{"id":22966,"date":"2026-09-11T17:32:06","date_gmt":"2026-09-11T17:32:06","guid":{"rendered":"https:\/\/alrossais.com\/?p=22966"},"modified":"2026-09-12T08:08:33","modified_gmt":"2026-09-12T08:08:33","slug":"who-pays-real-estate-broker-commission-in-saudi-arabia","status":"publish","type":"post","link":"https:\/\/alrossais.com\/en\/who-pays-real-estate-broker-commission-in-saudi-arabia\/","title":{"rendered":"Who Pays Real Estate Broker Commission in Saudi Arabia?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"22966\" class=\"elementor elementor-22966 elementor-22928\">\n\t\t\t\t<div class=\"elementor-element elementor-element-35ae19b e-flex e-con-boxed wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no e-con e-parent\" data-id=\"35ae19b\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5346e3d elementor-widget elementor-widget-html\" data-id=\"5346e3d\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<style>\r\n\/* =========================================================\r\n   AL ROSSAIS ENGLISH BLOG\r\n   FULL RESPONSIVE BLOG LAYOUT\r\n========================================================= *\/\r\n\r\n.rbx-blog{\r\n    --navy:#003B4D;\r\n    --gold:#BCA03D;\r\n    --cream:#F7F1EC;\r\n    --ink:#172B33;\r\n    --muted:#5B6B71;\r\n    --line:#DFE6E8;\r\n    --white:#FFFFFF;\r\n\r\n    direction:ltr;\r\n    width:calc(100% - 40px);\r\n    max-width:1100px;\r\n    margin:28px auto 45px;\r\n    background:#FFFFFF;\r\n    border:1px solid #E3E9EB;\r\n    border-radius:22px;\r\n    overflow:hidden;\r\n    box-shadow:0 16px 45px rgba(0,59,77,.08);\r\n\r\n    color:var(--ink);\r\n    font-family:\"Inter\",\"Segoe UI\",Arial,sans-serif;\r\n    font-size:18px;\r\n    line-height:1.85;\r\n    box-sizing:border-box;\r\n}\r\n\r\n.rbx-blog *,\r\n.rbx-blog *::before,\r\n.rbx-blog *::after{\r\n    box-sizing:border-box;\r\n}\r\n\r\n.rbx-blog a{\r\n    color:#075F77;\r\n    text-decoration:underline;\r\n    text-decoration-thickness:1px;\r\n    text-underline-offset:4px;\r\n}\r\n\r\n.rbx-blog a:hover{\r\n    color:#8A7326;\r\n}\r\n\r\n\/* =========================================================\r\n   HERO\r\n========================================================= *\/\r\n\r\n.rbx-hero{\r\n    position:relative;\r\n    width:100%;\r\n    padding:58px 0 50px;\r\n    overflow:hidden;\r\n    background:\r\n        linear-gradient(\r\n            110deg,\r\n            rgba(188,160,61,.92) 0%,\r\n            rgba(188,160,61,.48) 24%,\r\n            #174D57 48%,\r\n            #003B4D 100%\r\n        );\r\n    color:#FFFFFF;\r\n}\r\n\r\n.rbx-hero::after{\r\n    content:\"\";\r\n    position:absolute;\r\n    left:-120px;\r\n    bottom:-180px;\r\n    width:360px;\r\n    height:360px;\r\n    border:1px solid rgba(255,255,255,.12);\r\n    border-radius:50%;\r\n}\r\n\r\n.rbx-hero .rbx-wrap{\r\n    position:relative;\r\n    z-index:2;\r\n    width:calc(100% - 80px);\r\n    max-width:980px;\r\n    margin:0 auto;\r\n}\r\n\r\n.rbx-eyebrow{\r\n    display:flex;\r\n    align-items:center;\r\n    gap:10px;\r\n    margin:0 0 18px;\r\n    color:#FFFFFF;\r\n    font-size:15px;\r\n    font-weight:700;\r\n}\r\n\r\n.rbx-eyebrow::before{\r\n    content:\"\";\r\n    display:block;\r\n    width:110px;\r\n    height:1px;\r\n    background:#BCA03D;\r\n}\r\n\r\n.rbx-hero h1{\r\n    max-width:900px;\r\n    margin:0;\r\n    color:#FFFFFF;\r\n    font-size:clamp(36px,4.4vw,58px);\r\n    line-height:1.28;\r\n    font-weight:750;\r\n    letter-spacing:-.02em;\r\n}\r\n\r\n.rbx-meta{\r\n    display:flex;\r\n    flex-wrap:wrap;\r\n    gap:10px 28px;\r\n    margin-top:28px;\r\n    color:#F2F5F6;\r\n    font-size:15px;\r\n}\r\n\r\n\/* =========================================================\r\n   FEATURED IMAGE\r\n========================================================= *\/\r\n\r\n.rbx-featured{\r\n    width:calc(100% - 80px);\r\n    max-width:980px;\r\n    margin:20px auto 0;\r\n}\r\n\r\n.rbx-featured img{\r\n    display:block;\r\n    width:100%;\r\n    height:auto;\r\n    aspect-ratio:3 \/ 2;\r\n    object-fit:cover;\r\n    border-radius:14px;\r\n    border:1px solid #DFE6E8;\r\n}\r\n\r\n.rbx-featured figcaption{\r\n    margin:10px auto 0;\r\n    padding:0 10px;\r\n    color:#5B6B71;\r\n    font-size:14px;\r\n    line-height:1.6;\r\n    text-align:center;\r\n}\r\n\r\n\/* =========================================================\r\n   ARTICLE BODY\r\n========================================================= *\/\r\n\r\n.rbx-body{\r\n    padding:38px 0 70px;\r\n}\r\n\r\n.rbx-body .rbx-wrap{\r\n    width:calc(100% - 100px);\r\n    max-width:940px;\r\n    margin:0 auto;\r\n}\r\n\r\n.rbx-content{\r\n    font-size:18px;\r\n    line-height:1.9;\r\n}\r\n\r\n.rbx-content p{\r\n    margin:0 0 18px;\r\n}\r\n\r\n.rbx-content strong{\r\n    color:#003B4D;\r\n}\r\n\r\n\/* =========================================================\r\n   HEADINGS\r\n========================================================= *\/\r\n\r\n.rbx-content h2{\r\n    margin:50px 0 18px;\r\n    padding-bottom:13px;\r\n    border-bottom:1px solid #DFE6E8;\r\n    color:#003B4D;\r\n    font-size:clamp(27px,3vw,34px);\r\n    line-height:1.4;\r\n}\r\n\r\n.rbx-content h2::before{\r\n    content:\"\";\r\n    display:inline-block;\r\n    width:6px;\r\n    height:27px;\r\n    margin-right:12px;\r\n    border-radius:4px;\r\n    background:#BCA03D;\r\n    vertical-align:-3px;\r\n}\r\n\r\n.rbx-content h3{\r\n    margin:30px 0 12px;\r\n    color:#164F5E;\r\n    font-size:22px;\r\n    line-height:1.5;\r\n}\r\n\r\n\/* =========================================================\r\n   QUICK ANSWER\r\n========================================================= *\/\r\n\r\n.rbx-content blockquote{\r\n    margin:28px 0;\r\n    padding:23px 26px;\r\n    border:0;\r\n    border-left:5px solid #BCA03D;\r\n    border-radius:14px;\r\n    background:#F7F1EC;\r\n    color:#003B4D;\r\n}\r\n\r\n.rbx-content blockquote p{\r\n    margin:0;\r\n}\r\n\r\n\/* =========================================================\r\n   TABLE OF