Article 7 of the Saudi Real Estate Brokerage Law
المادة 7 من نظام الوساطة العقارية
The Article requires the brokerage contract to be in writing, deposited with the Authority and for a fixed term; if no term is set, it is ninety days from the date the contract is concluded.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجب أن يكون عقد الوساطة مكتوباً، وأن يودع الوسيط نسخة من العقد لدى الهيئة، ولا يُحتج به إلا بذلك، وتحدد اللائحة إجراءات الإيداع.
2- يجب أن يكون عقد الوساطة محدد المدة، وإذا لم يُتفق عليها في العقد فتكون (تسعين) يوماً من تاريخ إبرامه.
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 7 explained in plain English
This Article sets formal requirements for the brokerage contract between the real estate broker and the benefiting party:
First: writing and deposit (paragraph 1)
- The brokerage contract must be in writing.
- The broker must deposit a copy of the contract with the Authority.
- The contract may not be relied on except in this way; that is, relying on it depends on its being written and deposited.
- The deposit procedures are set by the Regulations.
Under the text of the Article, the deposit is an obligation on the broker, but the effect of not depositing (the contract cannot be relied on) concerns both parties, so it is useful for the owner or beneficiary to make sure the contract is written and deposited.
Second: fixing the term (paragraph 2)
The contract must be for a fixed term. If the parties do not agree on a term, the term by operation of the Law is 90 days from the date the contract is concluded.
This Article is linked to Article 8, which allows the broker to contract with one or more other brokers to act as intermediaries for the property that is the subject of the brokerage contract, in accordance with the contract's provisions, unless the contract provides otherwise.
A person who has an unwritten or undeposited contract and wants to know the effect on their position can consult a lawyer specialized in real estate cases.
Practical example
Sarah signed a written contract with a real estate office in Khobar to market and sell her apartment, and the contract did not state a term. Under this Article the contract's term is 90 days from the date it was signed, and the office must deposit a copy of the contract with the Authority so that it can be relied on.
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 7 of the Saudi Real Estate Brokerage Law
Is an oral agreement with a real estate broker valid?
The Article requires the brokerage contract to be in writing and the broker to deposit a copy with the Authority, and provides that the contract may not be relied on except in this way.
What is the term of a brokerage contract if none is stated in it?
The term is 90 days from the date the contract is concluded.
Who is responsible for depositing the brokerage contract with the Authority?
The real estate broker deposits a copy of the contract with the Authority, and the Regulations set the deposit procedures.
More articles on Real Estate Brokerage Contract
- 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 8
The Article allows the real estate broker to contract with one or more other brokers to act as intermediaries for the property under the brokerage contract, in accordance with its provisions, unless the contract provides otherwise.
للوسيط العقاري التعاقد مع وسيط عقاري آخر أو أكثر؛ للتوسط في العقار محل عقد الوساطة وفقاً لأحكامه، ما لم ينص في العقد على غير ذلك.
- Article 9
The Article requires the broker, when concluding the brokerage contract with the owner of the property or its usufruct, to obtain a copy of proof of ownership and the information and documents set by the Regulations.
على الوسيط العقاري عند إبرام عقد الوساطة مع مالك العقار أو مالك المنفعة الحصول على صورة من إثبات ملكية العقار أو ملكية المنفعة، والمعلومات، والوثائق التي تحددها
- Article 11
The Article requires the real estate broker to register all the brokerage contracts he concludes and all the real estate transactions he completes on the Authority's electronic platform, under the Regulations.
على الوسيط العقاري تسجيل جميع عقود الوساطة التي يبرمها، وجميع الصفقات العقارية التي يتمها، في المنصة الإلكترونية الخاصة بها؛ وفقاً لما تحدده اللائحة.
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.