The Real Estate General Authority (REGA) launched, on Monday, 21 April 2025, the “Broker-to-Broker Sub-Contract” service, which enables the creation and documentation of relationships between real estate brokers through a sub-brokerage contract concluded between the main broker and the sub-broker. The contract defines all obligations and financial rights between the brokers, outlines the mechanism for earnest money distribution, and establishes mutual contract approval. It allows the main broker to create multiple contracts with various brokers to market the property. This contract represents the third type of brokerage contract, alongside the broker-owner contract and the broker-buyer contract. It aims to document and govern the relationship between brokers, increase reliability and transparency throughout the real estate transaction process, and clearly define the obligations and rights of all parties at every stage of the transaction.
REGA explained that this service is part of a series of offerings designed to empower real estate brokers to conduct brokerage and marketing activities while ensuring greater compliance with the Real Estate Brokerage Law’s provisions and regulations, organizing the real estate market, and enhancing its investment appeal. The broker-to-broker sub-contract can be utilized by the "main broker" by accessing the contracts section on the Real Estate Brokerage Platform, selecting an existing brokerage contract with the property owner, creating a sub-contract, selecting the ownership documents upon which the sub-contract will be based, and entering the basic information of the sub-broker along with the agreed-upon details.
REGA emphasized that creating a sub-contract requires an active brokerage contract with the property owner and a valid FAL License for brokerage and marketing activities for the sub-broker. It is also necessary to ensure that the sub-contract’s expiration date does not exceed that of the main contract, and that the licenses of both the main broker and the sub-broker remain valid throughout the contract period.
It is worth noting that the FAL Real Estate License is the official document that authorizes individuals and establishments to practice brokerage activities and real estate services under the Real Estate Brokerage Law. The law aims to regulate the brokerage sector, provide innovative and high-quality real estate services to beneficiaries, enhance the quality of real estate transactions, support the sustainability of real estate assets, reduce disputes, and protect the rights of all market participants.