Public Auction
Synonyms: Open Auction، Public Sale by Auction، Open Outcry Auction، Public Bidding
Last updated: 2026-09-25
Short Definition
A public auction is an auction open to anyone meeting the participation requirements, with bids made openly and the property awarded to the highest bidder; it is the default form in Saudi law, which defines a real estate auction as «public bidding».
Overview
Legal Basis
Article 1 of the Real Estate Brokerage Law, issued by Royal Decree No. (M/130) dated 30/11/1443H, defines real estate auctions as the activity of public bidding on a property. REGA's Real Estate Auctions Regulation (REGA Board decision of 1/12/1444H) requires the auction bulletin to be announced at least five days in advance (Art. 3/8), the auction request to be filed at least fifteen days in advance (Art. 6), and the bulletin to be listed on REGA's platform before publication (Art. 8). Article 50(1) of the Execution Law (M/53 dated 13/8/1433H) requires announcement 15–30 days ahead on the execution data website and by posting, and Article 51 prohibits influencing prices. Article 30(1) of the new Execution Law (M/237) requires seized assets to be sold by public auction, except for voluntary sales and cases specified by the regulation.
Practical Example
The Execution Court orders a seized plot in Buraidah, valued at SAR 850,000, to be sold at public auction. The auction is announced on the execution data website and by posting on the plot 25 days in advance, and the judge orders a notice in a daily newspaper, its cost deducted from the sale proceeds. Fourteen bidders qualify; bidding opens at SAR 850,000 and closes at SAR 910,000. It later emerges that two bidders agreed not to bid against each other, so the judge asks the Public Prosecution to investigate suspected collusion under Article 51 of the Execution Law.
Common Mistakes
- ✗Assuming a public auction must be held in person — an online auction open to registered bidders is also public.
- ✗Shortening the announcement period below the legal minimum — at least five days for the bulletin in voluntary auctions, and 15–30 days in judicial sales.
- ✗Believing publicity guarantees a fair price — weak turnout or poor disclosure can still produce a low price.
- ✗Bidders agreeing to share properties or not to compete — collusion prohibited and penalized under the Execution Law.
- ✗Publishing auction adverts without first listing the bulletin on REGA's platform.
International Differences
The public auction is the basic form of judicial sale in most countries. In Turkey, açık artırma in enforcement sales is conducted electronically after prior announcement. In Egypt, bidding in forced sales takes place at a public session before the sales judge. In the UAE, judicial auctions are announced and conducted through auction companies, both in person and online. The Saudi model is distinctive in extending publicity to voluntary auctions as well, through registration on REGA's platform and publication of auction indicators, not only to judicial sales.
