The Public Authority for Real Estate has invited the competent authorities in the municipal services, planning and urban development sector to express their views on the draft classification table of violations of the statutory provisions regulating the relationship between the lessor and the lessee, during the period from 14 to 29 October 2025.

The project comes based on the decisions to control the rental relationship, and based on Clause (IX) of the statutory provisions

. The Authority explained that the project comes based on the decisions to control the rental relationship, and based on Article (IX) of the statutory provisions, with the aim of defining the types of violations and setting clear penalties for them in order to ensure justice and transparency in real estate transactions and preserve the rights of all parties.

4 major violations and escalating penalties

The draft schedule includes four major violations that have been categorized with varying penalties according to frequency, the most prominent of which are as follows:

1. Increasing the rent without justification: It includes cases where the lessor increases the total rent of the property in Riyadh city, whether in existing or new contracts, and the penalties reach 12 months" rent in case of repeated violations, after starting with 2 months" rent for the first time and 6 months for the second time, with the lessor obliged to correct the situation in all cases.
2. Renting a vacant property at a higher price than the last contract: The same penalties apply, with the aim of preventing overpricing and maintaining the stability of the rental market.
3. Failure to register the contract in the electronic rental network: The landlord will be penalized the first time with a warning and correction of the violation, then with a fine equivalent to 3 months“ rent in the second time and 6 months in the third time, emphasizing the importance of documenting contracts electronically to ensure rights.
5. Obliging the tenant to vacate the property without a legal reason: If the landlord refuses to renew the contract or demands eviction without the legally permitted cases, escalating fines will be imposed starting from two months” rent up to 12 months in case of repeated violations.

Market balance and ensuring fairness

The Authority pointed out that the aim of this project is to achieve balance in the contractual relationship between landlord and tenant, and set clear standards of accountability to minimize disputes and enhance confidence in the rental market, especially in Riyadh, which is witnessing urban expansion and rapid growth in demand for residential units.

Riyadh Real Estate Authority (RERA) stressed that the project is aimed at ensuring balance in the market and ensuring fairness. "Real Estate" stressed that the presentation of the project for public discussion reflects its commitment to the principle of transparency and partnership with the public and private sectors, in preparation for the approval of the schedule of penalties in its final form during the coming period, to be a regulatory tool that supports stability and balance in the Saudi rental market.