Mohammad Al-Ghamdi Okaz/Saudi Gazette RIYADH — The new law for the operation of real estate offices envisages strict action against erring establishments including warnings and imposition of fines. Establishments found guilty of repeat violations may also face closure according to the new law awaiting approval from the higher authorities. The 11-clause law, already approved by the Shoura Council, also stipulates that the establishment's owner or the manager be a Saudi with no criminal record. Besides, he has no other business activity other than real estate. The law consists of the following 11 clauses: 1) Real estate offices should only offer marketing, sale, purchase, rental appraisal and management services. 2) License from competent authorities is a must for real estate service providers. 3) Real estate offices should have a commercial registration, they should be run by Saudis and the owner or the manager should not have been involved in a criminal activity. 4) A real estate office should not indulge in any other business activity except to deal in the real estate. It should sell, purchase, or manage any real estate only after verifying the ownership deed and it should maintain records of all transactions. 5) All business contracts should be on the office letterhead clearly identifying the rights and commitments of the parties. 6) The establishment should implement the unified rental contracts prepared by the Ministry of Commerce and Industry and all real estate offices should electronically establish link to the concerned security agencies. 7) Real estate commission should not exceed 2.5% of the transacted deal. 8) Without prejudice to other regulations of more severe penalties, or to the compensation rights of others, a violator of this law will be penalized by either a warning, a fine not exceeding SR100,000 and closure of the office for a period not exceeding a year. Violators may also see their licenses withdrawn and the decision on any penalty imposed will be published in at least one newspaper at the expense of the violator. 9) Controlling and monitoring the penalties will be carried out by employees designated by the minister of commerce and industry. 10) The minster will issue the operational list of this law within 60 days of its publication in the official gazette and 11) The law becomes effective after 90 days of its publication in the official gazette. The new law overrides all the existing regulations.
