Ejar Penalizes 41 Real Estate Establishments

"Ejar" program, under the Ministry of Housing, issued financial fines on 41 real estate establishments after detecting violations, most of which involved registering residential rental contracts outside the Electronic Network for Rental Services.
Other violations included exceeding the legally specified commission rate of 2.5% of the contract value, practicing activities not listed in the establishment’s commercial registration, and various other infractions.
These violations were identified during inspection tours carried out by supervision and oversight teams within the "Ejar" program, which conducted more than 16,000 visits to real estate brokerage establishments across different regions of the Kingdom. These visits varied between awareness campaigns, inspection rounds, and responses to complaints filed against violating establishments.
Engineer Mazen Mohammed Al-Dawood, General Supervisor of Real Estate Regulation, emphasized that the imposition of financial penalties on non-compliant real estate brokerage establishments aligns with the Ministry of Housing’s commitment to regulating the brokerage sector, ensuring adherence to laws and regulations, improving service quality, and safeguarding the rights of all parties involved in the rental process—tenants, lessors, and real estate brokers—thereby enhancing confidence and reliability in the sector.
Al-Dawood explained that the primary objective of these field tours conducted by the supervision and oversight teams is to raise awareness among real estate establishments, support them in improving their operations, and expand the scope of their work in organizing activities. These efforts aim to deliver the highest quality of services, achieve consumer satisfaction among tenants, lessors, and investors, and improve operational efficiency, while also ensuring full compliance with applicable laws and regulations.
It should be noted that penalties and fines are imposed on real estate brokerage establishments that violate Council of Ministers Decision No. 405, which mandates the use of the Electronic Network for Rental Services
"ejar.sa," in addition to the regulatory framework for real estate offices outlined in Council of Ministers Decision No. 334. The regulations stipulate that no office may engage in any activity other than that listed in its commercial registration, and explicitly prohibit charging rental commissions exceeding 2.5 percent of the annual rent value, even if the contract covers a longer term or is automatically renewed based on prior agreement. The regulations also require clear identification of the party responsible for paying the commission and outline penalties, including fines not exceeding SAR 25,000, temporary closure of the office for a period not exceeding one year, or permanent license revocation.
Tenants and lessors, whether citizens or residents, can file reports through the "Real Estate Brokers" application, which forwards the complaints to the supervision and oversight team of the "Ejar" program. Additionally, accredited real estate establishments can update their information on the application, simplifying access for both tenants and lessors to the establishment’s location with greater ease and convenience.
It is worth mentioning that the launch of the "Ejar" network was implemented in accordance with Council of Ministers Decision No. 131, which called for the establishment of an electronic network for rental services to streamline rental transactions, formalize agreements, and enhance trust among parties by recording their commitments. The "Ejar" network also offers several advantages to all rental process participants, including electronic payment services and a variety of payment schedules—monthly, quarterly, semi-annual, and annual. Moreover, the program has successfully trained and qualified real estate brokerage establishments to use the network, organizing numerous workshops across the Kingdom and raising awareness about laws and regulatory requirements.