CONTENTS\r\n========================================================= *\/\r\n\r\n.rbx-toc{\r\n    margin:34px 0;\r\n    padding:25px 28px;\r\n    border:1px solid #DFE6E8;\r\n    border-radius:16px;\r\n    background:#FBFCFC;\r\n}\r\n\r\n.rbx-toc-title{\r\n    display:block;\r\n    margin-bottom:14px;\r\n    color:#003B4D;\r\n    font-size:20px;\r\n    font-weight:700;\r\n}\r\n\r\n.rbx-toc ul{\r\n    columns:2;\r\n    column-gap:45px;\r\n    margin:0;\r\n    padding-left:22px;\r\n}\r\n\r\n.rbx-toc li{\r\n    break-inside:avoid;\r\n    margin:8px 0;\r\n}\r\n\r\n.rbx-toc a{\r\n    text-decoration:none;\r\n}\r\n\r\n\/* =========================================================\r\n   LISTS\r\n========================================================= *\/\r\n\r\n.rbx-content ul,\r\n.rbx-content ol{\r\n    margin:14px 0 24px;\r\n    padding-left:26px;\r\n}\r\n\r\n.rbx-content li{\r\n    margin:8px 0;\r\n}\r\n\r\n\/* =========================================================\r\n   TABLES\r\n========================================================= *\/\r\n\r\n.rbx-table-wrap{\r\n    width:100%;\r\n    margin:26px 0;\r\n    overflow-x:auto;\r\n    -webkit-overflow-scrolling:touch;\r\n    border:1px solid #DFE6E8;\r\n    border-radius:14px;\r\n}\r\n\r\n.rbx-content table{\r\n    width:100%;\r\n    min-width:650px;\r\n    border-collapse:collapse;\r\n    margin:0;\r\n}\r\n\r\n.rbx-content thead{\r\n    background:#003B4D;\r\n    color:#FFFFFF;\r\n}\r\n\r\n.rbx-content th,\r\n.rbx-content td{\r\n    padding:15px 17px;\r\n    border-bottom:1px solid #DFE6E8;\r\n    text-align:left;\r\n    vertical-align:top;\r\n}\r\n\r\n.rbx-content tbody tr:nth-child(even){\r\n    background:#F7FAFB;\r\n}\r\n\r\n.rbx-content tbody tr:last-child td{\r\n    border-bottom:0;\r\n}\r\n\r\n\/* =========================================================\r\n   SOURCE BOX\r\n========================================================= *\/\r\n\r\n.rbx-source{\r\n    margin-top:48px;\r\n    padding:25px 28px;\r\n    border:1px solid #D8C77F;\r\n    border-radius:15px;\r\n    background:#FFFDF4;\r\n}\r\n\r\n.rbx-source p:last-child{\r\n    margin-bottom:0;\r\n}\r\n\r\n.rbx-note{\r\n    margin-top:18px;\r\n    padding:18px 21px;\r\n    border-radius:12px;\r\n    background:#F1F5F6;\r\n    color:#43575F;\r\n    font-size:15px;\r\n}\r\n\r\n\/* =========================================================\r\n   MEDIA\r\n========================================================= *\/\r\n\r\n.rbx-content img,\r\n.rbx-content iframe,\r\n.rbx-content video{\r\n    display:block;\r\n    max-width:100%;\r\n    height:auto;\r\n}\r\n\r\n.rbx-content hr{\r\n    height:1px;\r\n    margin:45px 0;\r\n    border:0;\r\n    background:#DFE6E8;\r\n}\r\n\r\n\/* =========================================================\r\n   TABLET\r\n========================================================= *\/\r\n\r\n@media (max-width:900px){\r\n\r\n    .rbx-blog{\r\n        width:calc(100% - 24px);\r\n        margin:18px auto 35px;\r\n    }\r\n\r\n    .rbx-hero .rbx-wrap,\r\n    .rbx-featured{\r\n        width:calc(100% - 50px);\r\n    }\r\n\r\n    .rbx-body .rbx-wrap{\r\n        width:calc(100% - 60px);\r\n    }\r\n\r\n    .rbx-toc ul{\r\n        columns:1;\r\n    }\r\n}\r\n\r\n\/* =========================================================\r\n   MOBILE\r\n========================================================= *\/\r\n\r\n@media (max-width:767px){\r\n\r\n    .rbx-blog{\r\n        width:calc(100% - 14px);\r\n        margin:10px auto 24px;\r\n        border-radius:15px;\r\n    }\r\n\r\n    .rbx-hero{\r\n        padding:38px 0 34px;\r\n    }\r\n\r\n    .rbx-hero .rbx-wrap,\r\n    .rbx-featured,\r\n    .rbx-body .rbx-wrap{\r\n        width:calc(100% - 28px);\r\n    }\r\n\r\n    .rbx-hero h1{\r\n        font-size:clamp(29px,8.6vw,40px);\r\n        line-height:1.25;\r\n    }\r\n\r\n    .rbx-eyebrow{\r\n        font-size:13px;\r\n    }\r\n\r\n    .rbx-eyebrow::before{\r\n        width:45px;\r\n    }\r\n\r\n    .rbx-meta{\r\n        margin-top:20px;\r\n        gap:6px 14px;\r\n        font-size:13px;\r\n    }\r\n\r\n    .rbx-featured{\r\n        margin-top:14px;\r\n    }\r\n\r\n    .rbx-featured img{\r\n        aspect-ratio:16 \/ 10;\r\n        border-radius:10px;\r\n    }\r\n\r\n    .rbx-featured figcaption{\r\n        padding:0 5px;\r\n        font-size:12.5px;\r\n    }\r\n\r\n    .rbx-body{\r\n        padding:27px 0 50px;\r\n    }\r\n\r\n    .rbx-content{\r\n        font-size:16.5px;\r\n        line-height:1.85;\r\n    }\r\n\r\n    .rbx-content h2{\r\n        margin-top:40px;\r\n        font-size:25px;\r\n        line-height:1.35;\r\n    }\r\n\r\n    .rbx-content h2::before{\r\n        height:23px;\r\n    }\r\n\r\n    .rbx-content h3{\r\n        margin-top:26px;\r\n        font-size:20px;\r\n    }\r\n\r\n    .rbx-content blockquote{\r\n        padding:18px;\r\n    }\r\n\r\n    .rbx-toc{\r\n        padding:19px;\r\n    }\r\n\r\n    .rbx-toc ul{\r\n        columns:1;\r\n        padding-left:20px;\r\n    }\r\n\r\n    .rbx-content table{\r\n        font-size:14px;\r\n        min-width:620px;\r\n    }\r\n\r\n    .rbx-content th,\r\n    .rbx-content td{\r\n        padding:11px 12px;\r\n    }\r\n}\r\n\r\n\/* =========================================================\r\n   SMALL MOBILE\r\n========================================================= *\/\r\n\r\n@media (max-width:420px){\r\n\r\n    .rbx-blog{\r\n        width:calc(100% - 10px);\r\n        border-radius:12px;\r\n    }\r\n\r\n    .rbx-hero .rbx-wrap,\r\n    .rbx-featured,\r\n    .rbx-body .rbx-wrap{\r\n        width:calc(100% - 20px);\r\n    }\r\n\r\n    .rbx-content{\r\n        font-size:16px;\r\n    }\r\n\r\n    .rbx-hero h1{\r\n        font-size:29px;\r\n    }\r\n}\r\n<\/style>\r\n\r\n\r\n<article class=\"rbx-blog\" itemscope itemtype=\"https:\/\/schema.org\/Article\">\r\n\r\n    <!-- HERO -->\r\n    <header class=\"rbx-hero\">\r\n        <div class=\"rbx-wrap\">\r\n\r\n            <p class=\"rbx-eyebrow\">\r\n                Saudi Real Estate Guide\r\n            <\/p>\r\n\r\n            <h1 itemprop=\"headline\">\r\n                Who Pays Real Estate Broker Commission in Saudi Arabia?