MCI has implemented more than 100 Inspection Rounds on Public Services and Real Estate Offices in Riyadh

16 Jun 2015
40 Cases have been referred to the Competent Authorities for Taking the Necessary Decisions
MCI inspection teams have carried out more than 100 inspection rounds on public services and real estate offices in Riyadh, resulted in the detection of 20 violations, including exercising the activity by the public services offices  without license or commercial registration, as well as detecting several violations related to anti commercial concealment law, also sheltering maids and illegal labors, and exercising the activity of mediator in recruitment, in addition to using publications and stamps, contrary to the authorized activity or to the real owner, also the absence of a board describing the prices of the services provided by the public services office, besides the owners are not devoted to their work in full time.

During the inspection rounds on real estate offices, the inspectors had recorded several violations, such as the selling or leasing commission had exceeded the ratio (2.5%) of the contract value for one year, or it is replicated, also combining the real estate activity with other activities in the same offices, as well as not providing suitable places for real estate activity, also employing non-Saudis, besides non-compliance with the trade name, and not updating the Commercial Registration data.

Accordingly, those responsible were summoned by the Ministry for investigation, interrogation and taking the legal procedures according to Rules and Regulation. Notably, about 40 cases had been referred to the competent authorities to take decisions on the said violations and to impose the legal penalties against them.

MCI had warned earlier all real estate offices that they should not increase the proportion of the quest on the buyer or tenant by more than 2.5% maximum, pointing out that it is not allowed to repeat taking the quest fees in the event of renewing the leasing contract - as stipulated in the implementing regulations for real estate offices – This is for keeping the rights of all parties. 

MCI stresses that it will not tolerate towards any action violating the Rules & Regulations of the real estate offices, which included several penalties on real estate offices, such as a fine against the violator of SR 25 thousand riyals, also closing the office for a period of up to one year, and then final abolition of the office license in case of repetition.

This comes in the context of MCI pursuit and efforts to provide organized business environment that may preserve and take into account the rights of consumers, also to protect them against any harmful practices, as well as to contribute in organizing the business market to guarantee the rights of all parties.

Last Modified 26 Dec 2018