Article 4 of the Saudi Real Estate Brokerage Law
المادة 4 من نظام الوساطة العقارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا تجوز ممارسة الوساطة العقارية ولا تقديم الخدمات العقارية إلا بعد الحصول على ترخيص من الهيئة. وتحدد اللائحة أحكامه، وشروطه، وإجراءاته، ومدته، وتجديده.
2- للوسيط العقاري تقديم خدمات عقارية مكملة، وفقاً للفقرة (6) من المادة (السادسة) من النظام، وذلك بعد الحصول على ترخيص من الجهة المختصة، ووفقاً لما تحدده اللائحة من ضوابط.
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 4 explained in plain English
This Article sets the basic rule on licensing, and consists of two paragraphs:
Paragraph 1: No one may practice real estate brokerage or provide real estate services except after obtaining a license from the Authority. The Article does not give the details of the license, but refers to the Regulations to set its provisions, conditions, procedures, duration and renewal. A person who wants to know the required conditions or the license period must refer to the Regulations and what the Authority issues.
Paragraph 2: A real estate broker may provide complementary real estate services, on three conditions the text states:
- that this is done under paragraph (6) of Article 6 of the Law.
- that he obtains a license from the competent body, not only from the Authority.
- that he complies with the controls set by the Regulations.
This Article is linked to Article 3, which makes the Law apply to anyone who practices real estate brokerage or services, so the licensing requirement addresses everyone who carries on this activity. It is also linked to Article 5, under which the Authority prepares the standards and controls needed to practice real estate brokerage, and the procedures for catching violations and receiving reports and complaints.
For a person dealing with a broker, verifying that the broker holds a license is an important step before contracting with them. A person who needs an opinion on a particular situation can consult a lawyer specialized in real estate cases.
Practical example
Khalid wants to open an office in Jeddah to broker the sale of land and the lease of apartments for a commission. Under this Article he may not begin this activity before obtaining a license from the Real Estate General Authority, and he refers to the Regulations for the license conditions, procedures, duration and how it is renewed.
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 4 of the Saudi Real Estate Brokerage Law
Can one practice real estate brokerage without a license?
No, the Article provides that real estate brokerage and real estate services may not be practiced or provided except after obtaining a license from the Authority.
What is the duration of a real estate brokerage license and how is it renewed?
The Article does not set the duration or the way of renewal, but refers to the Regulations to set the provisions of the license, its conditions, procedures, duration and renewal.
Does a broker need another license to provide complementary real estate services?
Yes, paragraph 2 requires him to obtain a license from the competent body, and for this to be under paragraph (6) of Article 6 and the Regulations' controls.
Articles this article refers to
More articles on Licensing the Real Estate Broker
- 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 2
The Article states that the objective of the Real Estate Brokerage Law is to regulate real estate brokerage activity and real estate services.
يهدف النظام إلى تنظيم الوساطة العقارية والخدمات العقارية.
- Article 3
The 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.
تسري أحكام النظام على كل من يمارس الوساطة العقارية أو الخدمات العقارية، أو يتعامل بهما، أو يستفيد منهما.
- 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 6
The 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.
يتولى المجلس المهمات الآتية: 1- اعتماد اللوائح التنظيمية للنشاطات والخدمات المشمولة باختصاصات الهيئة، وفقاً لأحكام النظام. 2- اعتماد المعايير والضوابط اللازمة ل
- Article 22
The 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.
يلغي النظام لائحة تنظيم المكاتب العقارية، الصادرة بقرار مجلس الوزراء رقم (334) وتاريخ 7 / 3 / 1398هـ.
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.