the more serious violations in Article 24 go through the Public Prosecution and the competent court. The article comes after Article 25, which governs striking off the developer's registration, and before Article 27 on the financial fee for the competent authority's services.
Anyone harmed by one of these acts or accused of them is advised to consult a lawyer who specializes in criminal and real estate cases.
Practical example
The competent court convicted a person who knowingly advertised a phantom off-plan villa project in Jeddah, after the Public Prosecution conducted the investigation and prosecution. The judgment provided for publishing a summary of it at his expense in a local newspaper, and the publication is made only after the judgment becomes final.
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 26 of the Saudi Off-Plan Real Estate Sales and Leasing Law
Who investigates the offense of off-plan selling without a license?
The Public Prosecution conducts the investigation and prosecution of the violations in Article 24 before the competent court.
Can the judgment against a violating developer be published?
The competent court may provide in the judgment for publishing a summary of it at the violator's expense in a local newspaper or an appropriate medium, according to the type of violation, its seriousness and its impact.
When is a summary of the judgment published?
After the judgment becomes final.
Articles this article refers to
More articles on Penalty for Off-Plan Sales without a License
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.