Non-compliance with REGA standards can result in severe penalties for brokers, including:
License Suspension: Brokers may face suspension of their license for up to one year.
Delicensing: In more severe cases, a broker's license may be permanently revoked.
Financial Penalties: Fines can reach up to SAR 200,000 for violations. If a broker repeats the violation within three years, penalties may be doubled.
Security Deposit Violations: Failure to submit the required security amount to the Authority can lead to fines or license revocation.
Legal Consequences: Brokers violating REGA standards might also face legal actions from clients or the Ministry of Justice.
To avoid these consequences, it is crucial for brokers to adhere strictly to all relevant regulations and standards set by REGA.