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Self-Reflection of The Saudi Real Estate Institute (Real Estate Inter-mediation) Training Course

 

Description:

Event: Saudi Real Estate Course

Date: 14th and 15th of November 2018

Organizer: Business Administration Club 

Presenter: Nouf bint Ibrahim Alseadan

Location: Princess Nora University, Business Administration Faculty’s Hall


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We were told about this training course by our teacher Souad Alghamdi, who I am really thankful to for letting us know about such an informative experience. First of all, we had to register because the number of seats was limited, there were organizing girls who helped us to check in by scanning the bar-codes we got. As soon as we arrived to the hall a training booklet was distributed on attendees, the booklet contained the topics to be discussed by the real estate intermediary Nouf Alseadan and to make sure that everyone fully understands the topics and to stay focused. Over a total of eight training hours in two days Ms. Nouf explained the role of the Saudi Real Estate Institute and how no one can become a real estate intermediary without passing the test at the end of this course. She mainly focused on the rules and regulations regarding real estate in Saudi Arabia and she gave us real life examples, which helped us to link information in logical and sequenced way.

I listened to her enthusiastically and I was able to participate and ask questions to deepen and correct my understanding of the subject. However, what surprised me the most was the presence of senior female students with deep interest and knowledge about the subject and that made me proud. During the course we were given some questions about recent conferences related to real estate. Moreover, we were asked to give general information about real estate so Ms. Nouf can find how much we knew about it and we had to give examples throughout the course about different topics, we brain stormed some examples which I consider it a useful mental exercise. Ms. Nouf informed us that at the end of the second day of the course we will undergo a test and those who pass it will be accredited as registered real estate intermediaries and their names will be listed in the Saudi Real Estate Institute official website.

To start with I felt really excited to attend this course and what made more excited was what our teacher told us about the benefits of going. I went to the training course mainly because it was about a field that I am interested in, but I did not have the opportunity to discover, learning brokerage skills was another reason and to know more about recent approaches and transfers that shapes the market. In addition, one of the most important reasons for me attending training courses other that benefiting from the presented content is to check how the trainer handles audience, how the content is delivered and the presenting skills. I assure that this course is going to help me enriching my personal development plan, attending was a great opportunity and I will continue developing my skills accordingly helping me to produce beneficial long term gains in future. After this course ended, I was truly satisfied with the overall content and I knew that women are equal to men in this field. To end with, I conceived what said in the course, such as women need to pay attention to details and be careful, because some people underestimate them especially in the field of real estate with a presence of prejudice that men are the best in real estate.


In the first day,

The main topic were discussed was importance of taking this training course and how now only those who took the course and passed the related test are certified real estate intermediaries and can be found in EJAR which is program launched by the Saudi Ministry of Housing in order to overcome variety of problems related to defective contracts, fraud, lack of efficient information, etc. Saudi Real Estate Institute’s vision, mission objectives were explained along with the objectives of the session. After that, related field terms were defined such as, real estate, contract, mediation, legitimacy, etc.

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(Note: The video is in Arabic)

Ms. Nouf gave recent events happening in the market such as, Alajlan auction which is an auction presented by Abdulsalam Alajlan Group for Investment and Real Estate Marketing that took place in Alrasafah Palace in Buraydah on ten residential villas and the auction ended successfully with the all of the ten villas being sold. (Abdulsalam Alajlan Real Estate Investment and Marketing, 2018).

(Note: The video is in Arabic)

Another example was the use of 3D technique in building houses that help in cost reduction, raising quality and increasing local diversity, first experiment of the technique was carried out by Dutch experts with the participation of five Saudi engineers. (AlArabiya, 2018). Elements of real estate production and real estate market were explained in detail, in this part actually there were lots of new information I learned including real estate is linked to different government agencies like Ministry of Justice and Ministry of Municipal & Rural Affairs. Other than that, I learned that lands on which residential buildings are going to build on are far expensive than those with commercial buildings built on them. Use of real estate can be for resident, commerce and public sector (The Government) and how prices differ whether the road in front the building was residential or commercial. 

The characteristics of real estate actually was familiar for me, I studied it in my law course before. Second Ring Riyadh Project announced by Riyadh Municipality and how it can affect prices nearby in north of Riyadh. Real estate is subjected to taxation and a white land which means empty lands pays 2.5% of their market value. Ms. Nouf told us that most expensive real estate deals in the world are centered in London, Tokyo and Makkah and she gave reasons why, London is expensive because it is located at the center of the European region, Tokyo is a longitudinal city with mountains and Makkah is expensive because it is a holy city. 

