Article 31 of the Saudi Real Estate Investment Schemes Law
المادة 31 من نظام المساهمات العقارية · الفصل السادس: المخالفات والعقوبات
The article assigns the detection of violations of the Law or the Regulations to employees of the Authority or of bodies it uses, and lets them enter sites and the licensee's premises, seize documents and call on security bodies.
Official text (Arabic)
This article has not been amended since the law was issued.
يتولى ضبط ما يقع من مخالفات لأحكام النظام أو اللائحة موظفون من الهيئة ومن أي جهة أخرى ترى الهيئة الاستعانة بموظفيها، يصدر بتعيينهم قرار من الرئيس بعد موافقة جهاتهم. ولمسؤولي الضبط دخول المواقع والمشاريع المتعلقة بالأنشطة المشمولة بالنظام بما فيها مقر المرخص له، وعليهم ضبط المخالفات والتحفظ على المستندات والوثائق والأدلة المتعلقة بها وفقاً لإجراءات الضبط الصادرة عن الهيئة ويكونون تحت إشراف الهيئة، ولهم الاستعانة بالجهات الأمنية عند الحاجة. وتحدد اللائحة طريقة عملهم، وصلاحياتهم، ومكافآتهم.
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 31 explained in plain English
This article regulates who detects violations of the Law and their powers:
Who carries out detection? Employees of the Real Estate General Authority and of any other body whose employees the Authority sees fit to use, appointed by a decision of the President, who under Article 1 is the Authority's chief executive, after their bodies agree.
What are their powers and duties?
- Entering sites and projects related to the activities covered by the Law, including the licensee's premises.
- Detecting violations.
- Securing the documents, papers and evidence relating to them.
- Calling on security bodies when needed.
They work in accordance with the detection procedures issued by the Authority and under its supervision. The article refers to the Implementing Regulations to determine how they work, their powers and their rewards.
The violations meant include violations of the provisions of the Law or the Implementing Regulations. For example, Article 30 requires all financial proceeds relating to the scheme to be deposited directly in the escrow account, and a licensee's failure to do so is a violation of a provision of the Law. Article 32 then sets the penalties for anyone who violates the provisions of the Law or the Implementing Regulations, such as a warning, suspension or cancellation of the license, and a fine.
Licensees should be aware that their premises and project sites may be entered and inspected. Anyone subjected to a detection procedure who believes the officials exceeded their powers can consult a lawyer specializing in real estate cases or one specializing in administrative cases.
Practical example
The Real Estate General Authority received a report about a real estate investment scheme in Jeddah that violates the provisions of the Law. The appointed detection employees entered the licensed company's premises, secured the scheme's documents under the detection procedures issued by the Authority, and called on the security bodies because the need arose.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 31 of the Saudi Real Estate Investment Schemes Law
Who detects violations of the Real Estate Investment Schemes Law?
Employees of the Authority and of any other body whose employees the Authority sees fit to use, appointed by a decision of the President after their bodies agree.
Do detection employees have the right to enter the developer's premises?
Yes. They may enter sites and projects related to the activities covered by the Law, including the licensee's premises.
Can detection employees take documents?
They must secure the documents, papers and evidence relating to violations, in accordance with the detection procedures issued by the Authority.
More articles on Scheme Violations and Penalties
- Article 32
The article punishes violations of the Law or the Regulations with a warning, license suspension of up to one year, license cancellation, a fine of up to SAR 10,000,000, or a ban from scheme work of up to 10 years.
دون إخلال بما نصت عليه المادة (الخامسة والثلاثون) من النظام، يعاقب كل من يخالف أيًّا من أحكام النظام أو اللائحة بواحدة أو أكثر من العقوبات الآتية: 1- الإنذار. 2
- Article 33
The article provides for one or more committees formed by the head of the Authority, of at least three members including a Sharia or legal adviser, to consider violations and impose the Article 32 penalties.
تُكوّن بقرار من رئيس الهيئة لجنة أو أكثر لا يقل عدد أعضائها عن ثلاثة ويسمى أحدهم رئيساً، ويكون من بينهم مستشار شرعي أو نظامي؛ تتولى النظر في المخالفات وإيقاع ال
- Article 35
The article punishes with imprisonment for up to three years anyone who violates Articles 4, 21, 27 and 30, with referral to the Public Prosecution for investigation and prosecution before the competent court.
دون إخلال بأي عقوبة منصوص عليها في أي نظام آخر، يعاقب بالسجن مدة لا تزيد على (ثلاث) سنوات، كل من يخالف أيًّا من أحكام المواد الآتية: (الرابعة)، و(الحادية والعشر
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.