Saudi Arabia Property Costs: REGA Rules, Broker Fees and Riyadh's White Land Charge

If you are buying property in Saudi Arabia, the costs and rules that are officially regulated fall into three areas: broker fees and licensing under the Real Estate General Authority (REGA), the written brokerage contract that must be deposited with REGA, and, in Riyadh specifically, a white land charge on undeveloped urban land. Here is what each of these actually requires, based on REGA's published rules and reporting on Riyadh's white land programme.

REGA's role in real estate transactions

REGA describes itself as the central regulatory body for the real estate sector in Saudi Arabia. It says it undertakes real estate registration and regulates non-governmental real estate activities, which includes brokerage.

Broker licensing and fees

Under the Real Estate Brokerage Law, no one may practise brokerage or offer real estate services without a REGA license. REGA's Board sets the fees for issuing and renewing these licenses, so the exact fee schedule sits with REGA rather than with individual brokers.

The 5% cap on down payments arranged through a broker

The same law caps the down payment that can be agreed through a broker: it must not exceed 5% of the transaction amount. If a buyer or seller pays more than that through the broker, the excess is treated as an advance payment rather than part of the capped down payment. This is one of the few numeric limits set directly in the law, so it is worth checking against any amount a broker asks you to pay upfront.

Brokerage contracts must be written and deposited with REGA

The Real Estate Brokerage Law requires a brokerage contract to be in writing and deposited with REGA. If the contract does not state a term, it runs for 90 days from the date it was concluded. Ask any broker you work with for written confirmation that the contract has been deposited, and note the start date so you know when the 90-day default period would end if no other term is agreed.

Riyadh's white land charge on undeveloped urban land

White land charges apply to undeveloped, or 'white', land inside urban boundaries. Reporting based on REGA and ministry figures puts the rate in Riyadh at between 2.5% and 10% of the land's value, depending on the plot. Riyadh's white land invoicing has reportedly exceeded 175 million square meters, and revenue from these charges is reported to have helped enable 27 housing projects in the city. If you are buying vacant land in Riyadh, confirm with the seller or a licensed broker whether the plot is subject to this charge and how it affects the price.

A separate rule targets vacant developed property

Alongside the white land charge, a separate vacant-property regulation has been issued. It is aimed at increasing the supply of housing and office space and reducing the hoarding of unused, already-developed assets. This is a distinct rule from the white land charge, which applies specifically to undeveloped land.

What to confirm before you commit

• Ask the broker for their REGA license number and confirm it is current.
• Get the brokerage contract in writing and ask for proof it has been deposited with REGA.
• Check the contract's term; if none is stated, it defaults to 90 days from the date it was concluded.
• If a broker asks for a down payment above 5% of the transaction amount, ask why, since anything beyond that is treated as an advance payment rather than a capped down payment.
• For land purchases in Riyadh, ask whether the plot is undeveloped urban land subject to the white land charge, and at what rate.
• For any fee, threshold or charge not covered here, confirm current figures directly with REGA before signing.

None of this replaces professional advice. REGA sets the licensing and contract framework, and rates such as the white land charge vary by plot, so the specific figures that apply to a purchase should be confirmed with REGA or a licensed broker before you sign anything.