The new table includes the referral of four serious violations to the Public Prosecution for investigation and prosecution before the competent court. The new schedule included referring four serious violations to the Public Prosecution for investigation and prosecution before the competent court, including:
Referral of four serious violations to the Public Prosecution for investigation and prosecution before the competent court.
- Offering, advertising or marketing real estate contributions or raising funds for them without a license from the Authority or the approval of the Capital Market Authority.
- The licensee or the manager of the contribution takes any decision involving an existing or potential conflict of interest without complying with the controls for handling such cases.
- Selling real estate assets without a certified appraisal from licensed appraisers.
- Not depositing the financial returns of the contribution directly into the escrow account.
The table also stipulates fines ranging from 10,000 to 30,000 riyals for the license applicant or practitioner who provides misleading information, with the possibility of banning him from practicing any work related to real estate contributions for up to 5 years.
The table also stipulates fines ranging from 10,000 to 30,000 riyals for the license applicant or practitioner who provides misleading information. If the licensee, engineering consultant or chartered accountant lends from the share capital, a fine of 1% of the amount borrowed and a maximum of SAR 1 million will be imposed, and the licensee will be suspended from any real estate activity for a period not exceeding 5 years.
For the property owner who provides misleading information, a fine of 1% of the amount borrowed and a maximum of SAR 1 million will be imposed. As for the property owner who does not transfer the property to the shareholding after licensing, he is fined 0.5% of the property value and a maximum of 500 thousand riyals, and the penalty increases to 2% and a maximum of one million riyals if the in-kind share is disposed of within the period specified in the law."
The penalties also include a fine of 0.5% of the borrowed amount and a maximum of one million riyals. The penalties also include a fine of up to 50,000 riyals for anyone who obstructs the procedures for removing the director of the shareholding or disrupts his work or the work of the consultant and the legal accountant, with the possibility of banning him from practicing any real estate activity for up to 4 years, in addition to a fine of 10% of the value of unauthorized borrowing or allocated for irregular purposes, with a maximum of 5 million riyals.
The table also penalizes the collection of a fine of up to 500,000 riyals of the value of the property. The schedule also penalizes the collection of any amounts outside the escrow account with a fine of 5% of the amount collected and a maximum of 5 million riyals, in addition to banning the violator from working in real estate contributions for up to 5 years.
The law obliges the licensee to disclose to shareholders any material changes, otherwise he is subject to a fine between 10 thousand and 70 thousand riyals depending on the size of the contribution, with a ban on practicing the activity for a period of up to 4 years.
The law also specified fines between 3,000 and 70,000 riyals for 11 other violations, including:
- Failure to submit periodic reports to shareholders.
- Failure of the consultant or accountant to supervise or report violations.
- Signing disbursement documents in violation of regulations.
- Failure to deposit the contribution funds in the escrow account.
- Failing to disclose profit distribution decisions or failing to distribute them after they have been approved.
- Making misleading statements or preventing control officers from performing their duties.
