Introduction

The General Administration of Real Estate announced the start of the application of work in real estate brokerage and services in accordance with the real estate brokerage system, which was approved by the Council of Ministers, and the corrective period provided to real estate brokers to organize and correct their conditions in accordance with it expired yesterday.

The Real Estate Brokerage System

The authorities said the system includes 7 real estate activities for licensed institutions: real estate brokerage, real estate marketing activities, property management activities, property management activities, real estate auction activities, real estate advertising activities, and real estate consulting and analysis activities, while the work of individuals is limited to only four of them: mediation, marketing, advertising, and providing real estate consultation and analysis.

Requirements for Real Estate Brokers

The authorities clarified that this activity is carried out exclusively by real estate brokers, licensed and qualified service providers from institutions and individuals, noting that they are required under the system to work in accordance with the forms of the mediation agreement approved by the authorities, and require them to issue a license for each advertisement in accordance with the approved form on the authority’s electronic services platform if it intends to advertise itself.

Transparency and Confidentiality Obligations

Each licensee is also required to disclose and be transparent, explaining in writing to the parties to a real estate mediation agreement when there is a potential for a conflict of interest, or if he is an intermediary for both parties at the same time, and to inform the parties to a real estate transaction of all his information, data and documents related to the real estate transaction, and not to mediate in the completion of any real estate transaction in which he in any way has conflicting interests; Except in cases where the written consent of the parties to the transaction is received, and the broker is obliged to maintain the confidentiality of the data received by him, according to the authorized body.

Electronic Licenses and Training Courses

The authorities have confirmed that practicing real estate brokers and real estate service providers can now issue and renew licenses electronically, enter into mediation contracts, and issue advertising licenses electronically through a real estate broker e-services platform.

The Authority has also provided 3 training courses through the Saudi Real Estate Institute to improve the skills of those who wish to fulfill the qualification requirements for obtaining a real estate license “Fal”. The service “Keep Guarantee Amount” was also available through “Ejar”, a service whereby the amount of the guarantee (insurance) is saved with “Ejar” to compensate the property owner for any damage that may be caused to the property during the tenant’s use of the rental premises as one of the requirements of the real estate brokerage system and its implementation rules.

Future Developments and Violation Monitoring

During this period, the Authority has made it possible to issue all licenses except for the real estate auction license and the real estate consulting and analysis license, the availability of which will be announced in the coming period, in addition to the fact that by the end of the first quarter of 2024 AD, more than 40 services are planned to be developed, including platforms for providing real estate services, documenting transaction agreements, down payment, quest and others, in order to continuously improve and develop the service for beneficiaries and partners.

From today, the body will start implementing the list of violations through monitoring and compliance work, which is carried out in four main areas: monitoring groups of the body, joint monitoring campaigns with relevant state bodies, in addition to the electronic control channel and the channel for responding to messages presented on the platform of the body.

Compliance and Reporting Obligations

The Authority has called on all real estate brokers and service providers to abide by and not violate the rules of the system, and not to take any action or refrain from any action that may prejudice the interests of those who deal with it or contravene the provisions of the system, and to inform the authority of any amendment or change related to real estate brokerage practices, and to register all brokerage agreements it has entered into and all real estate transactions it enters into on an electronic platform, and to enable monitoring and compliance teams do their job and facilitate their tasks, and this includes logging into their workplace and providing them with documents and licenses. And related documents, as well as viewing violations that result in financial penalties or administrative procedures through the official website of the authority.

Conclusion

It is noteworthy that the system of real estate mediation, which has started to implement all its provisions today, aims to regulate the activities of real estate mediation, as well as to provide beneficiaries with innovative and quality real estate services.