Real estate seeking or mediation is known as a process of completing a sale or lease for a fee paid conditional on achieving the result.<\/p>\n\n\n\n
The first article of the Real Estate Mediation System issued by Royal Decree No. (M\/130) dated 1443\/11\/30 AH, stipulated that the mediation contract is an agreement between the real estate mediator and the party benefiting from the real estate mediation; to complete a real estate transaction or provide real estate services. It was also stipulated in that article that the real estate mediator is a natural or legal person authorized to practice real estate mediation or provide real estate services in accordance with the provisions of the system.
The introduction of a legal agent or the owner of the property or the company that owns the property has become very common in the real estate brokerage industry. Here, the problem appears clearly in several forms; the agent may take over the sale of the property and then claim a percentage of the transaction value as a commission, or one of the owner\u2019s subordinates may interfere in presenting the property to the brokers, then mention the remuneration of the brokerage commission.<\/p>\n\n\n\n
The legal interpretation of this issue is based on discrimination in \u201ccharacter.\u201d The legal agent, regardless of the negotiation procedures he undertakes to complete the sale, remains before the system as the representative of the original owner; similarly, the owner and his successors do not acquire the status of a third party, as they are not independent parties to the contractual process.<\/p>\n\n\n\n
The intermediary (the third party) who does not represent the owner nor the buyer is one who stands outside this contractual relationship, and plays an independent role in connecting the two parties without being biased towards any of the parties. For this purpose, to prevent the emergence of illegal practices in real estate and to reduce disputes involving parties who are not entitled to commission for seeking, the Supreme Court of the Kingdom decided that: (the real estate seller and the agent of sale are not entitled to commission; because the commission is due to a third party who facilitated the sale between the seller and the buyer) Supreme Court Decision No. (3\/3\/19) dated 9\/9\/1430 AH: (Principles and Decisions p. 40). .<\/p>\n\n\n\n
Fahad-fmg@hotmail.com<\/a><\/p>","protected":false},"excerpt":{"rendered":" Reading time: <\/span> < 1<\/span> Minute<\/span><\/span>Real estate brokerage or mediation is defined as the process of completing a sale or lease for a sum of money paid conditional on achieving the result. The first article of the Real Estate Brokerage Law issued by Royal Decree No. (M\/130) dated 11\/30\/1443 AH, defines the mediation contract: It is an agreement between the real estate broker and the party benefiting from the real estate brokerage; to complete a real estate transaction or provide a service ... 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