Ministry of Commerce and Industry has confirmed that 75% of the real estate reports received by it through the Unified Communications Center (1900). The Ministry stated that 75% of the real estate reports received through the Unified Communications Center (1900) are the commission rate exceeding 2.5% of the value of the sale or rental contract, in addition to taking other fees for services not provided such as maintenance and property management, which led to poor quality of the real estate product, especially in the rental market, stressing the need for real estate offices to adhere to the executive regulations and comply with what is specified in them.
Real estate offices are required to comply with the executive regulations and adhere to what is specified in them. <The Ministry considered any real estate office charging a sales or rental commission of more than 2.5% of the contract value as a violation of the laws and regulations, as Article 9 of the Executive Regulations for Real Estate Offices stipulates that ”no real estate office may charge a sales commission of more than 2.5% of the value of the sold property and may not receive a rental commission of more than 2.5%.In the event that the office obtains from its dealers commissions that exceed the total percentage stipulated in this article, it is obliged to refund the excess to the person who paid it, without prejudice to the prescribed penalties.”
The ministry clarified that the real estate office must not charge a sales commission of more than 2.5% of the value of the sold property, nor may it obtain a rental commission of more than 2.5% of the rental value for one year. The ministry clarified that it will not tolerate any violation in accordance with the regulation, which includes several penalties for real estate offices, which start with a fine of 25,000 riyals, closing the office for up to one year, in addition to revoking the office's license permanently in case of repeated violations.
