The General Real Estate Authority revealed the start of monitoring and compliance work for the real estate brokerage system, according to four main tracks; namely: The Authority's field monitoring teams that verify the regularity of the work of establishments or the regularity of billboards to display real estate, the monitoring campaigns in which the Authority participates in monitoring campaigns with the relevant authorities on violations of localization, cover-up or the regularity of workplaces, in addition to the electronic monitoring track that targets electronic channels and real estate platforms to verify the regularity of advertisements and digital brokerage practices, and the track of responding to reports submitted through the Authority's platform.

Real estate and real estate brokerage system

Real estate and real estate brokerage system.

Penalty200 thousand riyals

The Authority called on all brokers and real estate service providers to comply with the rules of the system and not to violate it, and to see the violations to avoid penalties, which according to the system include warnings, suspension or revocation of the license or financial fines that may reach 200 thousand riyals, stressing that the fine can be doubled if the violation is repeated within three years of its commission, and the executive regulations of the system have determined the classification of violations and the prescribed penalties.

The executive regulations of the system determined the classification of violations and the prescribed penalties for them.

System Violations

<The Authority confirmed that the practice of real estate brokerage activity or real estate services without obtaining a valid license or after its expiration are considered major violations of the system, in addition to failing to indicate the name of the licensee or the license number in any advertisement or publication related to real estate or providing real estate brokerage services without possessing copies of documents and proof of ownership of the property or ownership of its benefit are also punishable violations.

Other violations of the system

<The following practices are among the violations of the system Failure to comply with the mandatory forms and contracts for real estate services and activities, failure to deposit or register the concluded brokerage contracts or real estate transactions in the electronic platform, failure to enable those charged with monitoring, inspection and control to perform their work, or obstructing them from carrying out their tasks, disclosure by the broker Secrets of the transactions subject to mediation, doing an act or omission that would harm the interests of those dealing with the broker, or contradict the provisions of the law, not informing the Authority of any amendment or change related to the practice of the activity, not handing over the security deposit to the Authority and those authorized by it, the real estate broker retains the deposit as a guarantee of his right The broker receives any amount from the contracting parties for the benefit of any of them in excess of the amount he requires to carry out his work, the broker disposes of the amounts received from the contracting parties for purposes other than the purposes allocated to them, failure to comply with the controls of receiving payments by the contracting parties, failure to exercise due diligence to verify the accuracy of the information obtained from the property owner or utility owner, failure to disclose the information obtained from the property owner or utility owner when showing the property, providing misleading information or concealing material information regarding the real estate property or the real estate service.

Regulating Real Estate Brokerage Activity

It is noteworthy that the Real Estate Brokerage System, which has begun to apply all its provisions, aims to organize real estate brokerage activity, provide innovative and quality real estate services to beneficiaries, raise the quality of real estate transactions, serve real estate brokers and beneficiaries, contribute to the sustainability of real estate assets, reduce real estate disputes, preserve the rights of dealers, and raise the transparency of the real estate market, and all beneficiaries can view the violations and penalties established for them through the official website of the Authority.