"Ejar" violates 41 real estate offices. | Ministry of Housing

Ministry of Housing

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Tuesday 22 Dhu al-Hijja 1441 on August 11, 2020

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22/4/1440 -on- 30/12/2018 "Ejar" violates 41 real estate offices.

For non-commitment to register contracts ... And exceeded the proportion of "commission".
"Ejar" violates 41 real estate offices.

The Ministry of Housing's "Ejar" program imposed fines on 41 real estate establishments, following the ascertain violations, most of which were the registration of residential contracts outside the Ejar services network, in addition to other violations such as exceeding the commission 2.5% of the contract value, and practicing commercial activity not included in the business registry of the establishment, and other irregularities.


These violations were monitored during the rounds of the control and supervision teams in the "ejar" program, which amounted to more than 16 thousand tour of real estate brokerage facilities in various regions of the Kingdom, where the rounds of visits between awareness and inspection visits, as well as in response to communications against other facilities.
The General Supervisor of the real estate organization, Mazen Mohammed Al-Daoud, confirmed that the approval of the financial penalties for the real estate brokerage companies in violation is part of the Ministry of Housing's efforts to regulate the real estate brokerage sector and ensure its application to the rules and regulations, and contribute to improving the quality of its services, and to preserve the parties to the tenancy process rights(tenant ,landlord, Real Estate Broker),which leads to increase the level of trust and reliability in the sector.


Al-Daoud indicated that the main objective of the field tours of the control and supervision teams is to raise awareness of the real estate establishments and assist them in developing their business and expanding their functions in terms of their business organization, providing the best services and upgrading them to attain the satisfaction of consumers from lessors, tenants and investors. Moreover, raising the operational efficiency of the real estate establishments, in addition to ensuring the application of the rules and regulations.

It should be noted that penalties and fines apply to real estate brokerage facilities when they violate the decision of the Council of Ministers No. 405, which obligates real estate brokers to use the e-services for ejar services (ejar.sa) In addition to the regulations of the real estate offices mentioned in the Council of Ministers' Resolution No. (334). The regulation affirmed that no office can carry out any business other than its real estate activity specified in the Commercial Register. Moreover, the commission does not exceed 2.5% of one year rent even if the contract is for a longer period or has been renewed automatically according to the prior agreement at the time of the contract. It also requires the identification of the party carrying the office commission. The regulation of real estate offices indicated the penalties and their types so that the fine does not exceed more than 25 thousand riyals. The closure of the Office for a period not exceeding one year and the final revocation of the Bureau's authorization.

The tenant or landlord can submit a report via "real estate intermediaries" and send it to the supervision and control team in a "ejar" program. The approved real estate facility can update its data in the application, making it easier for the lessee and landlord to reach the facility.

The launch of the ejar network came in accordance with Cabinet Resolution No. 131 establishing an electronic network for rental services to facilitate and establish lease transactions, enhance trust between the parties and record their obligations. The "ejar" provides a number of advantages to the parties to the leasing process, the program contributed to the rehabilitation of real estate brokerage facilities and enabled them to use the electronic network of rental services through the establishment of several workshops in all regions of the Kingdom, in addition to awareness of rules and regulations.