\r\n            <\/h1>\r\n\r\n            <div class=\"rbx-meta\">\r\n                <span>Last reviewed: September 2026<\/span>\r\n                <span>Estimated reading time: 9 minutes<\/span>\r\n            <\/div>\r\n\r\n        <\/div>\r\n    <\/header>\r\n\r\n\r\n    <!-- FEATURED IMAGE -->\r\n    <figure class=\"rbx-featured\">\r\n\r\n        <img fetchpriority=\"high\"\r\n            src=\"https:\/\/alrossais.com\/wp-content\/uploads\/2026\/09\/\u0645\u0646-\u064a\u062f\u0641\u0639-\u0639\u0645\u0648\u0644\u0629-\u0627\u0644\u0648\u0633\u064a\u0637-\u0627\u0644\u0639\u0642\u0627\u0631\u064a-\u0641\u064a.png\"\r\n            alt=\"Buyer and seller reviewing who pays the real estate broker commission in Saudi Arabia\"\r\n            title=\"Who Pays Real Estate Broker Commission in Saudi Arabia\"\r\n            width=\"1536\"\r\n            height=\"1024\"\r\n            loading=\"eager\"\r\n            fetchpriority=\"high\"\r\n            decoding=\"async\"\r\n            itemprop=\"image\"\r\n        >\r\n\r\n        <figcaption>\r\n            Real estate brokerage commission depends on the written brokerage contract and the party that engaged the broker.\r\n        <\/figcaption>\r\n\r\n    <\/figure>\r\n\r\n\r\n    <!-- BODY -->\r\n    <main class=\"rbx-body\">\r\n\r\n        <div class=\"rbx-wrap rbx-content\" itemprop=\"articleBody\">\r\n\r\n            <p>\r\n                The party that signs the brokerage contract with the real estate broker is responsible for paying the commission in Saudi Arabia. Depending on who requested and contracted for the service, that party may be the seller, buyer, landlord or tenant. The law does not automatically assign every commission to the buyer or every rental commission to the tenant.\r\n            <\/p>\r\n\r\n            <p>\r\n                Under Article 14 of Saudi Arabia\u2019s Real Estate Brokerage Law, the standard commission is <strong>2.5% of the transaction amount for a sale<\/strong> and <strong>2.5% of the first year\u2019s rent for a lease<\/strong>, unless the parties to the brokerage contract agree otherwise in writing.\r\n            <\/p>\r\n\r\n\r\n            <blockquote>\r\n                <p>\r\n                    <strong>Quick answer:<\/strong> Check the brokerage contract, not market assumptions. It should identify the contracting party, the commission rate or amount, the basis of calculation and the payment terms.\r\n                <\/p>\r\n            <\/blockquote>\r\n\r\n\r\n            <!-- TOC -->\r\n            <nav class=\"rbx-toc\" aria-label=\"Article contents\">\r\n\r\n                <span class=\"rbx-toc-title\">\r\n                    Article contents\r\n                <\/span>\r\n\r\n                <ul>\r\n                    <li>\r\n                        <a href=\"#who-is-responsible-for-the-real-estate-brokerage-fee\">\r\n                            Who Is Responsible for the Real Estate Brokerage Fee?\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#how-much-is-the-real-estate-broker-commission-in-saudi-arabia\">\r\n                            How Much Is the Real Estate Broker Commission in Saudi Arabia?\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#what-should-the-brokerage-contract-say-about-commission\">\r\n                            What Should the Brokerage Contract Say About Commission?\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#when-does-a-real-estate-broker-earn-the-commission\">\r\n                            When Does a Real Estate Broker Earn the Commission?\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#how-is-commission-shared-when-the-broker-contracts-with-more-than-one-party\">\r\n                            How Is Commission Shared When the Broker Contracts With More Than One Party?\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#broker-commission-down-payment-and-security-deposit-what-is-the-difference\">\r\n                            Broker Commission, Down Payment and Security Deposit\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#three-practical-commission-scenarios\">\r\n                            Three Practical Commission Scenarios\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#common-mistakes-to-avoid\">\r\n                            Common Mistakes to Avoid\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#checklist-before-paying-a-property-broker\">\r\n                            Checklist Before Paying a Property Broker\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#frequently-asked-questions\">\r\n                            Frequently Asked Questions\r\n                        <\/a>\r\n                    <\/li>\r\n\r\n                    <li>\r\n                        <a href=\"#conclusion\">\r\n                            Conclusion\r\n                        <\/a>\r\n                    <\/li>\r\n                <\/ul>\r\n\r\n            <\/nav>\r\n\r\n\r\n            <h2 id=\"who-is-responsible-for-the-real-estate-brokerage-fee\">\r\n                Who Is Responsible for the Real Estate Brokerage Fee?\r\n            <\/h2>\r\n\r\n            <p>\r\n                Responsibility follows the brokerage contract. A property owner may appoint a broker to market a property, a buyer may retain a broker to locate a suitable asset, or a tenant may request assistance in finding premises. In each case, the contracting relationship determines who bears the fee.\r\n            <\/p>\r\n\r\n            <p>\r\n                This distinction matters because the parties to the property transaction and the parties to the brokerage contract are not always identical. A person should therefore review the actual brokerage arrangement before agreeing to pay a commission.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"does-the-seller-pay-the-broker-commission\">\r\n                Does the Seller Pay the Broker Commission?