What is the line between advertising and real estate practice?
The distinction between the two depends on the advertiser’s behavior and the nature of the role they play, as explained by the official spokesperson of the General Real Estate Authority Mr. Tayseer Al-Mufarraj during “Real Estate Monday” in his discussion of Regulations on Real Estate Marketing and Advertising, and can be summarized as follows:
Real Estate Activity:
Advertising is considered a real estate activity if it involves (direct communication with clients, negotiation, or responding to inquiries). This role is limited exclusively to Licensed Saudis, and unlicensed advertisers are not permitted to engage in this practice.
Advertising Medium:
Advertisements through media outlets or influencers are classified as a means of dissemination only and are permitted under two conditions:
Compliance with the requirement to display the license number.
and not performing any brokerage functions.
Golden Rule
All advertising methods must ultimately lead to a licensed real estate broker; they are the only party authorized to issue advertising licenses and ensure the property’s legal compliance.
Prohibitions and Red Lines
The Authority emphasized the need to avoid practices that mislead consumers or disrupt the market, most notably:
Publishing incorrect information or contact details that do not reflect reality.
Providing misleading information about a property’s specifications or value
Using official entities" logos in advertisements without prior authorization
Defaming others or using unverified contact information
Obligations of Real Estate Platforms
Technically linking the platform directly to the General Real Estate Authority.
Verifying that licenses are valid before publication.
Immediately removing non-compliant listings and providing clear channels for receiving complaints.
Cases Resulting in License Revocation
Proof that the information provided when applying for an advertisement license is false.
The advertisement contains information that is completely inconsistent with the text of the official license.
Cases That Do Not Require a Separate Advertising License
If there is a comprehensive license for the project, provided that the license number and basic information are displayed.
