Article 2 of the Saudi Real Estate Authority Statute
المادة 2 من تنظيم الهيئة العامة للعقار
The article provides that the General Authority for Real Estate has legal personality and financial and administrative independence, is organizationally linked to the Minister, is based in Riyadh, and may open branches and offices within the Kingdom.
Official text (Arabic)
This article has not been amended since the law was issued.
تتمتع الهيئة بالشخصية الاعتبارية والاستقلال المالي والإداري، وترتبط تنظيميًّا بالوزير، ويكون مقرها الرئيس في مدينة الرياض، ولها فتح فروع ومكاتب داخل المملكة بحسب الحاجة.
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 2 explained in plain English
This article sets the legal nature of the General Authority for Real Estate:
- Legal personality: it is an independent legal entity that contracts and litigates in its own name.
- Financial and administrative independence: it manages its own affairs and funds within the limits of the Statute.
- Organizational link to the Minister: who under Article 1 is the Minister of Housing.
- The headquarters: its main headquarters is in the city of Riyadh.
- Branches and offices: it may open branches and offices within the Kingdom as needed, and the text does not mention branches outside the Kingdom.
The difference between "independence" and "organizational link" is important: the Authority manages its affairs and funds independently, but is linked to the Minister organizationally, that is, within the framework of the government system.
The practical meaning for those who deal with it, such as developers and real estate brokers, is that the Authority is an independent body they deal with directly, since Article 3 makes its basic purpose the in-rem registration of real estate and the regulation and supervision of non-governmental real estate activity, and its powers include licensing real estate activities. Under the definition in Article 1, the license is also a document issued by the Authority authorizing its holder to engage in one or more real estate activities.
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 2 of the Saudi Real Estate Authority Statute
Is the General Authority for Real Estate independent?
Yes. It has legal personality and financial and administrative independence, and is organizationally linked to the Minister.
Where is the General Authority for Real Estate headquartered?
Its main headquarters is in the city of Riyadh, and it may open branches and offices within the Kingdom as needed.
More articles on Definitions and Nature of the Real Estate Authority
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.