\r\n            <\/h3>\r\n\r\n            <p>\r\n                The seller pays when the seller has contracted with the broker and the brokerage contract makes the seller responsible for the fee. Ownership alone does not make the seller liable in every transaction; the written agreement remains the starting point.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"can-the-buyer-be-required-to-pay-the-commission\">\r\n                Can the Buyer Be Required to Pay the Commission?\r\n            <\/h3>\r\n\r\n            <p>\r\n                Yes. A buyer may be responsible when the buyer appoints a broker to search for, assess or help complete the purchase of a suitable property. The applicable amount and payment conditions should be stated in the brokerage contract.\r\n            <\/p>\r\n\r\n            <p>\r\n                Buyers preparing for a transaction can also review the\r\n                <a href=\"https:\/\/alrossais.com\/en\/how-to-buy-property-saudi-arabia-2026\/\">\r\n                    step-by-step guide to buying property in Saudi Arabia\r\n                <\/a>\r\n                without treating purchase procedures and brokerage commission as the same subject.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"does-the-landlord-or-tenant-pay-a-rental-broker-fee\">\r\n                Does the Landlord or Tenant Pay a Rental Broker Fee?\r\n            <\/h3>\r\n\r\n            <p>\r\n                Either may be responsible. The relevant question is whether the landlord, tenant or both entered into the brokerage arrangement. A rental listing by itself should not be used to assume that one side always pays; the brokerage contract and any written allocation of the commission should be checked.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"how-much-is-the-real-estate-broker-commission-in-saudi-arabia\">\r\n                How Much Is the Real Estate Broker Commission in Saudi Arabia?\r\n            <\/h2>\r\n\r\n            <p>\r\n                The statutory calculation under Article 14 is:\r\n            <\/p>\r\n\r\n\r\n            <div class=\"rbx-table-wrap\">\r\n                <table>\r\n                    <thead>\r\n                        <tr>\r\n                            <th>Transaction<\/th>\r\n                            <th>Standard calculation<\/th>\r\n                            <th>Written alternative<\/th>\r\n                        <\/tr>\r\n                    <\/thead>\r\n\r\n                    <tbody>\r\n                        <tr>\r\n                            <td>Property sale<\/td>\r\n                            <td>2.5% of the transaction amount<\/td>\r\n                            <td>The parties may agree otherwise in writing<\/td>\r\n                        <\/tr>\r\n\r\n                        <tr>\r\n                            <td>Property lease<\/td>\r\n                            <td>2.5% of the first year\u2019s rent only<\/td>\r\n                            <td>The parties may agree otherwise in writing<\/td>\r\n                        <\/tr>\r\n                    <\/tbody>\r\n                <\/table>\r\n            <\/div>\r\n\r\n\r\n            <p>\r\n                The 2.5% should not be described as an inflexible figure in every case because the law expressly recognises a different written agreement. Brokerage commission should also be kept separate from property price, rent, down payment, security deposit, tax and government or administrative charges.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"sale-commission-example\">\r\n                Sale Commission Example\r\n            <\/h3>\r\n\r\n            <p>\r\n                Assume a residential property is sold for SAR 1,200,000 and the brokerage contract applies a 2.5% commission:\r\n            <\/p>\r\n\r\n            <p>\r\n                <strong>SAR 1,200,000 \u00d7 2.5% = SAR 30,000<\/strong>\r\n            <\/p>\r\n\r\n            <p>\r\n                The contract should then identify which party pays that SAR 30,000 and when payment becomes due.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"lease-commission-example\">\r\n                Lease Commission Example\r\n            <\/h3>\r\n\r\n            <p>\r\n                Assume a commercial unit has first-year rent of SAR 120,000 and the brokerage contract applies a 2.5% commission:\r\n            <\/p>\r\n\r\n            <p>\r\n                <strong>SAR 120,000 \u00d7 2.5% = SAR 3,000<\/strong>\r\n            <\/p>\r\n\r\n            <p>\r\n                For the statutory calculation, the base is the first year\u2019s rent\u2014not the total rent across every year of a multi-year lease. Parties should nevertheless check whether their written brokerage contract contains different agreed terms.\r\n            <\/p>\r\n\r\n            <p>\r\n                These examples illustrate brokerage commission only. They do not calculate tax, property-transfer costs or other amounts that may apply to a particular transaction.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"what-should-the-brokerage-contract-say-about-commission\">\r\n                What Should the Brokerage Contract Say About Commission?\r\n            <\/h2>\r\n\r\n            <p>\r\n                The written contract is essential because it turns a general expectation into a defined obligation. The Real Estate Brokerage Law requires a brokerage contract to be in writing and deposited with the Real Estate General Authority (REGA). It must also have a definite term; if no term is stated, the law provides a 90-day term from the date of conclusion.