New real estate brokerage law in Saudi Arabia
Last week, the law on real estate brokerage was published and will come into force in six months. The law will help regulate and improve this essential practice in the Kingdom.
Real estate brokerage has been defined as the mediation of the real estate transaction between the parties in exchange for a commission, including electronic mediation through technical means, such as websites, social media platforms, etc.
As for real estate services, these have been defined by law as real estate activities related to the ownership and marketing, management, sale and rental of its profit, including real estate marketing, property management, outsourcing, real estate auctions, real estate advertising, real estate advice and analysis.
The new law aims to regulate real estate brokerage and real estate services, where the provisions of the law will apply to anyone who engages in, deals with or benefits from real estate brokerage or real estate services.
In addition, real estate brokerage and real estate services may only be exercised or provided after obtaining a license from the General Real Estate Authority, whose regulations establish the terms, conditions, procedures, duration and renewal.
The brokerage contract must be in writing and the broker must file a copy of the contract with the authority.
The term of the contract must be a fixed term contract, and if the two parties do not agree on the term, the term will automatically be 90 days from the date of its last signature. In addition, when entering into a brokerage contract with the lessor or owner of the utilities, the real estate broker must obtain a copy of the proof of ownership of the property or ownership of the benefit, information and documents .
With regard to the obligation of the broker as set out in the law, the broker must carry out the activity of real estate brokerage by himself if he is a person, or through the intermediary of the responsible manager or the one of its licensed and licensed attorneys.
If the broker is a company with legal capacity, the broker must also refrain from any act that would harm the interests of its clients or any act that would violate or contradict the provisions of the law.
The broker must also inform the authority of any modification or change related to the exercise of the real estate brokerage activity, refrain from disclosing any secrecy of the transactions in question and take the necessary precautions to verify the accuracy of the information obtained. on the transaction. or transaction.
• Dimah Talal Alsharif is a Saudi lawyer and legal consultant. Twitter: @dimah_alsharif
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