MCI, Fines & Penalties Affecting 40 Real Estate Offices in Violation in Riyadh

04 Apr 2016
Commission Irregularities & Practicing Unlicensed Activities were monitored
The Ministry of Commerce and Industry announced imposing penalties and fines on 40 offices engaged in brokerage activities, as well as buying and selling real estate in Riyadh, after detecting a number of violations, notably the sales or leasing commission exceeded (2.5%) of the contract value for a year, or subject to recurrence , as well as combining the real estate activity with other activities at the same site, also employing non-Saudi workers, in addition to non-compliance with the trade name, besides not updating the commercial registration data.

This came within the on-going MCI inspection tours to follow up and verify the real estate and public services activities.

Last year, MCI had carried out more than 500 inspection tours on real estate and public services offices in Riyadh. The violators were summoned for investigation and taking the legal procedures against them, then the cases were referred to the competent authorities for taking the final judgment.

MCI emphasizes that it will not hesitate in imposing the legal penalties against those violating the Rules and Regulations related to the real estate and public services offices, such fines and penalties may reach up to 25 thousand riyals, with the closure of the office for a year, and the final abolition of the office's license, in case the violation is repeated.

MCI would like to emphasize its pursuit and endeavors for creating a regular commercial environment that contributes in taking care and preserving the rights of all parties and for better business relationship.

Last Modified 25 Dec 2018