Real estate cover-up in disguise. <From «»The Guardian« to »The Offending Broker"

Hand over the key and relax, the license is in the wind

God's Suffering Guest

Despite the efforts of the blessed state - supported by God - in regulating the real estate market through strict regulations, approved licenses, and effective monitoring, some individual practices still constitute a serious loophole that threatens this organized construction and opens the door to cover-ups and violations.

<One of the most prominent of these unfortunate practices is that some owners hand over their properties to people who do not have any legal status or professional license, whether in management, supervision or negotiation. It has even reached the point of enabling individuals with a »visit visa« or professional classifications unrelated to the sector - such as »private driver" - to manage properties for amounts reaching millions, without any legal guarantee or legal accountability.

The most prominent of these regrettable practices is that some owners hand over their properties to people who do not have any legal status or professional license, whether in management, supervision or negotiation.

A disturbing paradox: The licensed are marginalized ... and the violator is trusted!

Despite the existence of licensed institutions and real estate offices, which have regular licenses, are subject to oversight, and abide by regulations, some owners bypass these authorities, preferring to deal with individuals who are not known about anything, no record, no address, and no legal status.

On the other hand, licensed entities are marginalized... and violators are trusted! On the other hand, licensed entities adhere to a number of approved requirements, including:

Official commercial registration.

<Municipal and safety license from the Civil Defense. Criminal record clearance certificate.

<Subscription to the Shamoos security system. <VAL license from the General Real Estate Authority. <Permits for property and facilities management. <However, these entities are sometimes disqualified in favor of those who only have »personal trust« without any legal cover!

»"" offending guard«... a cover for irregular mediation

One of the most prominent forms of concealment is handing over the keys of the property to violators under the cover of a »property guard«, without any legal documentation, a notarized contract, or a legal residency linking them to the owner or the property.

It is noted that many of these people:

There is no proof of residence within the real estate unit

<There is no documented legal relationship (residence or employment) between them and the owner. <Nevertheless, he acts in the property as an intermediary, receiving tenants, showing units, and negotiating on behalf of the owner! In addition, this category:

Additionally, this category:

Additionally, this category:

They obstruct access to the property for regular offices when requesting an inspection.

<They refuse to cooperate with licensed brokers. <Exercise illicit influence that violates regulations and weakens legitimate institutions in front of the investor and tenant. Thus, real estate brokerage is granted to those who do not have the status, while the regular ones are fought and prevented from practicing their role, despite their legal and financial obligations.

Monetary pursuit... a loophole that empowers violators and fuels concealment

One of the most serious financial imbalances in the market is the payment of real estate in cash (cash) to unlicensed individuals, without any bank documentation or official reference.

This opens the door wide open for:

Financial concealment. <Financial concealment. <Lack of accountability. <Loss of rights. <The passage of money whose sources and destinations are unknown.

Regulatory proposal:

To protect the market from this loophole, we propose the following:

Requiring the release of the real estate quest with a bank check in the name of the regulated broker only.

<Completely ban cash transactions in this field. Requiring banks not to disburse any "quest« check unless a valid VAL license is presented.

<Refuse to disburse to any entity or individual who does not hold a regular real estate license. Recommendations to protect the market from tampering:

1. Impose financial penalties on owners or buyers who are proven to deal with unlicensed brokers.
2. Link real estate emptying procedures to the existence of a documented brokerage contract through the General Real Estate Authority website.
3. Restrict the disbursement of quest checks to the necessity of presenting a VAL license.
4. Implementing national awareness campaigns for owners and investors on the importance of adhering to the legal brokerage system.
5. Providing official incentives for those dealing with licensed brokers.
6. Protect the professional rights of licensed offices and institutions, and enhance their presence in the market.

In conclusion:

The Saudi real estate market is witnessing a qualitative shift towards governance, control and regulation, and this shift must be accompanied by full awareness from all parties, whether owners, investors or dealers in the sector.

Real estate is not just a door.

Real estate is not just a door that closes or a key that is handed over... it is a legal responsibility and a professional trust that is only granted to those who deserve it and clearly carry its legal status.

Real Estate Broker and Expert