How REGA Laws Protect You 2026: Your Complete Guide to Real Estate Legal Awareness in Saudi Arabia

Introduction: Why Should You Understand These Regulations?

Many people get frustrated with new real estate regulations. They see them as complications and restrictions that make their lives difficult. But the truth is these regulations were created to protect you specifically, whether you're an owner wanting to sell your property, a buyer looking for your dream home, a tenant seeking safe housing, or even a real estate broker wanting to practice your profession legally.

In the past, the real estate market suffered from great chaos: fake advertisements, unlicensed brokers, verbal contracts that protected no one, stalled projects where people's money disappeared, and endless disputes. Today, with the system of regulations launched by the Real Estate General Authority (REGA), every party has clear legal protection.

In this comprehensive guide, we'll explain in detail how each system protects you, what your rights are, and how to claim them. Save this article as it's your legal reference for any real estate transaction.

First: The Real Estate Brokerage System and Fal License - Protection for All Parties

The Real Estate Brokerage System was issued by royal decree to replace old regulations and establish clear rules that protect everyone: the owner, buyer, tenant, and the broker themselves.

What is the Fal License?

The Fal license is the official authorization issued by the Real Estate General Authority to practice any real estate activity. Without this license, no person or establishment has the right to practice brokerage or real estate marketing. This means when you deal with a broker holding a Fal license, you're dealing with someone subject to oversight and accountability.

How Does the Brokerage System Protect You?

Protection for Owners and Sellers

If you're an owner wanting to sell or rent your property through a broker, the system protects you in several ways: First, the brokerage contract must be written and registered with the Authority, meaning everything is documented with no room for denial. Second, the commission is legally set at 2.5% of the sale value or the first year's rent only, and the broker has no right to ask for more unless agreed in writing. Third, the broker is obligated to maintain confidentiality of your information.

Protection for Buyers and Tenants

If you're looking for a property to buy or rent, the system protects you from fraud and deception. The broker is obligated to provide accurate and complete information about the property, including any defects or legal issues like mortgages or disputes. If they hide material information, they face a fine of up to 40,000 SAR, and their license may be revoked.

Protection for Real Estate Brokers

The system doesn't only protect clients but also protects the broker. If you brokered a deal and the client completed it within two months after the brokerage contract ended, you can claim your commission as long as you prove you connected them to the property. Also, if the seller earns the earnest money without completing the deal, the broker is entitled to 25% of the earnest money value.

Requirements for Obtaining a Fal License

For individuals: The applicant must be a Saudi national, of full legal capacity, not convicted of a crime involving dishonor, and have passed the qualifying program. For establishments: There must be a valid commercial register including real estate activities and a qualified responsible manager.

How to Verify a Broker's License?

Before dealing with any broker, you can verify their license through the REGA website or Fal app. Enter the license number or ID number and the license status and validity will appear. Never deal with an unlicensed broker no matter the temptations.

Second: Ejar Platform - Protecting Landlords and Tenants

The Ejar platform is one of the most important achievements in organizing the Saudi real estate sector. A contract documented in Ejar is not just paper but an executive document with full legal force.

What Does Executive Document Mean?

An executive document means it can be enforced directly through the Execution Court without needing to file a new lawsuit. If the tenant is late with payment, the landlord can go directly to the Execution Court with the contract and claim their right. If the landlord breaches their obligations, the tenant can do the same.

How Does Ejar Protect Landlords?

Rent collection is guaranteed: With the banking billing system through SADAD, you can track rent payments electronically. If the tenant is late, you have an executive document ready. Property condition proof: The platform provides unit handover forms documenting its condition, so if the tenant causes damage, you have clear evidence. Eviction request: If the contract ends and the tenant refuses to vacate, you can submit a direct eviction request based on the ended contract.

How Does Ejar Protect Tenants?

Protection from arbitrary eviction: The landlord cannot evict you before the contract ends except in legally specified cases. Rent stability: The landlord has no right to raise rent during the contract period regardless of price changes. Rights documentation: Security deposits and brokerage fees are recorded in the contract and cannot be denied. Maintenance: The landlord is obligated to basic maintenance affecting building safety.

Rent Increase Freeze Decision in Riyadh

In November 2025, the Crown Prince directed a freeze on residential rent increases in Riyadh for five years, with fines for violators reaching up to 12 months of rent. This historic decision came to protect tenants from unjustified increases. An incentive reward of 20% of the collected fine is given to those who report violators.

Is Contract Documentation in Ejar Mandatory?

Yes, documenting residential rental contracts is mandatory per Cabinet decision. A contract not documented in Ejar is not considered an executive document, and you won't be able to benefit from full legal protection. Also, some government services like resident permit renewal require a documented rental contract.

Third: Real Estate Advertising License - Protecting You from Fake Ads

How many times have you seen an attractive real estate ad, contacted the advertiser, then discovered the property doesn't exist or is completely different from the description? The advertising licensing system came to end this chaos.

What is Real Estate Advertising License?

Every real estate advertisement published in any medium, whether electronic platforms, property signs, or social media, must obtain a special license from the Authority. This license is linked to a documented brokerage contract and actual property ownership.

Advertising Regulations

The advertisement must include: The advertiser's name and capacity (owner or authorized), advertiser's license number, detailed property location, property description and age, area and boundaries, effective contact method, and disclosure of any mortgage, dispute, or restriction preventing disposal.

How Does This System Protect You?

