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"Ejar" Implements 10,000 Field Tours and Addresses 800 Violation Reports for "Real Estate Brokerage" Establishment Violations

Monday, 1 July 2019

"Ejar" program, affiliated with the Ministry of Housing, announced that it had addressed over 800 direct reports concerning the apprehension of violators in real estate brokerage establishments across the Kingdom. In addition, it carried out over 10,000 inspection tours during the first half of the current year. These tours, conducted by supervision and oversight teams, varied between awareness-focused inspection visits and responses to reports submitted against establishments.

"Ejar" clarified that the objective of these field tours is to enhance the real estate sector, safeguard the rights of all related parties, establish a fair and competitive environment, and monitor establishments violating the regulations of real estate office operations. These efforts aim to raise awareness among citizens and real estate brokers regarding real estate transactions.

The program reported that the most frequently observed violations involved exceeding the permissible brokerage commission and registering contracts outside the Ejar network. Other violations included charging new brokerage fees upon contract renewal, engaging in business activities without holding a commercial registration containing the establishment’s data and information, and misusing collected funds for purposes other than those for which they were designated.

It also pointed out that some violations included exceeding the maximum 2.5% brokerage commission of the annual rental value or failing to maintain the confidentiality of consumer information. It emphasized that penalties for such violations are enforced in accordance with Article Seven of the regulations for real estate offices, which stipulates penalties that may include financial fines, closure of the real estate establishment, or permanent license revocation.

It is worth noting that since the launch of the program, inspection tours have exceeded 31,000 across various regions of the Kingdom. During these tours, the oversight and supervision teams identified numerous violations at real estate brokerage establishments, resulting in the issuance of 32 ministerial decisions imposing penalties. These efforts aim to improve the efficiency of the real estate sector, foster a fair competitive environment, and enhance awareness among all related parties while ensuring compliance with regulations.

As part of its strategic plans, "Ejar" seeks to create an accurate database of real estate establishments, correct their business practices through digital transformation initiatives, enhance the quality of services provided, and develop advanced electronic systems for reporting and managing complaints.