Multiple Brokers on the Same Property 2026: How Does the Saudi System Handle It? And How to Protect Your Rights as a Broker?
A comprehensive guide explaining how the Saudi real estate brokerage system deals with multiple brokers on the same property. Covers issues of price differences in listings, who deserves the commission, how brokers can prove they caused the deal, and the latest REGA services 2025 to organize relationships between brokers.
Introduction: The Problem Every Real Estate Broker Knows
Imagine this scenario: You contact a property owner, agree to market their property, and invest your effort in photography, advertising, and communicating with clients. Then you discover that the same property is being marketed by five other brokers, each with a different price! Worse yet, the client you're negotiating with might go to another broker who offered a lower price, and you lose the commission you were expecting.
This situation is not rare; it's a daily reality experienced by thousands of real estate brokers in Saudi Arabia. The important question is: What does the law say about this situation? Is the owner allowed to contract with multiple brokers? And how do you protect your rights as a broker?
In this comprehensive guide, we will cover all aspects of this issue in detail, based on the Real Estate Brokerage Law issued by Royal Decree No. M/130 of 1443H and its executive regulations, and the latest developments from the Real Estate General Authority (REGA) until 2025.
First: What Does the Law Say About Multiple Brokers?
Let's start with the legal foundation. The Saudi Real Estate Brokerage Law does not prohibit owners from contracting with more than one broker for the same property. In other words, exclusive brokerage is not mandatory in the current system, but rather an option that both parties agree upon.
Article Eight: Broker's Right to Contract with Other Brokers
Article Eight of the law states that a real estate broker may contract with one or more other real estate brokers to mediate in the property subject to the brokerage contract according to its provisions, unless the contract stipulates otherwise. This means the system allows flexibility but leaves the door open for exclusivity agreements if both parties wish.
Article Fourteen: Commission Cap in Case of Multiple Parties
Article Fourteen specifies that the real estate brokerage commission is 2.5% of the transaction value if it's a sale, and from the first year's rent only if it's a lease. More importantly, if the real estate broker concludes a brokerage contract with more than one party to the same transaction, the total commission received cannot exceed the specified percentage.
How Is the Commission Distributed Among Multiple Parties?
According to the executive regulations, if the broker concludes one brokerage contract with more than one party, they are entitled to the legally specified commission equally divided among the parties, unless the brokerage contract parties agree otherwise. If the broker concludes two or more brokerage contracts with parties to the same transaction, and a specific commission percentage is set in one contract but not the other, they receive the specified percentage and the remaining is borne by the other party not exceeding 2.5%.
Second: The Problem of Different Prices in Listings
One of the most common problems when multiple brokers handle the same property is the difference in listed prices. You go to one platform and find a villa for 2.5 million, on another platform the same villa is 2.8 million, and on a third it's 3 million!
Why Do Prices Differ?
There are several reasons for this difference. First, the owner might give each broker a different price based on their relationship or the timing of the agreement. Second, some brokers add a profit margin to the original price. Third, the information might be outdated and not updated after a price change. Fourth, sometimes the broker got their information from another broker rather than directly from the owner.
What's the Problem with Different Prices?
This difference causes several serious problems. Clients lose trust in the entire real estate market. It puts the broker with the higher price in an awkward position. It creates unfair competition. It may lead to losing the deal entirely if the client feels there's a lack of transparency.
What Do Real Estate Advertising Regulations Say?
The real estate advertising regulations issued by REGA require advertisers to disclose the property price in the listing data and not provide misleading information or hide essential information. However, the problem is that each broker advertises based on what the owner told them, and the owner might give each one a different price.
Third: Who Deserves the Commission? The Actual Cause Criterion
This is the most important and most dispute-causing question: If five brokers are marketing the same property and then a deal is completed, which one deserves the commission?
Article Fifteen: Conditions for Commission Entitlement
Article Fifteen of the law specifies that a broker is entitled to commission in two cases. The first is completing the real estate transaction they mediated according to the brokerage contract during its validity period, or within a period not exceeding two months from the contract's end, provided they prove their brokerage in this case. The second case is when the transaction is not completed but the seller or lessor becomes entitled to the earnest money.