\r\n            <\/p>\r\n\r\n            <p>\r\n                Before signing, the parties should be able to identify:\r\n            <\/p>\r\n\r\n            <ul>\r\n                <li>The broker and relevant licence information<\/li>\r\n                <li>The contracting party or parties<\/li>\r\n                <li>The property or requested service<\/li>\r\n                <li>The commission percentage or fixed amount<\/li>\r\n                <li>The value used to calculate the commission<\/li>\r\n                <li>Who is responsible for payment<\/li>\r\n                <li>When the commission becomes payable<\/li>\r\n                <li>The duration of the brokerage contract<\/li>\r\n                <li>Any written term that differs from the standard calculation<\/li>\r\n            <\/ul>\r\n\r\n            <p>\r\n                The Implementing Regulations also require the percentage or amount of the commission to be included in brokerage contracts made with owners, buyers, landlords or tenants, as applicable.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"when-does-a-real-estate-broker-earn-the-commission\">\r\n                When Does a Real Estate Broker Earn the Commission?\r\n            <\/h2>\r\n\r\n            <p>\r\n                Under Article 15, a broker is entitled to commission when the brokered transaction is completed in accordance with the brokerage contract during its validity. Entitlement may also arise when the transaction is completed within two months after the contract expires, provided the broker proves that the transaction resulted from the broker\u2019s work.\r\n            <\/p>\r\n\r\n            <p>\r\n                This prevents the due date from being assessed solely by looking at the date of the final sale or lease. The contract term, the broker\u2019s role and the connection between the brokerage work and the completed transaction may all be relevant.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"what-if-the-transaction-is-not-completed\">\r\n                What If the Transaction Is Not Completed?\r\n            <\/h3>\r\n\r\n            <p>\r\n                An incomplete transaction does not always produce the same result. The Implementing Regulations state that if the seller or landlord becomes entitled to the down payment without completion of the transaction, the broker is entitled to <strong>25% of that down payment<\/strong>, unless the parties agreed otherwise in the brokerage contract.\r\n            <\/p>\r\n\r\n            <p>\r\n                This is not a 25% commission on the property price. It is a separate rule tied to the down payment retained by the seller or landlord when the transaction is not completed.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"how-is-commission-shared-when-the-broker-contracts-with-more-than-one-party\">\r\n                How Is Commission Shared When the Broker Contracts With More Than One Party?\r\n            <\/h2>\r\n\r\n            <p>\r\n                The rules distinguish between one brokerage contract involving multiple parties and multiple brokerage contracts connected to the same transaction.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"one-contract-with-multiple-parties\">\r\n                One Contract With Multiple Parties\r\n            <\/h3>\r\n\r\n            <p>\r\n                When one brokerage contract is concluded with more than one party to the same transaction, the prescribed commission is divided equally between those parties unless they agree otherwise in that contract.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"separate-contracts-for-the-same-transaction\">\r\n                Separate Contracts for the Same Transaction\r\n            <\/h3>\r\n\r\n            <p>\r\n                When the broker has separate brokerage contracts with different parties, the amounts stated in those contracts and the allocation method in the Implementing Regulations apply. If no commission percentage is specified, the prescribed commission is divided equally among the relevant parties. The total commission remains subject to Article 14 and any valid written terms.\r\n            <\/p>\r\n\r\n            <p>\r\n                This is why buyers and sellers should ask whether the broker is acting for more than one party and review the written commission arrangement before completion.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"broker-commission-down-payment-and-security-deposit-what-is-the-difference\">\r\n                Broker Commission, Down Payment and Security Deposit: What Is the Difference?\r\n            <\/h2>\r\n\r\n\r\n            <div class=\"rbx-table-wrap\">\r\n                <table>\r\n                    <thead>\r\n                        <tr>\r\n                            <th>Payment<\/th>\r\n                            <th>Purpose<\/th>\r\n                            <th>Key point<\/th>\r\n                        <\/tr>\r\n                    <\/thead>\r\n\r\n                    <tbody>\r\n                        <tr>\r\n                            <td>Brokerage commission<\/td>\r\n                            <td>Payment for real estate brokerage<\/td>\r\n                            <td>Borne by the party contracting with the broker<\/td>\r\n                        <\/tr>\r\n\r\n                        <tr>\r\n                            <td>Down payment<\/td>\r\n                            <td>Amount connected to confirming a transaction and its completion terms<\/td>\r\n                            <td>It is not the broker\u2019s commission, and the broker may not retain it as security for commission<\/td>\r\n                        <\/tr>\r\n\r\n                        <tr>\r\n                            <td>Security deposit<\/td>\r\n                            <td>Amount connected to potential damage to leased property<\/td>\r\n                            <td>Separate from rent and brokerage commission<\/td>\r\n                        <\/tr>\r\n\r\n                        <tr>\r\n                            <td>Sale price or rent<\/td>\r\n                            <td>Consideration paid for the property or its use<\/td>\r\n                            <td>Paid under the sale or lease arrangement, not as brokerage compensation<\/td>\r\n                        <\/tr>\r\n\r\n                        <tr>\r\n                            <td>Taxes and other charges<\/td>\r\n                            <td>Separate statutory or transaction costs<\/td>\r\n                            <td>Should not be silently combined with the broker\u2019s fee<\/td>\r\n                        <\/tr>\r\n                    <\/tbody>\r\n                <\/table>\r\n            <\/div>\r\n\r\n\r\n            <p>\r\n                If a sale proceeds to registration, the parties can separately review the\r\n                <a href=\"https:\/\/alrossais.com\/en\/property-transfer-saudi-arabia-process\/\">\r\n                    property transfer process in Saudi Arabia\r\n                <\/a>.