The General Real Estate Authority revealed that the draft Real Estate Brokerage System has been submitted to the relevant authorities, which are currently reviewing it. The draft includes strict regulations to protect those working in the brokerage sector, and the regulation requires practitioners to be licensed and qualified, in addition to having the technical means to provide the best services. This was announced during a meeting organized by the Eastern Province Chamber of Commerce on Thursday, in which the Authority’s Deputy Governor for Operations, Engineer Tariq bin Ali Al-Hafzi, participated, He explained that under the new system, the commission will be charged to the seller rather than the buyer, emphasizing that the commission rate is subject to agreement between the seller and the buyer, while a rate of 2.5% will be applied if not specified in the contract. (Real Estate)
Al-Hafzi confirmed that the rental system overseen by the Ministry of Housing will be transferred to the Authority according to the schedule, explaining that since its launch two years ago, the Authority has adopted 15 priorities, 18 initiatives, and 22 key indicators centered on governance, sustainability, effectiveness, and partner services—some of which have already been implemented, while others are in the final stages of approval.
He added that the Authority has focused on drafting regulations that address the areas of «real estate brokerage, real estate contributions, real estate registration, and the ownership and classification of real estate units,» with the aim of developing the sector by promoting a culture of real estate, establishing controls to regulate investment flows, and creating mechanisms to resolve problems and disputes.
Al-Hafzi also discussed the Saudi Real Estate Institute’s project aimed at training sector employees in several areas, most notably marketing, brokerage, and leasing. The institute relies on 20 available training curricula to provide this service, with more than 13,000 people having benefited from the service in recent months, bringing the total number of beneficiaries since the institute’s establishment to approximately 22,682. He noted that the institute offers incentives and discounts of up to 90%, and that the courses enable certificate holders to perform various tasks such as arbitration, conciliation, mediation, and more.
Related Topics: Real Estate – International Trade – Real Estate Appraisal – Residential Villas – Real Estate – Residential Land – Residential Developments – Residential Units – Construction
Abdulaziz Al-Issa, Editor-in-Chief, writes: Transformation... Post-Pandemic Investment
Real Estate
“Municipal and Rural Affairs” Grants 60 New Powers to Regional and Provincial Secretaries, Deputy Ministers, and Department Directors
The Ministry of Justice Issues 10,897 Rulings During the Period When In-Person Work Was Suspended
Riyadh Chamber Reviews Initiatives to Mitigate the Impact of the Coronavirus Pandemic
Housing Program Announces the Signing of 9 Agreements with Real Estate Companies to Develop and Build 2,422 Housing Units in Dammam, Al-Khobar, and Al-Ahsa
The General Real Estate Authority allocates exclusive incentives and facilities to real estate developments to build the capacity of the real estate sector
Adel Al-Ghamdi: The real estate brokerage rate in the Kingdom is the lowest in the world, while in the United States it ranges from 5 to 6%
