Article 8 of the Saudi Real Estate Brokerage Law
المادة 8 من نظام الوساطة العقارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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.
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 8 explained in plain English
This Article deals with a common situation in the real estate market, which is a broker cooperating with other brokers to market the same property.
The rule: a real estate broker who has concluded a brokerage contract may contract with one or more other real estate brokers to act as intermediaries for the property that is the subject of the contract.
The two limits in the text:
- the other broker's intermediation must be in accordance with the provisions of the original brokerage contract, so it does not depart from its terms.
- the contract must not contain anything preventing this; if the brokerage contract provides otherwise, the contract applies.
This means the starting point is permission, and the party contracting with the broker (such as the owner) may stipulate in the contract that the broker may not involve others, or may set conditions for doing so.
This Article is linked to Article 7, which requires the brokerage contract to be in writing, deposited with the Authority and for a fixed term, because the provisions of that contract are what the other broker is bound by. It is also linked to Article 9, which requires the broker, when concluding the 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.
The Article does not address how the commission is divided among the brokers, so this matter cannot be derived from this text. A person who needs to draft a suitable condition in the contract can consult a lawyer specialized in real estate cases.
Practical example
A landowner in Dammam contracted with a real estate office to sell it, and the contract contained no condition about involving other brokers. The office may here contract with another office to market the land under the original contract's terms. If the owner wanted to prevent this, he would have had to say so expressly in the brokerage contract.
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 8 of the Saudi Real Estate Brokerage Law
Can a real estate broker use another broker to sell a property?
Yes, he may contract with one or more other brokers to act as intermediaries for the property in accordance with the provisions of the brokerage contract, unless the contract provides otherwise.
How do I prevent the broker from involving other offices?
By stating so in the brokerage contract, because the Article makes the permission conditional on the contract containing nothing to the contrary.
Is the other broker bound by the terms of the original contract?
Yes, the Article requires that the intermediation for the property be in accordance with the provisions of the brokerage contract.
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 7
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.
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 م
- 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.