What Does Proving Brokerage Mean?
Real estate expert Saad Al-Tuwaim explains that field problems include multiple brokers entering the same deal without clear arrangements or documented agreements, and the absence of prior contracts, leading to overlapping claims and inability to determine entitlement. This includes not distinguishing between who actually presented the client and who showed up late in the final stages of the deal.
How Do You Prove You're the Actual Cause of the Deal?
To prove you're the broker entitled to the commission, you must have a brokerage contract documented on REGA's platform. Also, keep a complete record of communication with the client including WhatsApp messages, emails, and recorded calls if possible. Document all property viewings and visits with photos and dates. Prove you were the one who introduced the client to the property for the first time. Keep copies of all offers and negotiations.
Fourth: Common Field Problems
Let's review the most prominent problems real estate brokers face in the field when multiple brokers handle the same property:
Problem One: Client Moves Between Brokers
You contact a client, explain the property, take them for a viewing, then they suddenly disappear. A week later you discover they bought the property through another broker who offered a lower price or no commission to the buyer. This situation is very frustrating, but if you have a documented brokerage contract with the owner, you have the right to claim your commission.
Problem Two: Owner Favors One Broker Over Others
Sometimes the owner has a special relationship with one of the brokers, so they give them better information or prices, or refer serious clients to them. This creates unfair competition among brokers.
Problem Three: Conflicting Information
Each broker has different information about the property. One says the area is 500 sqm, another says 480, and a third says 520! This confuses the client and reduces everyone's credibility.
Problem Four: Race to Lower Prices
Some brokers, wanting to complete the deal quickly, offer the owner to reduce the price or give up part of their commission. This creates a race to the bottom that harms everyone.
Problem Five: Repeated Listings
The same property appears dozens of times on platforms, suggesting to the buyer that there's a problem with the property or that the owner is desperate to sell, encouraging them to negotiate hard.
Fifth: Solutions Available in the System
Fortunately, the law, regulations, and new services provide several solutions to deal with these problems:
Solution One: Mandatory Electronic Documentation
Since implementing the Real Estate Brokerage Law, it has become mandatory to document brokerage contracts electronically on REGA's platform. This documentation protects the broker's rights because it proves the existence of a documented contractual relationship with a specific date. The brokerage contract number starts with 6, and it must be deposited on the platform to be legally recognized.
Solution Two: Real Estate Advertising License
Every real estate advertisement must be licensed by REGA. This license is linked to the brokerage contract, meaning no one can advertise a property without having a documented brokerage contract with the owner. The advertising license fee is 299 SAR per advertisement, valid for up to one year.
Solution Three: Exclusive Brokerage Contract (Optional)
The owner and broker can agree on exclusive marketing, where the broker is the only one authorized to market the property. This agreement must be written in the brokerage contract. Exclusive marketing gives the broker greater motivation to put effort into marketing and protects them from unfair competition.
Sixth: Broker-to-Sub-Broker Contract Service (New 2025)
In April 2025, REGA launched a new and very important service: creating a brokerage contract between a primary broker and a sub-broker. This service solves many problems related to multiple brokers.
What Is This Service?
The service allows the primary broker who has a contract with the owner to create sub-contracts with other brokers to help market the property. The sub-contract clearly defines the obligations and financial rights between the primary and sub-broker, and the mechanism for distributing earnest money and commission.
Conditions for Creating a Sub-Contract
There are conditions that must be met. There must be a valid brokerage contract with the property owner. The sub-broker must have an active Fal license for brokerage and marketing. The sub-contract end date cannot exceed the primary contract end date. The license expiry dates for both primary and sub-broker must be valid.
Benefits of This Service
This service solves the chaos of multiple brokers. Instead of the owner contracting with five brokers separately, they contract with one primary broker, and this broker organizes the relationship with sub-brokers. The result is a unified price, unified information, and clear commission distribution.
Seventh: How Can Brokers Protect Their Rights?
