Saudi Arabia drafts new real estate brokerage rules

According to the draft seen by local property professionals, the new regulation would not replace the 2017 real estate law, but complement it with a narrower framework for brokerage. It would define a sales agent as an individual working through, or contracted by, a licensed broker to help conclude purchase or lease deals, a category that was previously less clearly set out.

The proposal also raises the bar for licensing, requiring good conduct, no bankruptcy, practical experience and completion of specialized courses and exams run by the Real Estate General Authority. Brokers would be required to list all related social-media accounts in their license applications and transaction records, a sign regulators want closer oversight of property advertising and digital lead generation.

The draft further details brokerage agreements, including when sales and rental commissions are due, how multiple brokers are handled and when commissions can be forfeited. It would also introduce a dedicated professional bank account for brokerage work to help protect client money and commissions, while adding anti-money-laundering controls such as a compliance officer, due diligence, record-keeping and immediate reporting of suspicious activity.

For investors, the update points to a more regulated and potentially more transparent property market, which could support transaction confidence and reduce settlement risk over time. It may also squeeze smaller or less formal operators who rely on looser practices, while favoring licensed firms that can absorb compliance costs and benefit from clearer rules on fees and agency relationships.

The broader backdrop is a regional real estate sector under pressure to balance development ambitions with consumer protection and legal clarity. In the near term, the market will focus on the final wording of the 2026 regulation and how aggressively authorities enforce the new rules once brokerage registration, marketing and commission practices are brought under tighter supervision.