Auctioneer
Synonyms: Auction Manager، Auction Caller، Sales Agent (judicial sales)، Licensed Auctioneer
Last updated: 2026-09-25
Short Definition
An auctioneer is the qualified person who conducts the bidding, announces bids and awards the sale to the highest bidder; Saudi rules call this person the «real estate auction manager», who must work for a licensed establishment and be registered with REGA.
Overview
Legal Basis
Article 1 of REGA's Real Estate Auctions Regulation (REGA Board decision of 1/12/1444H) defines the «licensee» as a legal person licensed to provide real estate auction services and the «real estate auction manager» as a qualified natural person affiliated with the licensed establishment and authorized to manage all auction work; Article 3 requires integrity, neutrality and service by qualified registered individuals; and Article 9 governs the manager's conduct of bidding. Article 2(3)–(4) of the Implementing Regulation of the Real Estate Brokerage Law (M/130) restricts auctions to licensed establishments and requires completion of the qualifying programme. Article 356 of the Civil Transactions Law bars a broker from buying for himself, even at auction. Article 61 of the new Execution Law, issued by Royal Decree No. (M/237), lists the judicial sales agent among execution service providers licensed by the Ministry of Justice.
Practical Example
Noura works as an auction manager at a licensed auction establishment in Jeddah after passing the qualifying programme and registering on REGA's platform. Named in the auction request for a residential plot, she opens the bidding at the contract's opening value of SAR 900,000, manages bids up to SAR 1,040,000, extends the award period once and, with no higher bid, awards the auction. Later a relative asks her to buy the plot in his name if the price stays low; she refuses, because the law bars anyone entrusted with a sale from buying for himself or in another's name. The establishment earns its commission under the brokerage contract, while Noura is paid her salary by the establishment.
Common Mistakes
- ✗Assuming an individual can hold an auction licence in his own name — auction services are restricted to licensed establishments, and the individual works as an auction manager for one.
- ✗Having an auction run by someone not registered with REGA or who has not passed the qualifying programme.
- ✗Extending the award period more than once to favour a particular bidder — a breach of the regulation and of neutrality.
- ✗The auction manager or broker buying the property for himself or through a relative — prohibited by the Civil Transactions Law.
- ✗Assuming commission is the auction manager's personal entitlement — it is earned by the licensed establishment under the brokerage contract.
International Differences
Regulation of auctioneers differs between countries. In the United States, many states require an individual auctioneer licence. In the UK there is no specific licence for property auctioneers, but auction houses are subject to consumer protection and advertising rules. In Turkey, enforcement auctions are conducted by official enforcement offices. The Saudi model is distinctive in licensing the establishment rather than the individual, while requiring the auction manager to be qualified and registered with REGA, and in having the Ministry of Justice license judicial sales agents under the new law.
