In force
Saudi Real Estate Brokerage Law
نظام الوساطة العقارية
The Real Estate Brokerage Law of Saudi Arabia. This page presents the official Arabic text of each article with plain-English explanations for residents and businesses.
- Articles
- 24
- In force
- 24
- Amended
- 0
- Issued
- 30/11/1443 AH
Issued by: مرسوم ملكي رقم (م/130) وتاريخ 1443/11/30هـ · قرار مجلس الوزراء رقم (679) وتاريخ 1443/11/29هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Real Estate Brokerage Law by topic
Articles of the Saudi Real Estate Brokerage Law
- Article 1The Article defines the key terms in the Real Estate Brokerage Law, such as real estate brokerage, real estate services, the brokerage contract, commission and security deposit, unless the context requires otherwise.
- Article 2The Article states that the objective of the Real Estate Brokerage Law is to regulate real estate brokerage activity and real estate services.
- Article 3The Article provides that the Real Estate Brokerage Law applies to anyone who practices real estate brokerage or real estate services, deals in them or benefits from them.
- Article 4The Article bars practicing real estate brokerage or providing real estate services without a license from the Authority, and allows a broker to provide complementary real estate services after licensing by the competent body.
- Article 5The Article sets the Real Estate General Authority's competences under the Law, including preparing contract forms, practice standards, and procedures for catching violations and receiving reports and complaints.
- Article 6The Article sets the duties of the Authority's board of directors, including approving regulations, standards and procedures for catching violations, and setting the fees for licenses and for the services a broker provides.
- Article 7The Article requires the brokerage contract to be in writing, deposited with the Authority and for a fixed term; if no term is set, it is ninety days from the date the contract is concluded.
- Article 8The Article allows the real estate broker to contract with one or more other brokers to act as intermediaries for the property under the brokerage contract, in accordance with its provisions, unless the contract provides otherwise.
- Article 9The Article requires the broker, when concluding the brokerage contract with the owner of the property or its usufruct, to obtain a copy of proof of ownership and the information and documents set by the Regulations.
- Article 10The Article sets the real estate broker's obligations, including practicing in person, not harming dealers, keeping secrets, verifying and disclosing, and stating his name and license number in advertisements.
- Article 11The Article requires the real estate broker to register all the brokerage contracts he concludes and all the real estate transactions he completes on the Authority's electronic platform, under the Regulations.
- Article 12The Article regulates the tenant's security deposit: the broker receives it and hands it to the Authority until the property is delivered, it is returned to the tenant or what remains after damages, and disputes go to experts or the competent court.
- Article 13The Article caps earnest money in a real estate transaction through a broker at 5% of its value, requires it to be stated in writing, sets when it is returned, and bars the broker from keeping it.
- Article 14The Article sets the brokerage commission at 2.5% of the sale value or of first-year rent unless otherwise agreed in writing, and the party contracting with the broker bears it.
- Article 15The Article sets two cases in which the broker earns a commission: completing the transaction during the contract term or within two months after it with proof of his brokerage, or the transaction failing while the seller or lessor is entitled to the earnest money.
- Article 16The Article bars the real estate broker from receiving amounts from those contracting with him except to the extent his work requires, and from using them for other than their purposes, and the Authority sets the controls for handling them.
- Article 17The Article gives the Authority the tasks of oversight, inspection and enforcement, lets it use public or private bodies, and requires those practicing the activity to let inspectors enter their premises and give them documents.
- Article 18The Article lists violations of the Law: practicing brokerage and real estate services without a license, giving incorrect information to obtain a license, and giving misleading information or concealing material information about the property.
- Article 19The Article sets the penalties for violating the Law: a warning, suspension of the license for up to a year, cancellation, or a fine of up to SAR 200,000, which may be doubled for repeat violations within three years.
- Article 20The Article creates a committee to hear violations and impose the Article 19 penalties, and allows the person penalized to challenge before the competent judicial authority within 30 days.
- Article 21The Article provides that if a violation of the Law also constitutes another violation punishable under another law, the more severe penalty applies.
- Article 22The Article provides that the Real Estate Brokerage Law repeals the Real Estate Offices Regulation issued by Council of Ministers Resolution No. 334 dated 7/3/1398 AH.
- Article 23The Article requires the Authority's board to issue the Implementing Regulations within 180 days of the Law's issuance, publish them in the Official Gazette, and have them take effect from the Law's effective date.
- Article 24The Article provides that the Real Estate Brokerage Law takes effect after 180 days from the date of its publication in the Official Gazette.
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