Saudi Gazette report

RIYADH — The Saudi Real Estate General Authority announced that the real estate services and brokerage activities have been streamlined as the six-month correction period ended on Tuesday, Dhul Hijjah 30, corresponding to July 18.

The Saudi Real Estate Brokerage Law and its executive regulations came into force on January 18, 2023 after its approval by the Council of Ministers. The law enabled the current practitioners who are rendering brokerage and real estate services to organize and correct their status within 6 months (180 days) that ended on Dhul Al-Hijjah 30.

The authority said that the law allows licensed companies and establishments to practice seven real estate activities. They are real estate brokerage, real estate marketing, property management, facilities management, real estate auction, real estate advertising, and real estate consultancy and analysis, while the work of individuals is limited to four of these activities, including brokerage, marketing, advertising, consultancy and real estate analysis.

These activities shall be practiced exclusively by real estate brokers, licensed and qualified service providers from establishments and individuals, the authority said, while noting that they are obligated by the law to work according to the forms of brokerage contracts approved by the authority. It is also required for them to issue a license for each advertisement according to an approved form on the authority’s electronic services platform. The licensee is obligated to add the number of the licensed advertisement on the real estate platform in case he wishes to advertise in it, according to the Saudi Press Agency.

The Real Estate Brokerage Law has been instrumental in achieving the reliability of real estate transactions, raise the level of services, and preserve the rights of dealers in the real estate sector in accordance with designated specifications, procedures, and licenses to practice the activity. The law covers all real estate activities and services, including the brokerage work for completing the real estate deals as well as e-brokerage services through modern technological means such as websites and social media platforms.

Each licensee is also obligated to disclose and be transparent by explaining in writing to the parties involved in real estate brokerage contract when there is a possibility of a conflict of interests, or if he is a broker for the two parties at the same time, and to inform the parties all information, data and documents related to the real estate transaction. He shall not broker the completion of any real estate transaction in which he has conflicting interests in any way, except after obtaining the written consent of the parties to the transaction, and the broker is obligated to maintain the confidentiality of the data he obtains.

The authority confirmed that the real estate brokerage practitioners and real estate service providers can now issue and renew licenses electronically. They can also conclude brokerage contracts and issue licenses for advertisements electronically through the real estate brokerage electronic services platform.

The authority has also provided, through the Saudi Real Estate Institute, three training paths to raise the capacity for those wishing to complete the qualification requirements to obtain a valid and active fal or real estate brokerage and marketing license.

Keeping the guarantee amount service has also been made available through Ejar, a service through which the guarantee amount is kept with Ejar system to compensate the property owner for any damages that may occur to the property during the tenant’s use of the rental unit as one of the requirements of the Real Estate Brokerage Law and its executive regulations.

During this period, the authority made it possible to issue all licenses except for the real estate auctions license, and the real estate consultancy and analysis license, which will be announced for availability in the coming period. The authority has also scheduled developing more than 40 services until the end of the first quarter of 2024. These enable online platforms to provide real estate services, documenting deals contracts, down payment and others, in an effort to continuously improve and develop the service of beneficiaries and partners.

The authority started taking punitive measures, effective from July19, against those who committed the listed violations through the monitoring mechanism that operates according to four main tracks: the authority’s monitoring teams; joint monitoring campaigns with the relevant government agencies, in addition to the electronic control track, and the response track to the communications submitted on the authority’s platform.

The authority called on all brokers and real estate service providers to comply with the provisions of the law and not to violate any one of them. It urged not to take any act that would harm the interests of those dealing with it. They are also urged to inform the authority of any amendment or change related to the practice of real estate brokerage activity.

The authority also advised to register all brokerage contracts concluded by it, and all real estate transactions that it concludes on the electronic platform. It is noteworthy that the Real Estate Brokerage Law, which began implementing all its provisions on Tuesday, aims to regulate real estate brokerage activity, and provide innovative and qualitative real estate services to the beneficiaries.