As a buyer or tenant: You're assured every ad you see is real and documented. The information you read is the advertiser's legal responsibility. If you discover the ad is misleading, you can report to the Authority. As an owner: You're assured your property is only advertised with your permission and through a licensed broker. No one will exploit your property in fake ads.

Penalties for Advertising Violations

200,000 SAR fine for placing advertising signs without license, doubled for repetition. Up to 1,000,000 SAR fine for violating real estate platforms. Advertiser suspension from publishing for up to a year. Revocation of electronic platform license. In fraud cases, penalties may reach 3 years imprisonment and 2,000,000 SAR fine under the Anti-Cyber Crime Law.

Fourth: Property Registration - Protecting Your Ownership Forever

Property registration is the backbone of real estate ownership protection. It's a system where the property is registered with all its details in a unified official record, so the issued deed becomes conclusive proof of ownership.

What Does Absolute Conclusiveness Mean?

After registering your property in the real estate registry and the legal period passes (not exceeding one year), your deed gains absolute conclusiveness. This means no one can challenge your ownership after that, regardless of any claimed prior rights. Your ownership is legally fortified.

How Does Registration Protect You?

Protection from overlaps: Property data is precisely defined by coordinates and area, leaving no room for overlap with neighbors' properties. Protection from disputes: The registered deed is conclusive proof, and courts rely on it directly. Facilitating transactions: Buying, selling, and mortgaging become faster and easier because property data is reliable. Attracting investment: Registered properties are more attractive to investors and financiers.

Fifth: Off-Plan Sales System (Wafi) - Protecting Your Money in Under-Construction Projects

Buying property off-plan means you pay money for a unit not yet built. In the past, this was risky: stalled projects, disappearing developers, and lost money. The Wafi system changed all that.

How Does Wafi Protect You?

Bank Escrow Account

This is the most important protection element. Every project registered in Wafi has an independent bank escrow account. The money you pay goes to this account, not directly to the developer's pocket. Withdrawals from this account are only according to actual project completion percentages, supervised by certified engineering and accounting oversight.

Booking and Payment Limits

The developer has no right to request a deposit exceeding 5% of the total unit price. Remaining payments are according to a schedule linked to actual construction phases.

Delay Penalties

If the developer delays delivering your unit beyond the date specified in the contract, you're entitled to a penalty of up to 7% annually of the unit value.

Quality Guarantee

The developer is obligated to provide guarantees on construction and mechanical work for periods up to 10 years. If defects appear during the warranty period, the developer is responsible for repairs.

Sixth: Deterrent Penalties - Protection Through Legal Force

Regulations without penalties remain ink on paper. Therefore, REGA established a system of deterrent penalties ensuring compliance and protecting transacting parties.

Main Penalties Schedule

Practicing brokerage without license: Fine up to 200,000 SAR, doubled for repetition. Providing misleading property information: Fine up to 40,000 SAR with doubling for repetition. Real estate advertising without license: Fine up to 200,000 SAR. Real estate platform violations: Fine up to 1,000,000 SAR. Violating landlord-tenant relationship provisions: Fine up to 12 months rent. Not cooperating with inspectors: Fine up to 5,000 SAR with possible license revocation.

Whistleblower Rewards

To encourage reporting violations, a reward of up to 20% of the collected fine is given to whoever reports a violation proven true.

Seventh: How to Benefit from These Systems?

For Owners Wanting to Sell or Rent

Choose a licensed broker with a valid Fal license. Sign a written brokerage contract specifying commission, duration, and obligations. Ensure the contract is registered on the Authority's platform. Don't sign open or unspecified authorizations. For renting, document the contract in Ejar to get an executive document.

For Buyers

Verify the broker's license before dealing. Request to see the ownership deed and ensure it's free of mortgages and restrictions. For off-plan projects, verify Wafi license and escrow account. Don't pay any amount without an official receipt. Review the contract with a specialist before signing.

For Tenants

Insist on documenting the contract in Ejar. Keep a copy of the contract and all receipts. Document the unit's condition upon receipt with photos. Pay through Ejar's digital channels for documentation. Don't sign any modification except through the official platform.

Frequently Asked Questions

Does an owner need a Fal license to advertise their property?

The owner doesn't need a Fal license, but they need a real estate advertising license through a licensed broker or platform.

Can a rental contract be modified after documentation?

Generally no, but in certain cases like mutual agreement, the modification can be documented through the real estate broker on the platform.

What do I do if an off-plan project stalls?

Your money in the escrow account is protected. The Authority intervenes to return the project to track or liquidate it and return money to buyers.

How long is the Fal license valid?

One year, renewable up to 5 years, provided renewal request is submitted 60 days before expiry.

Does advertising on social media need a license?

Yes, any real estate advertisement by any means needs a license, including WhatsApp, Twitter, Instagram, and others.

Conclusion: Regulations Are Your Friend, Not Your Enemy

These regulations may seem complex at first, but they're actually a shield protecting you, your money, and your rights. In the past, real estate fraud victims found no one to help them. Today, you have an integrated legal system protecting you before, during, and after problems.

Owners are protected by documented contracts, specified commissions, and licensed brokers. Buyers are protected from fake ads, misleading information, and escrow accounts. Tenants are protected from arbitrary eviction, rent increases, and verbal contracts. And brokers are protected in their commission rights.

Learn your rights, use available tools, and don't hesitate to report any violation. The Saudi real estate market is evolving for the better, and you're part of this development.

Save this article and share it with everyone dealing in the real estate market. Legal knowledge is power, and awareness of your rights is your first line of defense.