\r\n                That process has a different purpose from determining who pays the broker.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"three-practical-commission-scenarios\">\r\n                Three Practical Commission Scenarios\r\n            <\/h2>\r\n\r\n\r\n            <h3 id=\"scenario-1-an-owner-appoints-a-broker-to-sell\">\r\n                Scenario 1: An Owner Appoints a Broker to Sell\r\n            <\/h3>\r\n\r\n            <p>\r\n                An owner signs a brokerage contract authorising a licensed broker to market a property. The property sells for SAR 800,000 while the contract is valid. If the contract applies the standard 2.5% and assigns payment to the owner, the commission is SAR 20,000 and is borne by the owner.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"scenario-2-a-buyer-hires-a-broker-to-find-an-office\">\r\n                Scenario 2: A Buyer Hires a Broker to Find an Office\r\n            <\/h3>\r\n\r\n            <p>\r\n                A company asks a broker to locate an office that meets its budget, access and space requirements. The company signs the brokerage contract. If the broker completes the agreed service and the transaction is concluded under the contract, the company may be responsible for the stated commission even though it does not own the property.\r\n            <\/p>\r\n\r\n            <p>\r\n                Where a purchase depends on property financing, readers can separately review the\r\n                <a href=\"https:\/\/alrossais.com\/en\/real-estate-financing-saudi-arabia\/\">\r\n                    real estate financing guide in Saudi Arabia\r\n                <\/a>.\r\n                Financing arrangements are separate from the brokerage commission payable under the brokerage contract.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"scenario-3-a-broker-contracts-with-both-sides\">\r\n                Scenario 3: A Broker Contracts With Both Sides\r\n            <\/h3>\r\n\r\n            <p>\r\n                A broker has an arrangement involving both parties to one transaction. The parties should not rely on an informal assumption that each side will pay a full separate fee. They should review whether there is one contract or multiple contracts and how the commission is allocated under the applicable written terms and regulations.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"common-mistakes-to-avoid\">\r\n                Common Mistakes to Avoid\r\n            <\/h2>\r\n\r\n            <ul>\r\n                <li>Assuming the buyer always pays the broker<\/li>\r\n                <li>Assuming the property owner always pays<\/li>\r\n                <li>Describing 2.5% as an unchangeable amount despite a different written agreement<\/li>\r\n                <li>Calculating a rental commission on the whole multi-year lease instead of the first year\u2019s rent under the standard rule<\/li>\r\n                <li>Confusing commission with a down payment or security deposit<\/li>\r\n                <li>Failing to check the broker\u2019s licence information<\/li>\r\n                <li>Paying without reviewing the written contract and calculation base<\/li>\r\n                <li>Treating tax and other transaction costs as part of the commission without verification<\/li>\r\n            <\/ul>\r\n\r\n\r\n            <h2 id=\"checklist-before-paying-a-property-broker\">\r\n                Checklist Before Paying a Property Broker\r\n            <\/h2>\r\n\r\n            <ol>\r\n                <li>Verify the broker\u2019s identity and licence information.<\/li>\r\n                <li>Confirm that a written brokerage contract exists.<\/li>\r\n                <li>Identify every party to that contract.<\/li>\r\n                <li>Check who is required to pay the commission.<\/li>\r\n                <li>Review the percentage or fixed amount.<\/li>\r\n                <li>Confirm whether the calculation is based on sale value or first-year rent.<\/li>\r\n                <li>Check when the commission becomes due.<\/li>\r\n                <li>Keep the contract and proof of payment.<\/li>\r\n            <\/ol>\r\n\r\n            <p>\r\n                For a broader understanding of development, management, leasing and related property functions, visit\r\n                <a href=\"https:\/\/alrossais.com\/en\/real-estate-company\/\">\r\n                    Real Estate Company in Riyadh\r\n                <\/a>.\r\n                This guide remains limited to brokerage commission and does not present every real estate service as brokerage.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"frequently-asked-questions\">\r\n                Frequently Asked Questions\r\n            <\/h2>\r\n\r\n\r\n            <h3 id=\"who-normally-pays-the-real-estate-broker-commission-in-saudi-arabia\">\r\n                Who Normally Pays the Real Estate Broker Commission in Saudi Arabia?\r\n            <\/h3>\r\n\r\n            <p>\r\n                The party that contracted with the broker under the brokerage contract bears the commission. Depending on the arrangement, this may be the seller, buyer, landlord or tenant.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"what-percentage-do-real-estate-brokers-charge-in-saudi-arabia\">\r\n                What Percentage Do Real Estate Brokers Charge in Saudi Arabia?