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Do I need a real estate office to document a lease on Ejar?

Short answer

Yes, if the lease is new: a new lease on the Ejar platform is created from the account of a licensed real estate broker registered on Ejar, and is documented once the lessor and tenant approve it. Renewing an existing lease, however, can be done by the lessor or the tenant from their own account without an office. The documentation fee falls on the lessor (SAR 125 per year for a residential lease), the office’s commission is separate, and the Real Estate Brokerage Law requires the brokerage contract to be in writing and deposited with the Real Estate General Authority (REGA).

Why a new lease goes through a broker

Ejar’s FAQ explains that leases are documented through an accredited real estate broker because the broker is responsible for checking the parties’ eligibility and the lessor’s ownership documents. Ejar adds that a lessor can complete the registration personally only by meeting the requirements to join Ejar as an accredited broker, which include a valid FAL brokerage licence.

According to REGA’s service page, the lease is entered in five sections: contract details, parties, financial details, terms and conditions, and properties and units. The lease is then previewed and the brokerage agreement reviewed, the fee is paid by the lessor or the broker, and the lease is sent to both parties for approval. The lessor needs a valid ID, the property’s ownership documents and a mobile number registered with Absher; the tenant needs a valid ID and an Absher-registered mobile number.

What does not need an office once the lease is documented

Once a lease is documented, most of its services are handled from the parties’ own Ejar accounts:

  • Renewal (re-conclusion): the lessor or tenant selects the lease in their Ejar account and sends it to the other party, who accepts and enters a verification code; the fee is paid from the Ejar wallet.
  • Ending the lease by mutual agreement: one party files the request on Ejar and the other approves it, at no charge.
  • The receipt and handover form: filled in by the lessor and tenant, or their representatives registered on the lease, not by the broker.
  • One exception: moving leases to a new owner through the Change of Lessor service after a sale is done by the real estate broker.

Who pays what

The documentation fee is on the lessor: SAR 125 per contract year for a residential lease, and SAR 200 for the first year then SAR 400 for each additional year for a commercial lease; on Ejar only the lessor or the broker can pay it. When the lease is documented, Ejar shows the lessor the brokerage agreement with the office to review and approve together with the lease, and creates one automatically if no valid agreement exists for the unit.

The office’s commission is a separate matter. For a lease, the Real Estate Brokerage Law sets it at 2.5% of the first year’s rent only, unless agreed otherwise in writing, payable by the party that contracted the broker (Article 14). The law defines a brokerage contract as an agreement to complete a property deal or provide a real estate service, and requires it to be written and a copy deposited with REGA, or it cannot be relied on (Article 7). If you found the tenant yourself and only need the lease documented, agree the office’s charge in writing before it starts.

Steps

  1. Agree the term, rent, payment cycle and any security deposit with the other party.
  2. Choose an office and check its licence with the “Enquiring about the FAL License” service on REGA’s Real Estate Enquiries page, using the broker’s ID number or the establishment number.
  3. Agree the office’s charge in writing, and give it your ID, the property’s ownership document and the IBAN the rent should be paid into.
  4. The office enters the lease and the documentation fee is paid; the lessor and tenant then receive a text message to review the lease.
  5. Review the lease details and the brokerage agreement and approve; the lease is documented as soon as both parties approve.
Calculate it: Ejar Lease Fees CalculatorEjar documentation fees: SAR 125 per year residential, SAR 200 then 400 commercial.Calculate it: Real Estate Brokerage Commission CalculatorBroker commission on sales and leases (2.5%) with VAT.

Follow-up questions

Can the tenant document the lease if the landlord refuses?

The tenant cannot create the lease alone, but the statutory provisions give the tenant the right to request registration of an unregistered lease, and Ejar’s Request to Register a Rental Incident service can be used when one party refuses; it is not a documented lease or an executive instrument.

Is it different for a commercial lease?

Not in needing a broker to create a new lease. Commercial leases have had to be registered on Ejar since February 2020, and their fee is SAR 200 for the first year then SAR 400 for each additional year.

What does an office need to document leases on Ejar?

It needs a FAL licence from REGA, which you can check yourself with the enquiry service. To register a brokerage firm on Ejar, REGA also requires a valid commercial registration that includes real estate brokerage as an activity, acceptance of the joining agreement, and completion of Ejar’s training course.

Official sources

General information for guidance, not legal advice; the governing regulations and official bodies are the final reference.

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