The Real Estate Brokerage Law of 1443H changed the rules: brokers must be licensed by the Real Estate General Authority (REGA), brokerage requires a written contract, and property advertising is regulated.
Key rules
| Rule | What it means |
|---|---|
| Licensing | No brokerage or property marketing without a REGA licence |
| Brokerage contract | In writing: property, term, commission and who pays |
| Advertising | Only with the owner's authorisation and required details |
| Disclosure | The broker must disclose known defects and any personal interest |
Check the current official text and regulations for commission details.
When is commission earned?
- As a rule, when the deal completes because of the broker's work, as the contract states.
- An unlicensed broker cannot claim commission.
Before signing with a broker
- Verify the licence on REGA's platforms.
- Check the term and whether it is exclusive.
- Fix the commission, who pays and when.
- Never pay a deposit to the broker without a receipt stating it is held for the seller.
- Check the deed first. Read checking a property deed.
See also the property sale contract template and the Ejar lease for rentals.
A dispute with a broker?
Usus Law Firm handles real estate cases and reviews brokerage and sale contracts, in Riyadh and Tabuk, and advises in English.
This article is general legal information and is not a substitute for advice on your specific case. Court proceedings in Saudi Arabia are in Arabic; the official Arabic text of each law prevails.
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