\r\n            <\/h3>\r\n\r\n            <p>\r\n                The standard commission is 2.5% of the transaction amount for a sale and 2.5% of the first year\u2019s rent for a lease, unless the parties agree otherwise in writing.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"is-the-buyer-always-responsible-for-the-broker-fee\">\r\n                Is the Buyer Always Responsible for the Broker Fee?\r\n            <\/h3>\r\n\r\n            <p>\r\n                No. The buyer is responsible when the buyer is the contracting party or the written arrangement assigns a share of the commission to the buyer. The law does not automatically place every commission on buyers.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"is-rental-commission-calculated-on-the-entire-lease-term\">\r\n                Is Rental Commission Calculated on the Entire Lease Term?\r\n            <\/h3>\r\n\r\n            <p>\r\n                Under the standard statutory calculation, it is based on the first year\u2019s rent only. A different arrangement must be assessed from the written brokerage contract.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"can-the-seller-and-buyer-share-the-commission\">\r\n                Can the Seller and Buyer Share the Commission?\r\n            <\/h3>\r\n\r\n            <p>\r\n                Yes, the written brokerage arrangement may allocate the commission between parties. Where one contract involves multiple parties and does not provide another allocation, the Implementing Regulations provide for equal division.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"can-a-broker-keep-the-down-payment-as-security-for-commission\">\r\n                Can a Broker Keep the Down Payment as Security for Commission?\r\n            <\/h3>\r\n\r\n            <p>\r\n                No. The Real Estate Brokerage Law states that a broker may not retain the transaction down payment as security for the broker\u2019s commission.\r\n            <\/p>\r\n\r\n\r\n            <h3 id=\"can-commission-be-due-after-the-brokerage-contract-expires\">\r\n                Can Commission Be Due After the Brokerage Contract Expires?\r\n            <\/h3>\r\n\r\n            <p>\r\n                It may be due if the transaction is completed within two months after expiry and the broker proves that the transaction resulted from the broker\u2019s work.\r\n            <\/p>\r\n\r\n\r\n            <h2 id=\"conclusion\">\r\n                Conclusion\r\n            <\/h2>\r\n\r\n            <p>\r\n                The correct answer to \u201cwho pays the real estate broker commission in Saudi Arabia?\u201d is found in the brokerage contract. The payer is the party that contracted with the broker, rather than a party selected automatically because they are the buyer, seller, landlord or tenant.\r\n            <\/p>\r\n\r\n            <p>\r\n                The standard calculation is 2.5% of the sale amount or 2.5% of the first year\u2019s rent, unless the parties agree otherwise in writing. Before paying, verify the broker\u2019s licence, read the contract, confirm the calculation base and distinguish the commission from the down payment, security deposit, tax and other transaction costs.\r\n            <\/p>\r\n\r\n\r\n            <hr>\r\n\r\n\r\n            <div class=\"rbx-source\">\r\n\r\n                <p>\r\n                    <strong>Official references:<\/strong>\r\n                    <a href=\"https:\/\/rega.gov.sa\/en\/laws-and-decisions\/regulations-and-by-laws\/rules\/real-estate-brokerage-law\/\" rel=\"noopener\">\r\n                        Saudi Real Estate Brokerage Law\r\n                    <\/a>\r\n                    and\r\n                    <a href=\"https:\/\/rega.gov.sa\/en\/laws-and-decisions\/regulations-and-by-laws\/regulations\/implementing-regulations-of-real-estate-brokerage-law\/\" rel=\"noopener\">\r\n                        Implementing Regulations of the Real Estate Brokerage Law\r\n                    <\/a>,\r\n                    published by the Real Estate General Authority.\r\n                <\/p>\r\n\r\n            <\/div>\r\n\r\n\r\n            <div class=\"rbx-note\">\r\n\r\n                <p>\r\n                    <strong>Editorial note:<\/strong>\r\n                    This article provides general educational information and is not legal, tax or financial advice. A particular transaction should be assessed using its contracts, documents and applicable official requirements.\r\n                <\/p>\r\n\r\n                <p style=\"margin-bottom:0;\">\r\n                    <strong>Last reviewed:<\/strong> September 2026\r\n                <\/p>\r\n\r\n            <\/div>\r\n\r\n        <\/div>\r\n\r\n    <\/main>\r\n\r\n<\/article>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Saudi Real Estate Guide Who Pays Real Estate Broker Commission in Saudi Arabia? Last reviewed: September 2026 Estimated reading time: 9 minutes Real estate brokerage commission depends on the written brokerage contract and the party that engaged the broker. The party that signs the brokerage contract with the real estate broker is responsible for paying the commission in Saudi Arabia. Depending on who requested and contracted for the service, that party may be the seller, buyer, landlord or tenant. The law does not automatically assign every commission to the buyer or every rental commission to the tenant. Under Article 14 of Saudi Arabia\u2019s Real Estate Brokerage Law, the standard commission is 2.5% of the transaction amount for a sale and 2.5% of the first year\u2019s rent for a lease, unless the parties to the brokerage contract agree otherwise in writing. Quick answer: Check the brokerage contract, not market assumptions. It should identify the contracting party, the commission rate or amount, the basis of calculation and the payment terms. Article contents Who Is Responsible for the Real Estate Brokerage Fee? How Much Is the Real Estate Broker Commission in Saudi Arabia? What Should the Brokerage Contract Say About Commission? When Does a Real Estate Broker Earn the Commission? How Is Commission Shared When the Broker Contracts