The Legal Characterization of Electronic Real Estate Brokerage Contract and Its Compliance with the Saudi Real Estate Brokerage Law
Law Department, College of Business Administration, Prince Sattam bin Abdulaziz University, Al-Kharj 11942, Saudi Arabia.
Abstract
The current research will consider the adequacy of legal and regulatory framework regulating electronic real estate brokerage agreements under Saudi law against the backdrop of fast technological advancement and extensive use of digital technologies. This paper aims to discuss such questions as the nature of electronic contracts; evidentiary sufficiency of deals, their enforcement, and allocation of liability in electronic brokerage; and other important aspects associated with the issue under consideration, especially concerning transactions performed via automated platforms and electronic contracting systems. The methodology used is legal comparative analysis of relevant Saudi legal provisions and international regulatory practice. Based on the results of the research, it has become evident that even though Saudi law recognizes electronic real estate brokerage and provides for relatively simple regulation of these issues, several problems need to be addressed. They include a lack of evidentiary regulations, low level of responsibility for digital platforms, inefficiency of existing mechanisms of disputes resolution, as well as an absence of guidelines that regulate the allocation of liabilities between brokers, digital platform, and clients. Thus, the research concludes that there is currently no sufficient regulatory provision to enable the governance of digital intermediaries or transaction transparency. Therefore, it is crucial to improve the present state of affairs through better definition of electronic contracts, development of rules related to digital certification, and setting of standards for electronic brokerage platforms. It would help maintain legal certainty and protect consumers' rights, thus fostering further development of the industry.