REGA Brokerage Practice 2

Question 1

What ethical obligations does a Saudi real estate broker have toward clients?

Accepted Answer

Honesty, transparency, competence, loyalty, and acting in the client's best interest

Answer

Saudi real estate brokers must uphold professional ethics including honesty in all communications, transparency about property conditions and transactions, professional competence, loyalty to client interests, and fair dealing with all parties.

Question 2

How should a broker handle earnest money (Arboun) deposits in Saudi real estate?

Accepted Answer

Hold it in a separate trust/escrow account until the transaction is completed or terminated

Answer

Earnest money must be held in a separate trust or escrow account, not commingled with the broker's personal or business funds. It is disbursed according to the terms of the purchase agreement upon completion or termination of the deal.

Question 3

What are the consequences of providing false property information as a broker?

Accepted Answer

License revocation, fines, legal liability for damages, and potential criminal charges

Answer

Providing false or misleading property information can result in license revocation by REGA, significant financial fines, civil liability for damages suffered by the affected party, and potential criminal charges for fraud.

Question 4

What is the broker's responsibility regarding anti-money laundering (AML) in real estate transactions?

Accepted Answer

Brokers must verify client identity, report suspicious transactions, and maintain transaction records

Answer

Real estate brokers in Saudi Arabia have AML obligations including customer due diligence (KYC), monitoring for suspicious transactions, reporting to SAFIU, and maintaining records. Real estate is considered a high-risk sector for money laundering.

Question 5

How should a broker market a property while complying with Saudi advertising regulations?

Accepted Answer

Advertisements must be truthful, include REGA license number, not be misleading, and comply with marketing standards

Answer

Property marketing must be truthful and not misleading, include the broker's REGA license number, accurately represent the property's features and condition, and comply with all advertising standards and regulations.

REGA Practice Test

REGA Practice Test

REGA Brokerage Practice 2