The Real Estate General Authority, the regulations for real estate auctions, set 5% of the value of the property as a maximum entry value in real estate auctions. This is according to the draft regulation presented on the “Istishla” platform.
The project confirmed that the following conditions are required for licensing to practice the real estate auctions service for the establishments that they provide through electronic means: linking the electronic real estate auction platform of the licensee with the electronic platform of the Authority, and undertaking to ensure the integrity of the operations that take place in the licensee’s platform, and stopping or returning the real estate auction in the deals that It is marred by technical errors or irregularities, to ensure the protection of supply and demand competitiveness.
The project included an undertaking to publish all data of real estate auctions held on the licensee’s platform in the Authority’s electronic platform, and to obtain all necessary statutory licenses to practice the activity from the relevant authorities, linking the electronic platform with the national access platform, and the beneficiaries’ entry to the electronic means through it.
The regulation stressed that the licensee to practice the real estate auctions service must be honest and sincere, deal impartially and fairly, not affect fair competition in any way, exercise professional care with diligence and sincerity to achieve the best prices, keep all real estate auction bulletins and records, record video auction events, and documents. And data for all his dealings for a period of five years from the date of the end of the real estate auction. The licensee is obligated to hold the real estate auction, during the period of validity of the brokerage contract, to obtain the necessary approvals from the competent authorities in holding the real estate auction, and to announce the real estate auction bulletin at least five days before the date of its holding.
The regulations clarified that the licensee must include the mediation contract to provide the real estate auction service, with several information clarified, including: the method of conducting the real estate auction, its date, duration, the type of real estate disposal, the minimum acceptable award value for disposing of the real estate after the auction, and the minimum value for starting the real estate auction, The bidding amount, if any, provided that the amount does not exceed 5% of the estimated value of the property. Based on an evaluation by an accredited valuer, the time period specified for awarding the highest price after the auction and the possibility of extending it for a similar period once, and the mechanisms and periods for receiving and delivering the price after the award. The regulations indicated that the licensee, when submitting a request to the Authority to hold a real estate auction on the Authority’s electronic platform, must fill out the approved form at least 15 days before holding it, and that the Authority should study the application for holding a real estate auction within a period not exceeding five working days from the completion of the application, and the Authority may, when needed, have any Additional data or documents you deem necessary, notify the applicant, and he must complete what is necessary within a period not exceeding five working days from the date of being notified of that.