The Public Authority for Real Estate Public Authority for Real Estate has clarified the penalties for violating the provisions for regulating the relationship between the lessor and the tenant in Riyadh city, which was approved by the Council of Ministers.

The Authority said in a statement that those who violate these procedures will be punished with a fine of up to 12 months" rent, with the obligation to correct the violation without prejudice to the right of the affected person to seek compensation.

1. The lessor's increase in the value of the total rent of the property in the city of Riyadh, in contracts existing at the time of the entry into force of the provisions, or concluded after their entry into force.
2. An increase in the gross rent of the vacant property in Riyadh city from the value of the last lease contract.
3. Failure of the lessor in a lease contract that is not registered in the electronic network for rental services to apply for registration of the contract in the network.
4. 4. Failure of the lessor in Riyadh city to renew the lease contract, and forcing the tenant to vacate the property in cases other than those specified in the provisions.

A reward of up to 20% of the value of the fine collected is granted to those who report any violation of these provisions, if they provide information that led to the issuance of a final decision proving the violation, and the report is submitted through the reports page on the official website of the General Real Estate Authority.

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Enforcement and Governance Mechanism

To ensure that these provisions are applied effectively and achieve their objectives, a clear governance framework has been established based on the following:

• Role of the Public Authority for Real Estate

<The Authority is responsible for implementing these provisions, monitoring the real estate market, and considering objections submitted by lessors in accordance with the approved mechanisms and controls. The Authority also submits periodic reports on the impact of the implementation of the provisions and the challenges it faces to ensure continuous development.

• Competent Committees

The committees formed under the Real Estate Brokerage Law are responsible for examining violations of these provisions and imposing the stipulated fines, ensuring that there is a specialized and impartial body to deal with violations.