The General Real Estate Authority has started applying the Real Estate Auction Regulation, after it was presented last May through the “Explore” platform, and taking the comments and feedback received, in addition to taking the opinion of specialists and practitioners through several workshops held by the Authority during the past period.
The General Authority for Real Estate stressed that the application of the regulation ensures the documentation of real estate auctions on the one hand and the preservation of the rights of all parties on the other. She stressed that the implementation of the regulation ensures the documentation of real estate auctions on the one hand and the preservation of the rights of all parties on the other hand; documenting auctions on the Authority's platform contributes to raising the reliability of the real estate market and raising the level of transparency and disclosure in real estate auctions.
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The <a href="https://amlak.net. Real Estate Auctions consists of (12) articles, which include the main definitions in the activity of real estate auctions, the provisions of the license to practice it and the obligations of the licensee to practice this activity, the provisions of the brokerage contract to provide the real estate auction service, the electronic platform related to the auction registry in addition to the provisions of the request to hold the real estate auction and the provisions of its holding, management governance and closure, and the provisions of this regulation apply to all real estate auctions in the Kingdom, including judicial real estate auctions and their equivalents. The provisions of this regulation apply to all real estate auctions in the Kingdom, including judicial real estate auctions and its equivalent.
12 articles in the Real Estate Auctions Regulation
License to provide real estate auction service
<The regulation regulates two main tracks in the activity of real estate auctions; the first track is related to the license to practice the real estate auction service, which is a license for real estate establishments only and does not include individuals, and includes the conditions of the service license, the obligations that the auction organizer must perform, and the brokerage contract for the provision of services, which is the contract that the licensed establishment enters into with the owner of the property wishing to sell it through an auction, while the second track it regulates is related to holding the auction and includes the requirements for requesting it, the provisions for holding the auction after its approval by the Authority, and the mechanism for managing it from the management of the price bid between competitors until its closure.
Necessity of obtaining a VAL license
Based on the executive regulations of the Real Estate Brokerage Law and the Real Estate Auction Regulation, the General Authority for Real Estate requires that the practice of real estate auction activity be exclusively for establishments that have a ”VAL license to organize real estate auctions", which requires qualification before obtaining the license, in addition to obligating the real estate auction organizer to ensure the integrity of the processes that take place in the auction, stop or repeat the real estate auction in deals that are marred by technical errors or violations, to ensure the protection of supply and demand competition, and publish all real estate auction data held.According to the regulation, the organizer of real estate auctions must not affect fair competition in any way, save all real estate auction bulletins and records, record the proceedings of the auctions visually, documents and data for all its transactions for (five) years from the date of the end of the real estate auction, in addition to complying with the forms of brokerage contracts approved by the Authority, and not to conclude a contract for a property whose disposal is prohibited, and the regulation stipulates that the amount of entry into the auction should not exceed (5%) percent of the estimated value of the property based on an evaluation from a certified appraiser.
Disclosure of in-kind rights of the property
<The Authority requires the auction organizer to disclose the in rem rights associated with the property, disputes over the property, the mortgage or restriction affecting the use of the property, all rights and obligations on the property that are not documented in the property document, services related to the property and any information that may affect its value, in order to achieve the preservation of rights The facility licensed to hold the auction must close it after the completion of the auction within a period not exceeding (five) working days, and return all sums of money to the competitors except those who won the real estate auction within a period not exceeding (three) working days from the date of completion of the auction.According to the Real Estate Brokerage Law issued by the Council of Ministers Decision No. (679) dated 29 Dhu'lqa'dah 1443, the General Authority for Real Estate is the body responsible for regulating the activity of real estate auctions, which is one of the real estate activities regulated by the Real Estate Brokerage Law, which resulted in an executive regulation in addition to (five regulations) to regulate real estate auctions, real estate consulting and analysis, facilities management, property management, real estate marketing and advertising.
