The new real estate brokerage legislation and its corresponding executive rules were adopted by the Cabinet on Wednesday. This effectively invalidates the 1398AH law’s prohibition on the establishment of real estate offices.
The real estate brokerage legislation provides present professionals who offer brokerage and real estate services six months (180 days) to organize and improve their status, according to Abdullah Al-Hammad, CEO of the Real Estate General Authority. The duration of this time will finish on Dhul-al-Hijjah 30, 1444 AH.
Al-Hammad asserted that no fees are necessary for the services associated with the issuance of obligatory licences to engage in real estate brokerage and marketing during the period of rectification. The authority was tasked with promoting real estate brokerage activity and enabling real estate professionals to carry on with their line of work in compliance with the new law.
Al-Hammad claimed that the law will safeguard the rights of real estate dealers who adhere to the laws and have the required permissions to conduct business, assist assure the correctness of real estate transactions, and enhance the caliber of services.
He claims that all real estate-related activities and services are covered by the legislation, including e-brokerage services offered through modern technological platforms like websites and social media as well as traditional brokerage activities necessary to finalize real estate agreements.
The authority has launched several programs and strategies to promote real estate brokerage services. Some of these include the processing of reports and complaints, the creation of required standards and controls for real estate brokerage practice, and the creation of the processes for apprehending real estate criminals. Another is using mandatory contract clauses.
The law strives to organize the real estate brokerage sector by providing cutting-edge real estate services, improving transaction quality, increasing the sustainability of real estate assets, minimizing disputes, and boosting the transparency of real estate agreements.
The most noteworthy parts of the legislation include limiting real estate brokerage activity to authority licensees, defining the deposit percentage for a real estate transaction, creating controls for doing so, and implementing compliance standards in the real estate market.
