Article 33 of the Saudi Real Estate Investment Schemes Law
المادة 33 من نظام المساهمات العقارية · الفصل السادس: المخالفات والعقوبات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 العقوبات المنصوص عليها في المادة (الثانية والثلاثين) من النظام، وذلك بحسب نوع المخالفة المرتكبة وجسامتها ومدى تأثيرها، ويعتمد قرار اللجنة من رئيس الهيئة أو من يفوضه بذلك. ويصدر الرئيس قواعد عمل اللجنة وتحديد مكافآت أعضائها.
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 33 explained in plain English
This article specifies the body that considers violations and imposes penalties:
Formation of the committee:
- One or more committees are formed by a decision of the head of the Authority.
- The number of members is not fewer than three, and one of them is named chair.
- Among them is a Sharia or legal adviser.
Its task: to consider violations and impose the penalties set out in Article 32, namely: a warning, suspension of the license for a period not exceeding one year, cancellation of the license, a fine of up to SAR 10,000,000, and a ban on the licensee or the scheme manager from working in real estate investment schemes for a period not exceeding 10 years.
Criteria for setting the penalty: the committee takes into account the type of violation, its seriousness and its impact; not every violation calls for the most severe penalties.
Approval of the decision: the committee's decision is not complete until it is approved by the head of the Authority or whoever the head delegates.
The head issues the committee's rules of work and sets the rewards of its members.
Article 34 then allows a grievance against this committee's decision to be brought before the Administrative Court within 60 days of the date of notification of the decision. Anyone against whom the committee has issued a decision should keep to this period, and would do well to consult a lawyer specializing in administrative cases without delay.
Practical example
A violation committed by a licensed company in Dammam was referred to the violations committee. The committee, made up of three members including a legal adviser, considered the type of violation, its seriousness and its impact, and decided to suspend the license for six months, and the head of the Authority then approved 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 33 of the Saudi Real Estate Investment Schemes Law
Who imposes penalties for real estate investment scheme violations?
One or more committees formed by a decision of the head of the Authority, which consider violations and impose the penalties set out in Article 32.
How many members does the violations committee have?
Not fewer than three, one of them named chair, and among them a Sharia or legal adviser.
Is the committee's decision final as soon as it is issued?
The committee's decision is approved by the head of the Authority or whoever the head delegates, and a grievance may be brought against it before the Administrative Court under Article 34.
Articles this article refers to
More articles on Grievances Against the Violations Committee
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.