Real estate brokerage or brokerage is defined as the process of completing a sale or lease for a payment contingent on the outcome.
Real estate brokerage or brokerage is defined as the process of completing a sale or lease for a payment contingent on the outcome.
The first article of the Real Estate Brokerage Law issued by Royal Decree No. (M/130) dated 11/30/1443 AH, defines the mediation contract: It is an agreement between the real estate broker and the party benefiting from real estate brokerage to complete a real estate transaction or provide a real estate service. It also defined - for the same article - that the real estate broker: A natural or legal person licensed to practice real estate brokerage or provide real estate services in accordance with the provisions of the law.
It is very common to include the legal agent or the owner of the property or the company that owns the property in the percentage of the real estate brokerage, and here the issue appears clearly in multiple forms; the agent may sell the property and then claim a percentage of the value of the transaction as a courier, or a follower of the owner intervenes in offering the property to brokers, and then mentions the entitlement of brokerage fees.
Real estate brokerage fees.
The legal characterization of this issue is based on the distinction of "capacity". The legitimate agent, no matter how many negotiations he initiates to complete the sale, remains before the system as a representative of the principal and does not acquire the status of a third party, as is the case for the owner and his dependents, as they are not independent parties to the contractual process.
The legal characterization of the issue is based on the distinction in "capacity".
The broker (third party), who does not represent the owner or the buyer, is the one who stands outside this contractual relationship and plays an independent role in linking the two parties without being biased towards any of the parties. Therefore, in order to prevent the emergence of illegal practices in real estate and reduce the disputes of including unworthy parties in the fees of the endeavor, the Supreme Court of Saudi Arabia has decided that ("The seller of the property and the selling agent are not entitled to a quest; because the quest is for the third party who reconciled the seller and the buyer.) Supreme Court Decision No. (3/3/19) dated 9/9/1430H: (Principles and Decisions, p. 40).
