In order to regulate the real estate market and enhance trust between the parties, The General Authority for Real Estate has developed a clear framework for real estate brokerage contracts, defining their types and basic conditions to ensure transparency and professionalism.
With the increase in transactions in the real estate sector in Saudi Arabia, real estate brokerage has become the cornerstone for the success of deals, whether for sale, rental or investment.
With the increase in transactions in the real estate sector in the Kingdom, real estate brokerage has become a cornerstone in the success of transactions, whether it is sale, rental or investment. Therefore, the General Authority for Real Estate has clarified the types of real estate brokerage contracts and the requirements for their conclusion, which ensure the preservation of rights for all parties, and achieve discipline in real estate practices.
What are the requirements for concluding a brokerage contract? To ensure the validity and integrity of a mediation contract, there are 3 basic requirements:
An active real estate brokerage and marketing license
Whether the broker is an individual or an organization, the activity cannot be practiced without obtaining the official license from the Authority.
<Availability of basic data of the parties to the contract
This includes the data of the property owner, tenant, seller, or buyer, such as national ID, commercial registration number, or unified number for establishments.
<Basic data of the contracted property
Whether it is a sale or lease, all specifications and information about the property must be available.
🔸 Types of real estate brokerage contracts:
1. Real estate brokerage contract with the owner
It gives the broker the right to market the property in agreement with the owner, and requires:
A brokerage license is available.
Attaching property data.
The contract is concluded and documented through the electronic real estate brokerage platform.
2. Brokerage contract between the buyer or tenant and the broker
It is entered into when the buyer or tenant is looking for a specific property with specific specifications, and the broker is obliged to search for suitable options.
Requires a license. License required.
The contract is documented on the platform.
3. Real Estate Auctions Contract
Regulates the relationship between the broker and the owners if a property is offered for sale through an auction.
License required.
Registering the contract through the platform.
4. Real estate consulting contract
An agreement to provide specialized consulting services in the real estate market, including:
Analyzing investment opportunities.
Providing recommendations on planning and development.
Documented via the platform.
5. Intermediary-to-intermediary contract
Regulates the relationship between two brokers in the execution of a particular transaction, including the distribution of commissions and the organization of the roles of each party.
<Both brokers must be licensed. <Must be documented to ensure transparency.
Integrated regulation that preserves rights and promotes trust
This classification and regulation represents a qualitative leap in the real estate brokerage sector in the Kingdom, as it provides customers with various options with legal clarity, and contributes to raising market efficiency and achieving real estate security.
