Introduction

If you are considering buying, selling, or renting a property in Saudi Arabia, you are likely dealing with a real estate agent. But did you know that since 2020, real estate mediation has become an official system under the supervision of the Real Estate General Authority (REGA)? Let’s explore all the details about this system.

What is the Real Estate Mediation System?

The real estate mediation system is a legal framework that regulates the work of real estate agents and offices in the Kingdom. It was issued by a Cabinet decision and aims to regulate the mediation sector and protect the rights of all parties (buyer – seller – lessor – lessee). The system requires anyone practicing real estate mediation to obtain an official license from the Real Estate General Authority.

Who Oversees Real Estate Mediation?

  • Real Estate General Authority (REGA) — The entity responsible for regulating the entire sector and issuing licenses
  • Ministry of Municipal and Rural Affairs and Housing — Oversees general housing policies
  • Saudi Real Estate Institute (SREI) — Responsible for training and qualifying agents and granting professional certificates
  • Ministry of Commerce — Monitors the commercial activities of real estate offices

Requirements for Obtaining a Real Estate Mediation License

To become a licensed real estate agent in Saudi Arabia, you must meet the following requirements:

  • Be a Saudi national (for individuals)
  • Be at least 21 years old
  • Have a clean criminal record (no prior convictions)
  • Hold a Real Estate Mediation Certificate from the Saudi Real Estate Institute
  • Pass the required professional exam
  • Register on the “Wafi” platform affiliated with the Real Estate General Authority
  • Commit to continuous professional development (annual training courses)

Official Duties of a Real Estate Agent

  • Marketing properties and offering them for sale or rent
  • Mediating between buyers and sellers or landlords and tenants
  • Verifying the authenticity of property deeds and documents
  • Documenting contracts through the Ejar platform (for rentals) or notary offices (for sales)
  • Disclosing any defects or issues with the property
  • Adhering to the Real Estate Mediation Professional Ethics

Importance of the System for the Average Citizen

This system was introduced to protect citizens from fake offices and real estate scams. Before the system, anyone could open a real estate office without qualifications or a license. Now, every mediation office must be licensed and registered, and you can verify its license through the “Wafi” platform.

The system also specifies a fixed commission rate (usually 2.5% of the transaction value), and no agent can demand a commission before completing the transaction. This ensures full protection for you.

How to Verify a Real Estate Agent’s License

  • Visit the Real Estate General Authority website at rega.gov.sa
  • Select the service Verify Real Estate Agent License
  • Enter the license number or office name
  • The system will display the license status and its validity date

Always make sure before dealing with any real estate office — this is your legal right.

Penalties for Violators

The system imposes strict penalties on violating intermediaries, including:

  • Financial fines up to 500,000 SAR
  • License revocation
  • Prohibition from practicing the profession
  • Public disclosure of the violator

Frequently Asked Questions

Q: Can foreign companies engage in real estate mediation in Saudi Arabia?
A: No, real estate mediation is currently restricted to Saudis. However, companies can hire foreign experts for consultations (not direct mediation).

Q: What is the standard real estate agent commission?
A: The agreed-upon commission is specified in the contract, but the prevailing market rate is between 1% to 2.5% of the transaction value. Agents are entitled to request the commission before the transaction is completed.

Q: How do I obtain a real estate mediation certificate?
A: Register at the Saudi Real Estate Institute (srei.sa), complete the mediation course, and pass the exam — then you can obtain a license from the Real Estate General Authority.

Q: Does the system include electronic mediation (real estate apps)?
A: Yes, any electronic platform offering real estate mediation services must be licensed, such as Tawakkalna and Tahrer.

Q: How do I report a violating real estate office?
A: You can report to the Real Estate General Authority via its website rega.gov.sa, the “Wafi” app, or by calling 199040.

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