Article 5 of the Saudi Off-Plan Real Estate Sales and Leasing Law
المادة 5 من نظام بيع وتأجير مشروعات عقارية على الخارطة
The article allows the competent authority to ask a developer who markets the project through a real estate broker for a copy of the agreement concluded with the broker, as the Implementing Regulations specify.
Official text (Arabic)
This article has not been amended since the law was issued.
للجهة المختصة أن تطلب من المطور -إذا رغب في تسويق المشروع العقاري من خلال وسيط عقاري- تزويدها بنسخة من الاتفاقية المبرمة مع الوسيط العقاري، وذلك وفقًا لما تحدده اللائحة.
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 5 explained in plain English
This article deals with the case of marketing the project through a real estate broker. If the developer wishes to market the real estate project through a broker, the competent authority may ask it to provide a copy of the agreement concluded with the broker.
The following should be noted about the article:
- The request is discretionary for the competent authority ("the competent authority may ask"), so the text is not an automatic obligation to submit the agreement in every case, but a power that the authority exercises.
- The article applies when the developer wishes to market through a real estate broker; under Article 1, a broker is a natural or legal person licensed to practice real estate brokerage or provide real estate services in accordance with the legal provisions.
- The details, such as the timing and content of the request, are referred by the article to what the Implementing Regulations specify.
This article falls within the supervisory powers that Article 4 gives the competent authority, including following up and monitoring projects. Seeing the brokerage agreement lets the authority know who is dealing with buyers on the developer's behalf. Article 6 follows, which sets out the documents required to license the project.
A developer or broker who needs to draft a marketing agreement that complies with the Law and the Regulations should consult a lawyer who specializes in real estate cases.
Practical example
A development company in Makkah contracted with a licensed real estate brokerage office to market the units of its off-plan project. The competent authority asked the company for a copy of the marketing agreement with the office, so the company must provide it as the Implementing Regulations specify.
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 5 of the Saudi Off-Plan Real Estate Sales and Leasing Law
Must the developer always submit the real estate broker's agreement?
The article makes this a power of the competent authority: it may ask for a copy of the agreement if the developer wishes to market through a broker, as the Implementing Regulations specify.
Who is a real estate broker under the Law?
A natural or legal person licensed to practice real estate brokerage or provide real estate services in accordance with the legal provisions.
More articles on Register of Real Estate Developers
- Article 3
The article bars a developer from off-plan sale and leasing unless registered in the developers registry, and bars advertising or exhibiting a project before it is licensed.
لا يحق لأي مطور عقاري مزاولة نشاط بيع وتأجير مشروعات عقارية على الخارطة إلا إذا كان مقيدًا في سجل قيد المطورين، ولا يحق الإعلان عنها في وسائل الإعلام المحلية أو
- Article 4
The article sets the competent authority's tasks: supervising real estate projects, licensing and monitoring them, preparing a public database of licensed projects, and preparing the developers registry.
تتولى الجهة المختصة وفقًا للنظام ما يلي: 1- الإشراف على المشروعات العقارية، بما في ذلك إصدار التراخيص اللازمة لها، ومتابعة تنفيذها، والرقابة والتفتيش عليها. ويج
- Article 7
The article allows the competent authority, when needed, to register a natural person in the developers registry and license them for off-plan sale and leasing under rules set by the Implementing Regulations.
للجهة المختصة -في سبيل تحقيق أهداف النظام وعند الاقتضاء- قيد الشخص الطبيعي في سجل قيد المطورين والترخيص له بمزاولة نشاط بيع وتأجير مشروعات عقارية على الخارطة؛ و
- Article 25
The article sets the cases for striking a developer off the developers registry: discretionary for not starting within 6 months, repeated stalling or poor quality, and mandatory on bankruptcy or punishment for a serious violation.
1- للجهة المختصة أن تشطب قيد المطور من سجل قيد المطورين في أي من الحالتين الآتيتين: أ- إذا لم يباشر الأعمال الإنشائية للمشروع العقاري المرخص له بعد انقضاء (ستة)
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.