Article 18 of the Saudi Real Estate Brokerage Law
المادة 18 من نظام الوساطة العقارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يُعد من مخالفات أحكام النظام ارتكاب أي من الأفعال الآتية:
1- ممارسة نشاط الوساطة العقارية والخدمات العقارية دون ترخيص.
2- تقديم معلومات غير صحيحة للحصول على ترخيص لممارسة نشاط الوساطة العقارية والخدمات العقارية.
3- تقديم معلومات مضللة أو إخفاء معلومات جوهرية في شأن العقار محل الوساطة أو الخدمة العقارية.
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 18 explained in plain English
This Article mentions acts that are violations of the Law's provisions, which are three:
- Practicing without a license: practicing real estate brokerage and real estate services without a license.
- Falsehood in the license application: providing incorrect information to obtain a license to practice the activity.
- Misleading or concealing: providing misleading information, or concealing material information, about the property that is the subject of the brokerage or the real estate service.
The phrase "is considered among the violations" indicates that these acts are violations, which is consistent with Article 19, which punishes anyone who violates any provision of the Law with one or more of: a warning, suspension of the license for a period not exceeding one year, cancellation of the license, or a fine not exceeding SAR 200,000, with the fine possibly doubled if the violation is repeated within three years. The Regulations set the classification of violations and the penalties set for them.
As for catching these violations, under Article 17 this is done by the person assigned to oversight, inspection and enforcement, under the enforcement procedures set by the Regulations.
For those dealing with brokers, paragraph 3 helps anyone harmed by the concealment of material information about the property or by misleading information, since the Law treats that as a violation. A person who wants to assess their case can consult a lawyer specialized in real estate cases.
Practical example
A person brokered the sale of land in Hail for a commission without holding a license, and concealed from the buyer material information about the land that he knew. His act falls under paragraph 1 (practicing without a license) and paragraph 3 (concealing material information about the property), and is subject to the penalties in Article 19.
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 18 of the Saudi Real Estate Brokerage Law
Is practicing real estate brokerage without a license a violation?
Yes, practicing real estate brokerage and real estate services without a license is among the violations of the Law under paragraph 1.
Is concealing information about the property a violation?
Yes, providing misleading information or concealing material information about the property that is the subject of the brokerage or the real estate service is a violation under paragraph 3.
What is the penalty for violating the Real Estate Brokerage Law?
Article 19 provides for one or more of: a warning, suspension of the license for a period not exceeding one year, cancellation of the license, and a fine not exceeding SAR 200,000.
More articles on Real Estate Brokerage Violations
- Article 5
The 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.
تتولى الهيئة ما يلي: 1- إعداد نماذج العقود الإلزامية والاسترشادية الواردة في النظام. 2- إعداد برامج وآليات للتحفيز على ممارسة الوساطة العقارية والخدمات العقارية
- Article 17
The 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.
1- تباشر الهيئة مهمات الرقابة والتفتيش والضبط لتنفيذ أحكام النظام، ويجوز لها أن تستعين بمن تراه من الجهات العامة أو الخاصة لتأدية هذه المهمات، وتحدد اللائحة الإ
- Article 19
The 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.
1- يعاقب كل من يخالف أي حكم من أحكام النظام، بعقوبة أو أكثر من العقوبات الآتية: أ- الإنذار. ب- تعليق الترخيص لمدة لا تتجاوز (سنة). ج- إلغاء الترخيص. د- غرامة لا
- Article 20
The 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.
1- تكوَّن بقرار من رئيس المجلس لجنة (أو أكثر) من ثلاثة أعضاء -على الأقل- يكون أحدهم من المختصين في الشريعة أو الأنظمة؛ تتولى النظر في مخالفات أحكام النظام، وإيق
- Article 21
The Article provides that if a violation of the Law also constitutes another violation punishable under another law, the more severe penalty applies.
إذا شكل ارتكاب أي مخالفة لأحكام النظام مخالفةً أخرى يعاقب عليها نظام آخر؛ فتطبق العقوبة الأشد.
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.