Article 16 of the Saudi Real Estate Brokerage Law

This Article places restrictions on the broker's handling of his clients' money, in three paragraphs:

1. Restriction on receiving: the broker may not receive any amount from any of the parties contracting with him for the benefit of any of them, except to the extent that carrying out his work requires, as the Regulations set. The starting point is a ban, and the exception is limited to the need of the work as the Regulations explain it.

2. Restriction on use: the broker may not use an amount he receives under paragraph 1 except for the purposes assigned to it. He does not use it for his own expenses or for any purpose other than the one it was handed over for.

3. The Authority's controls: the Authority sets controls for the broker's handling of amounts he receives from any of the parties contracting with him.

The Article thus combines the Law (the general principle), the Regulations (setting the extent the work requires), and the Authority's controls (the way of handling the amounts). The Article itself does not say which amounts the work needs, and this is left to the Regulations.

These amounts differ from what Article 15 regulates, which sets the cases in which the broker is entitled to the commission: the commission is the broker's right when its conditions are met, whereas the amounts meant here are what he receives for the benefit of one of the parties. It is also linked to Article 17, which gives the Authority the tasks of oversight, inspection and enforcement to implement the Law.

A person who handed an amount to a broker and wants to know their position can consult a lawyer specialized in real estate cases.