Article 15 of the Saudi Real Estate Brokerage Law
المادة 15 من نظام الوساطة العقارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يستحق الوسيط العقاري العمولة في الحالات الآتية:
1- إتمام الصفقة العقارية التي توسط بها، وفقاً لعقد الوساطة، أثناء مدة سريانه، أو خلال مدة لا تتجاوز (شهرين) من انتهاء العقد، على أن يثبت وساطته في هذه الحالة.
2- عدم إتمام الصفقة العقارية، واستحقاق البائع أو المؤجر للعربون، وتحدد اللائحة النسبة والضوابط المتعلقة بذلك.
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 15 explained in plain English
This Article shows when the real estate broker is entitled to the commission, and gives two cases for this:
Case one: the transaction is completed
The broker is entitled to the commission if the real estate transaction he brokered is completed, in accordance with the brokerage contract, at one of two times:
- During the term of the brokerage contract.
- Or within a period not exceeding two months after the contract ends, in which case the broker must prove his brokerage.
The purpose of the two-month period is to protect the broker from the other party waiting for the contract to end and then completing the transaction with the person the broker introduced. But the burden of proving the brokerage in this case falls on the broker.
Case two: the transaction is not completed but earnest money is due
If the transaction is not completed, and the seller or lessor is entitled to the earnest money, the broker is entitled to a commission. The Article refers to the Regulations to set the percentage and the controls concerning this.
This Article complements Article 14, which sets the amount of the commission (2.5% of the sale value or first-year rent unless otherwise agreed in writing) and who bears it. Article 16 limits the broker's receipt of any amounts from the parties to the extent his work requires.
A person with a dispute over entitlement to the commission can consult a lawyer specialized in real estate cases.
Practical example
A landowner in Buraidah contracted with a broker for 90 days, and the broker introduced him to a buyer during the term. The contract ended, then the owner sold the land to the same buyer a month later. The broker is entitled to the commission here because the sale took place within a period not exceeding two months after the contract ended, provided he proves his brokerage.
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 15 of the Saudi Real Estate Brokerage Law
Is the broker entitled to the commission if the transaction is completed after his contract ends?
Yes, if it is completed within a period not exceeding two months after the contract ends, provided the broker proves his brokerage.
Is the broker entitled to a commission if the transaction is not completed?
He is entitled to it if the transaction is not completed and the seller or lessor is entitled to the earnest money, and the Regulations set the percentage and controls in this case.
Who must prove the brokerage after the contract ends?
The broker, since the Article requires him to prove his brokerage if the transaction is completed in the two months after the contract ends.
More articles on Real Estate Broker's Commission
- Article 1
The 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.
لغرض تطبيق أحكام النظام، يكون للألفاظ والعبارات الآتية المعاني المبيّنة أمام كل منها، ما لم يقتض السياق غير ذلك: النظام: نظام الوساطة العقارية. اللائحة: اللائحة
- Article 14
The 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.
1- تتحدد عمولة الوساطة العقارية بنسبة (2.5%) من قيمة الصفقة إن كانت بيعاً، ومن قيمة إيجار السنة الأولى فقط إن كانت إيجاراً، ما لم يتفق أطراف عقد الوساطة -كتابةً
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.