On Wednesday, the Cabinet approved a new real estate brokerage law and its implementing executive regulations. This effectively negates the regulation for setting up real estate offices that were enacted in 1398AH.
According to Abdullah Al-Hammad, CEO of the Real Estate General Authority, the real estate brokerage law gives current professionals who provide brokerage and real estate services six months (180 days) to organize and improve their situation. This period will end on the 30th of Dhul Al-Hijjah 1444AH.
Al-Hammad claimed that throughout the period of correction, no payments are required for the services related to the issuing of mandatory permits to participate in real estate brokerage and marketing. This fell under the authority’s responsibility to encourage real estate brokerage activity and allow real estate professionals to continue practising their profession in accordance with the new law.
According to Al-Hammad, the law would help ensure the accuracy of real estate transactions, improve the quality of services, and protect the rights of real estate traders who follow the rules and have the appropriate permits to carry out their business.
According to him, the law includes all real estate-related activities and services, including brokerage activity required to close real estate deals and e-brokerage services provided via contemporary technical platforms like websites and social media.
To encourage real estate brokerage services, the authority has created a number of initiatives and methods. The preparation of mandatory standards and controls for real estate brokerage practice, the preparation of the procedures for arresting real estate offenders, and the processing of reports and complaints are a few of them. Mandatory contract forms are another.
By offering cutting-edge real estate services, improving transaction quality, enhancing the sustainability of real estate assets, lowering conflicts, and increasing the openness of real estate deals, the law seeks to organize the real estate brokerage industry.
The law’s most notable provisions include limiting the practice of real estate brokerage activity to licensees from the authority, defining the deposit proportion for a real estate deal, establishing controls for doing so, and implementing compliance regulations in the real estate market.