In the name of Allah, the Most Gracious, the Most Merciful
Royal Decree No. (M/130) dated 30/11/1443 AH
With the help of Allah the Exalted
Pursuant to Article (Seventy) of theBasic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH.
And pursuant to Article (Twenty) of theCouncil of Ministers Law, issued by Royal Order No. (A/13) dated 3/3/1414 AH.
And pursuant to Article (Eighteen) of theShura Council Law, issued by Royal Order No. (A/91) dated 27/8/1412 AH.
After reviewing Shura Council Decision No. (70/13) dated 2/5/1443 AH.
After reviewing Council of Ministers Decision No. (679) dated 29/11/1443 AH.We, Salman bin Abdulaziz Al Saud
King of the Kingdom of Saudi Arabia
Have decreed the following:
First:Approval of the Real Estate Brokerage Law, in the attached form.
Second:Real estate brokers and real estate service providers practicing the activity at the time of the law’s entry into force - referred to in paragraph (First) of this decree - shall regulate their status in accordance with its provisions within (180) days from the date of its entry into force.
Third:His Highness the Deputy Prime Minister, the Ministers, and the heads of the relevant independent bodies - each within their jurisdiction - shall implement this decree.
Salman bin Abdulaziz Al Saud
In the name of Allah, the Most Gracious, the Most Merciful
Council of Ministers Decision No. (679) dated 29/11/1443 AH
The Council of Ministers
Having reviewed the correspondence received from the Royal Court No. 29605 dated 10/5/1443 AH, including the letter of the Real Estate General Authority No. 240191 dated 28/10/1440 AH, regarding the draft Real Estate Brokerage Law.
After reviewingthe aforementioned draft law.
After reviewingtheRegulation of Real Estate Officesissued by Council of Ministers Decision No. (334) dated 7/3/1398 AH.
After reviewingtheRegulation of the Real Estate General Authorityissued by Council of Ministers Decision No. (239) dated 25/4/1438 AH.
After reviewingthe minutes No. (72) dated 17/2/1442 AH, No. (484) dated 1/8/1442 AH, No. (744) dated 26/12/1442 AH, and No. (408) dated 9/9/1443 AH, prepared by the Bureau of Experts at the Council of Ministers.
After reviewingthe recommendation prepared by the Council of Economic and Development Affairs No. (11 - 46/43/D) dated 11/10/1443 AH.
After consideringShura Council Decision No. (70/13) dated 2/5/1443 AH.
After reviewingthe recommendation of the General Committee of the Council of Ministers No. (10288) dated 23/11/1443 AH.After reviewing
It is decided as follows:
First:Approval of the Real Estate Brokerage Law, in the attached form.
Second:Real estate brokers and real estate service providers practicing the activity at the time of the law’s entry into force - referred to in paragraph (First) of this decision - shall regulate their status in accordance with its provisions within (180) days from the date of its entry into force.
A draft Royal Decree to that effect has been prepared, its text is attached hereto.
Third:The exercise by the Board of Directors of the Real Estate General Authority of its powers stipulated in paragraph (3) of Article (Six) of the law - referred to in paragraph (First) of this decision - shall be in agreement with the Ministry of Finance and the Non-Oil Revenues Development Center, until the issuance and implementation of the (Regulation on the Practice of Public Authorities and Institutions and Equivalent Entities Imposing Fees for Services and Works Provided).Prime Minister
Real Estate Brokerage Law and its Executive Regulation
Article 1
For the application of this Law, the following words and phrases shall have the meanings assigned thereto, unless the context requires otherwise:
Law: Real Estate Brokerage Law.
Regulations: Implementing Regulations of this Law.
REGA: Real Estate General Authority.
Board: REGA’s Board of Directors.
Real Estate Brokerage: Acting as an intermediary between parties in concluding a real estate transaction for a commission. It shall include brokerage conducted through electronic means, such as websites, social media platforms, and the like.
Real Estate Services: Activities relating to the marketing, management, lease, and sale of real estate as well as the sale of its usufruct, including real estate marketing, property management, facility management, real estate auctions, real estate advertisements, and real estate analysis and consultancy.
Complementary Real Estate Services: Activities licensed under specific laws.
Real Estate Transactions: The sale, purchase, or lease of a real estate or its usufruct.
Brokerage Contract: An agreement between the real estate broker and the beneficiary of real estate brokerage to conclude a real estate transaction or provide a real estate service.
Real Estate Broker: A natural or legal person licensed to practice real estate brokerage or provide real estate services in accordance with this Law.
Commission: An amount of money the real estate broker is entitled to in return for real estate brokerage.
Real Estate Marketing: Promotion of a real estate product through advertisements and promotional means.
Property Management: Managing the financial and administrative affairs of a real estate on behalf of its owner or usufructuary.
Facility Management: Managing the technical affairs of a real estate on behalf of its owner or usufructuary, including the management of its utilities such as water, gas, electricity, air conditioning, telephone, computer networks, television, sewage, rainwater drainage, waste disposal, as well as the delivery of mail, parcels, goods, and the like.
Real Estate Auctions: Public auctions held for the sale or lease of the real estate or the sale of its usufruct to the highest bidder, including electronic auctions.
Security deposit: An amount of money paid by the lessee as security to compensate the owner or usufructuary of a real estate for any damage to the real estate caused by the lessee during the lease term.
Article 2
This Law aims to regulate real estate brokerage and real estate services.
Article 3
The provisions of this Law shall apply to any person who practices, engages in, or benefits from real estate brokerage and real estate services.
Article 4
1. Engaging in real estate brokerage or providing real estate services shall not be permissible without obtaining a license from REGA. The Regulations shall determine the license’s provisions, conditions, procedures, term, and renewal.
2. The real estate broker may, upon obtaining a license from the competent authority and subject to the rules specified by the Regulations, provide complementary real estate services in accordance with Article 6(6) of this Law.
Article 5
REGA shall undertake the following:
1. Preparing the mandatory and uniform contracts forms provided for in this Law.
2. Developing programs and mechanisms to promote real estate brokerage and real estate services covered by this Law.
3. Determining the requirements and criteria for real estate marketing means.
4. Setting standards and controls for practicing real estate brokerage.
5. Developing procedures for detecting and recording violations and responding to reports and complaints.
Article 6
The Board shall assume the following duties:
1. Approving the regulations governing the activities and services falling within REGA’s jurisdiction in accordance with this Law.
2. Adopting the rules and controls for practicing real estate brokerage.
3. Determining the fees for the issuance or renewal of licenses by REGA pursuant to this Law.
4. Adopting procedures for detecting and recording violations and responding to reports and complaints.
5. Determining the real estate services a real estate broker may provide as well as relevant controls and conditions.
6. Determining the complementary real estate services a real estate broker may provide, in coordination with relevant licensing authorities.
Article 7
1. The brokerage contract must be in writing, and the broker shall deposit a copy thereof with REGA; failure to deposit a copy of the contract shall render such contract unenforceable. The Regulations shall specify the depositing procedures.
2. The brokerage contract must be for a definite term. If the term is not stipulated in the contract, it shall be for 90 days from the date the contract is concluded.
Article 8
The real estate broker may enter into a contract with one or more real estate brokers to broker the real estate subject of the brokerage contract in accordance with the terms of such contract, unless such contract stipulates otherwise.
Article 9
The real estate broker shall, upon concluding a brokerage contract with the owner or usufructuary of a real estate, obtain a copy of the proof of ownership of the real estate or of the usufruct as well as the information and documents specified by the Regulations.