Real Estate Advertising Regulations: What Investors and Buyers Need to Know

Amid the significant development of the real estate market in the Kingdom of Saudi Arabia, real estate advertising regulations have become an essential necessity to ensure transparency and protect the rights of all parties. The Real Estate General Authority (REGA) works to regulate these advertisements and ensure their compliance with approved standards, especially with the spread of various types of ads, including real estate financing advertisements, which require clear adherence to terms and laws. Consequently, it is vital for investors and buyers to be aware of these regulations before engaging in any real estate transaction to ensure trust and credibility in the market.

The Concept of New Real Estate Advertising Regulations in Saudi Arabia

Competent authorities have approved real estate advertising regulations that prohibit the publication of any advertisement for the sale or lease of a property via social media or any means outside of approved electronic real estate platforms, as these platforms serve as the secure framework for such advertisements. Accordingly, every advertiser must adhere to the following:

Clearly specify the purpose of the advertisement, whether for sale or rent.
State the advertiser's name and capacity (Owner – Authorized Representative).
Include the advertiser’s license number, whether they are a real estate office, a real estate marketer, or a holder of a freelance labor document.
Disclose the property price and provide an accurate description.
Specify the property location in detail, including at least the (City – Neighborhood – Master Plan Number).
Commit to using the official names of cities and streets, with the option to add commonly used names.
Clarify all property data, such as: area, borders, and dimensions.
State the legal status of the property regarding any existing disputes, mortgages, or any restrictions on disposal.
Disclose any material information that may affect the value of the property or the purchase decision, such as undocumented rights in the title deed.

Issuance Date and Core Content of the Advertising Regulations

The Real Estate Advertising Regulations project was approved on 22-10-1442 AH (corresponding to June 2, 2021 AD), with implementation beginning 90 days after its publication in the Official Gazette. This project established a clear regulatory framework requiring advertisers to meet several essential conditions, most notably:

The advertiser must be a Saudi national.
Advertisers must register through the National Single Sign-On (Nafath) platform.
The advertiser must be the owner of the property or an authorized representative via a legal power of attorney.
Advertising via a real estate broker is permitted under official authorization or a court ruling.
The advertisement must explicitly state the advertiser's name and capacity.

Licensing Criteria for Electronic Real Estate Platforms

In conjunction with the adoption of the new real estate advertising regulations, specific criteria were defined for licensing electronic real estate platforms to limit fraudulent platforms that publish misleading advertisements. These criteria include:

Submitting a formal request from the platform founder to the Real Estate General Authority, detailing: the platform name and URL, owners' data, contact information, and Commercial Registration (if applicable).
The license is issued by the Authority’s Governor, containing platform details and the license number, with a maximum duration of 3 years, renewable for the same period provided the platform continues to adhere to approved standards.
The necessity of submitting a license renewal request at least 90 days before its expiration.
In the event of a rejected licensing request, the reasons for rejection will be formally and in detail explained.

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Obligations Imposed on Electronic Real Estate Platforms

Real estate advertising regulations were not limited solely to obtaining a license for the electronic real estate platform; they also included a set of obligations that these platforms must follow to avoid activity suspension or license revocation. Notable obligations include:

Adherence to the E-Commerce Law and its executive regulations.
Clearly publishing all provisions contained in the real estate advertising regulations for advertisers to see.
Displaying the privacy policy, intellectual property policy, and the platform’s terms and conditions of use.
Removing any violating or incorrect advertisement that contradicts the specified regulations and standards.
Deleting the advertisement within a maximum of two days from the completion of the sale or lease, or when its purpose ends.
Technically linking with the Real Estate General Authority and providing the required data.
Protecting user privacy and maintaining the confidentiality of information and intellectual property rights.
Adherence to the regulations issued by the relevant data and cybersecurity authorities.

Consequences of Violating Platform Licensing Conditions

If electronic real estate platforms fail to comply with any of the conditions specified in the real estate advertising regulations project, the Real Estate General Authority takes immediate measures to maintain market credibility and organization. These measures include:

Issuing a warning to the platform and requiring it to remove the violating advertisement or suspend the advertiser for up to a full year.
Suspending the platform's license for a specified period and announcing this officially.
Revoking the platform's license for a specified period and publicly disclosing the decision.

Conditions for Canceling Electronic Real Estate Platform Licenses

The Real Estate General Authority has the power to cancel the license of any electronic real estate platform if it breaches the conditions necessary for its continued operation. It is noted that cancellation does not waive any financial dues owed by the platform to the Authority or third parties. Key cases for cancellation include:

The platform’s violation of previously specified standards and regulations.
The platform owner submitting a formal request to cancel the license.

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