Comprehensive infographic on the Real Estate Mediation System: Definition, Mandatory Licensing, Contract and Commission Regulations, and Penalties up to SAR 200,000.
- Objective of the System: Regulates real estate mediation and real estate services, applying to anyone practicing, undertaking, or benefiting from them.
- Definition: The activity of mediating the completion of a real estate transaction between its parties in exchange for a commission, including electronic mediation via websites and platforms.
- Mandatory Licensing: Real estate mediation may not be practiced without obtaining a license from the Authority.
- Written Contract: The mediation contract must be documented and a copy deposited with the Authority; it is not considered valid until deposited.
- Contract Duration: The mediation contract has a fixed term. If no term is agreed upon, it is deemed to be (90) days from its conclusion.
- Electronic Registration: The mediator must register mediation contracts and transactions on their electronic platform.
- Commission: (0.5%) of the transaction value for sales, or for the first year's rent for leases, unless otherwise agreed in writing.
- Party Paying the Commission: The party contracting with the mediator in the mediation contract.
- Penalties: Mandatory compliance, suspension of the license for up to (6) months, cancellation of the license, and a fine of up to (200,000) SAR, with the fine doubled in case of recurrence within (3) years.
Regulatory Reference: Real Estate Mediation System
Source: Official firm post on X — View Original Post