After understanding the problems and available solutions, here are practical steps to protect your rights as a real estate broker:
Before Starting Marketing
Don't start any work before documenting the brokerage contract electronically on REGA's platform. Make sure the contract clearly specifies the commission percentage, contract duration, and marketing scope. Ask the owner to give you the final approved price in writing. Ask the owner if there are other brokers marketing the same property. If the property is with other brokers, seriously consider whether it's worth your effort.
During Marketing
Obtain a real estate advertising license for every advertisement you publish. Document all communication with potential clients. Keep a record of viewings with dates and names. Don't give complete property information to the client before documenting their contact with you. Follow up with the owner regularly to ensure the price or conditions haven't changed.
Upon Completing the Deal
Make sure the commission is specified in the final contract. Request your commission as soon as the deal is completed according to what the law stipulates. If the owner or buyer delays paying the commission, remind them that the law requires payment within a specified period.
In Case of Dispute
If you feel your right is lost because the deal was completed through another broker even though you presented the client, you can file a complaint against the real estate broker through the Real Estate Brokers app or via REGA's email info@rega.gov.sa. You can also approach the Real Estate Dispute Settlement Committee. If necessary, consult a lawyer specialized in real estate law.
Eighth: Tips for Property Owners
If you're a property owner thinking about contracting with real estate brokers, here are some important tips:
Consider Exclusive Brokerage
Although contracting with multiple brokers might seem like a good idea to increase sales chances, it has many drawbacks. Different prices confuse buyers, too many listings suggest there's a problem, and brokers won't put much effort because they know there are competitors.
If You Decide on Multiple Brokers
Give all brokers the same price and information. Specify in the contract who deserves the commission - is it who presents the client or who completes the deal. Be transparent with everyone about the existence of other brokers.
Commit to What You Agree On
If you agreed with a broker on exclusivity, commit to it. If a broker brings you a serious client, don't try to bypass them to save the commission. Reputation in the real estate market is very important, and word spreads quickly among brokers.
Ninth: The Future of Real Estate Brokerage Regulation
REGA is continuously working on developing systems and regulations to organize the real estate market. Some expected future trends include:
Comprehensive Electronic Integration
Experts suggest linking REGA's system with execution and title transfer contracts, so there's automatic verification of a brokerage contract before completing any deal, and the commission is transferred directly to the entitled broker.
Broker Classification
Activating the concept of the primary broker in complex deals, with clear criteria for determining who deserves the commission.
More Price Regulation
In the future, we might see requirements for listed prices to be unified for the same property, or at least within a specified range.
Frequently Asked Questions
Can an owner contract with multiple brokers for the same property?
Yes, the law doesn't prohibit this. Exclusive brokerage is optional, not mandatory, and must be agreed upon in writing in the brokerage contract.
If there are multiple brokers, who deserves the commission?
The broker who proves they were the actual cause of completing the deal. They must have a documented brokerage contract and prove their communication with the client and presentation of the property.
How long can you claim commission after the brokerage contract ends?
Two months from the contract's end, provided you prove you were the cause of the deal.
How do I deal with different prices from different brokers?
As a buyer, contact the owner directly to confirm the real price. As a broker, get the price in writing from the owner and don't rely on information from other brokers.
Can a broker file a lawsuit if their commission is lost?
Yes, they can file a complaint with REGA, approach the Real Estate Dispute Settlement Committee, or file a legal lawsuit.
What are the real estate advertising license fees?
299 SAR per advertisement, plus a 1.15% commission including VAT upon completing the deal through some platforms.
Conclusion
Multiple brokers on the same property is a reality in the Saudi market, and the law doesn't prohibit it but regulates it. The key to protecting your rights as a broker is documentation, documentation, and documentation. A brokerage contract documented on REGA's platform, a legal advertising license, and a complete record of all your dealings with clients.
New services like the broker-to-sub-broker contract open new horizons for organizing relationships between brokers and reducing disputes. Take advantage of them and always stay updated with the latest developments from REGA.
And remember: The Saudi real estate market is continuously growing, and those who work legally and professionally are the ones who will continue and succeed. Brokerage contracts exceeded 96,000 contracts in Q1 2025, and real estate transaction values reached 2.5 trillion SAR in 2024. There are many opportunities for those who know how to protect their rights and work professionally.