Article 20 of the Saudi Real Estate Brokerage Law
المادة 20 من نظام الوساطة العقارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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، وإيقاع العقوبات المنصوص عليها في المادة (التاسعة عشرة) من النظام، وتصدر قراراتها بالأغلبية، ويعتمدها الرئيس التنفيذي للهيئة. وتحدد اللائحة إجراءات عمل اللجنة.
2- يجوز لمن صدر بحقه قرار العقوبة التظلم منه لدى الجهة القضائية المختصة خلال (ثلاثين) يوماً من إبلاغه بقرار العقوبة.
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 20 explained in plain English
This Article regulates the body that hears violations and the route for challenging its decisions, in two paragraphs:
Paragraph 1: the violations committee
- One or more committees are formed by decision of the Board chair.
- Each committee consists of at least three members, one of whom is a specialist in Sharia or law.
- It hears violations of the Law and imposes the penalties set out in Article 19.
- Its decisions are issued by majority and are approved by the Chief Executive Officer of the Authority.
- The Regulations set the committee's working procedures.
Paragraph 2: challenge
A person against whom a penalty decision is issued may challenge it before the competent judicial authority within 30 days of being notified of the penalty decision. The period therefore starts from the date of notification, not the date the decision was issued.
The penalties the committee imposes are those in Article 19: 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, with the fine possibly doubled for repetition within three years. Article 21 adds that if the violation also constitutes another violation punishable under another law, the more severe penalty applies.
Because the challenge period is fixed, a person against whom a penalty decision has been issued and who wishes to challenge it would do well to consult a lawyer specialized in real estate cases promptly, before the period expires.
Practical example
The owner of a real estate office in Dammam was notified of a committee decision suspending his license, after the decision was approved by the Authority's Chief Executive Officer. If he considers the decision wrong, he may challenge it before the competent judicial authority within 30 days of the date he was notified of the decision.
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 20 of the Saudi Real Estate Brokerage Law
Who imposes penalties for real estate brokerage violations?
One or more committees formed by decision of the Board chair, of at least three members, whose decisions are issued by majority and approved by the Authority's Chief Executive Officer.
How long is there to challenge a real estate brokerage penalty decision?
30 days from the date the person concerned is notified of the penalty decision.
Where do I challenge a penalty decision?
Before the competent judicial authority, as paragraph 2 provides.
Articles this article refers to
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 18
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.
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 ترخ
- 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 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.