As part of the ongoing efforts to regulate the real estate sector and enhance its practices, the Public Authority for Real Estate has announced a set of provisions regarding the down payment in sales and rental operations through real estate brokerage. These provisions aim to regulate the relationship between the parties involved in real estate transactions and ensure the rights of all, while specifying the conditions and controls for the amount and distribution of the deposit.

1. Determining the amount of the deposit

<According to the Real Estate Brokerage Law and its executive regulations, the amount of the deposit related to real estate transactions conducted through a real estate broker is determined based on an agreement between the parties involved. The amount of the deposit must not exceed (5%) of the value of the transaction. If the amount exceeds this percentage, the amount is considered a down payment and not a deposit.

2. Terms of the deposit

The amount paid by the buyer or lessee is not a deposit unless it is expressly stated in the contract. If this is not specified in writing, the amount is considered a down payment that the seller or lessor is not entitled to recover if the contract is terminated.

3. Return of Deposit

The seller or lessor must complete the transaction after receiving the deposit. If the transaction cannot be completed due to the buyer or lessee without a defect in the property, the deposit will not be returned. If the failure of the transaction is not due to any of the parties, the deposit must be returned to the person who paid it.

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4. Real Estate Broker's Rights

It is important for everyone to know that a real estate broker may not hold the deposit as security for his or her right to the transaction. In the event that the deposit is due to the seller or lessor without the completion of the real estate transaction, the real estate broker is entitled to receive a commission estimated at (25%) of the value of the deposit, unless otherwise agreed in the real estate brokerage contract.

These provisions are a step forward in the real estate brokerage contract. <These provisions are an important step towards regulating real estate brokerage operations and ensuring the rights of all parties involved. Through these regulations, transparency can be enhanced, providing a safer and more reliable real estate environment.

These provisions are an important step towards regulating real estate brokerage operations and ensuring the rights of all parties involved.