With More Than One Party? Broker Commission, Down Payment and Security Deposit Three Practical Commission Scenarios Common Mistakes to Avoid Checklist Before Paying a Property Broker Frequently Asked Questions Conclusion Who Is Responsible for the Real Estate Brokerage Fee? Responsibility follows the brokerage contract. A property owner may appoint a broker to market a property, a buyer may retain a broker to locate a suitable asset, or a tenant may request assistance in finding premises. In each case, the contracting relationship determines who bears the fee. This distinction matters because the parties to the property transaction and the parties to the brokerage contract are not always identical. A person should therefore review the actual brokerage arrangement before agreeing to pay a commission. Does the Seller Pay the Broker Commission? The seller pays when the seller has contracted with the broker and the brokerage contract makes the seller responsible for the fee. Ownership alone does not make the seller liable in every transaction; the written agreement remains the starting point. Can the Buyer Be Required to Pay the Commission? Yes. A buyer may be responsible when the buyer appoints a broker to search for, assess or help complete the purchase of a suitable property. The applicable amount and payment conditions should be stated in the brokerage contract. Buyers preparing for a transaction can also review the step-by-step guide to buying property in Saudi Arabia without treating purchase procedures and brokerage commission as the same subject. Does the Landlord or Tenant Pay a Rental Broker Fee? Either may be responsible. The relevant question is whether the landlord, tenant or both entered into the brokerage arrangement. A rental listing by itself should not be used to assume that one side always pays; the brokerage contract and any written allocation of the commission should be checked. How Much Is the Real Estate Broker Commission in Saudi Arabia? The statutory calculation under Article 14 is: Transaction Standard calculation Written alternative Property sale 2.5% of the transaction amount The parties may agree otherwise in writing Property lease 2.5% of the first year\u2019s rent only The parties may agree otherwise in writing The 2.5% should not be described as an inflexible figure in every case because the law expressly recognises a different written agreement. Brokerage commission should also be kept separate from property price, rent, down payment, security deposit, tax and government or administrative charges. Sale Commission Example Assume a residential property is sold for SAR 1,200,000 and the brokerage contract applies a 2.5% commission: SAR 1,200,000 \u00d7 2.5% = SAR 30,000 The contract should then identify which party pays that SAR 30,000 and when payment becomes due. Lease Commission Example Assume a commercial unit has first-year rent of SAR 120,000 and the brokerage contract applies a 2.5% commission: SAR 120,000 \u00d7 2.5% = SAR 3,000 For the statutory calculation, the base is the first year\u2019s rent\u2014not the total rent across every year of a multi-year lease. Parties should nevertheless check whether their written brokerage contract contains different agreed terms. These examples illustrate brokerage commission only. They do not calculate tax, property-transfer costs or other amounts that may apply to a particular transaction. What Should the Brokerage Contract Say About Commission? The written contract is essential because it turns a general expectation into a defined obligation. The Real Estate Brokerage Law requires a brokerage contract to be in writing and deposited with the Real Estate General Authority (REGA). It must also have a definite term; if no term is stated, the law provides a 90-day term from the date of conclusion. Before signing, the parties should be able to identify: The broker and relevant licence information The contracting party or parties The property or requested service The commission percentage or fixed amount The value used to calculate the commission Who is responsible for payment When the commission becomes payable The duration of the brokerage contract Any written term that differs from the standard calculation The Implementing Regulations also require the percentage or amount of the commission to be included in brokerage contracts made with owners, buyers, landlords or tenants, as applicable. When Does a Real Estate Broker Earn the Commission? Under Article 15, a broker is entitled to commission when the brokered transaction is completed in accordance with the brokerage contract during its validity. Entitlement may also arise when the transaction is completed within two months after the contract expires, provided the broker proves that the transaction resulted from the broker\u2019s work. This prevents the due date from being assessed solely by looking at the date of the final sale or lease. The contract term, the broker\u2019s role and the connection between the brokerage work and the completed transaction may all<\/p>\n","protected":false},"author":4,"featured_media":22955,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-22966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-71"],"acf":[],"_links":{"self":[{"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/posts\/22966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/comments?post=22966"}],"version-history":[{"count":27,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/posts\/22966\/revisions"}],"predecessor-version":[{"id":22998,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/posts\/22966\/revisions\/22998"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/media\/22955"}],"wp:attachment":[{"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/media?parent=22966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/categories?post=22966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alrossais.com\/en\/wp-json\/wp\/v2\/tags?post=22966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}