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Real estate intermediary can be in selling, buying, leasing, real estate development and financing deals. The real estate should be valued with credibility by a trustworthy valuer certified by the Saudi Authority for Accredited Valures. (Saudi Authority for Accredited Valures, 2018). The amount that the intermediary gets is 2.5% of the real estate price this is the norm in Saudi Arabia, however it differ elsewhere. Ms. Nouf affirmed the importance of Real estate intermediary to have different skills such as, negotiation, real estate marketing, pricing and most importantly is having good social skills. Ms. Nouf suggested application called (Aqar) or Real estate in English that we can use to train our self and discover. The term Real Estate Marketing and types of real estate inter-mediation was explained. Then we discussed requirements and conditions of contracts, which I learnt before in my law course.


The second day, 

It was light and short day, we were told beforehand that in the last hour we will be taking a test, so we came prepared. Ms. Nouf started the session with a brief revision and asked us about general terms and information we learnt yesterday. Then she compared between different types of contracts, they mainly divided into bound contracts that one party cannot cancel it without the consent of the other party including, selling and purchasing contracts, other contracts one party can withdraw without the need of the other party’s consent like, company contract, leasing contract including the intermediary contract. 

After that, we discussed commitments of renter, tenant and real estate intermediary. Rules and regulations related to real estate can be directly or indirectly related. Problems related to real estate are prosecuted in commercial courts, however based on article written by Dr. Mohammad Aljathlani suggested with the importance of real estate and growing of problems related to, there is a need for creating and organizing a real estate court. Therefore, to reduce the burden on commercial court and solve real estate issues with great and focused specialty. (Aljathlani, 2017).

We took the test in the last hour of the session and we were given attendance certificates. And those who pass the test can get a real estate intermediary certificate. Throughout this training course I learned new information, however it turned out that some of the content presented I studied before such as law and skills requirement sections, I studied them in detain in my law and organizational behavior courses and that was a great help to understand the context. Actually, this course can help me to enrich my resume and if I get the approval certificate I plan to work part time in real estate field. Moreover, I believe it can help me a lot knowing that I am a business administration student; my studies revolve around commerce, investment, organizations, etc.


Evaluation:

If I had to evaluate my experience, I was truly and amazingly satisfied. Students attending the course opened informative and interesting debates with Ms. Nouf such as the prices and situation of real estate here in Saudi Arabia, whether we can intermediate in other countries and the credibility of banks in requirements and conditions provided. 

My experience was extremely rewarding, I  learned about REITs which means Real Estate Investment Traded Funds they are companies who own, finance or operate an income producing real estate, presenting great opportunities for investors to access such chances and help communities and economics to grow. (Tadawul, 2018). 

Ms. Nouf informed us that when the real estate market collapses the country’s economy collapses in turn resulting poverty, famine and endless problems. I previously assumed that real estate problems can be solved easily, and now Know that it is way bigger than I imagined. I totally agree with her, according to an article I read in stock picks system about the 2007 crash of the housing market in US, that nearly caused a depression on the US economy and affected more than half  of the US states. (DeGrace,2011).Knowing this made me thankful and proud that we are living in country that always prioritize their citizens and try their best so they can live in best conditions. 

Moreover, I strongly agree with the importance of taking this training course to overcome problems that can destroy our country without even realizing. Knowing that Saudi Arabia is acknowledging the importance of the real state intermediate and that it took a great step of providing such training courses presented by the Saudi Real Estate Institute lunched by Ministry of Housing makes me really proud. I predict a very bright and successful future of the Saudi economy current reforms and future projects in a field that the country value. 

Although the training course was a good learning experience where I was able to correct some false assumptions and learn new things. I acknowledge the great help the organizing girls have done, but I was a bit disappointed with them distracting the attendance, however I am really thankful for them to help students enter the hall, find places and even serving them some snacks. 

I now realize that real estate intermediaries are skilled, educated, intelligent and social people. However, there are some who use crooked ways to win more, but I hope that they are very few and would not affect the good ones. Finally, whether or not I have passed the test and became a real estate intermediary I will try my best to follow the rules and be honest and explicit but not to the extent that make me rude. I recognize the importance of continually updating my knowledge on this field by reading more and be up to date to regulations related to real estate. I will make sure to convey information I learned to people around me so I make full use of beneficial knowledge and spread awareness.


References:

  1. Alajlan, (2018), “Abdulsalam Alajlan Gropu Auction”. (Online Video) Available at: https://youtu.be/S3mFt5fc-M0
  2. AlArabiya, (2018), “Building houses using 3D technique”. (Online Video)Available at: https://youtu.be/uHcpOExW-5U
  3. Aljathlany, M. (2017), “Real Estate Court is a Need” Riyadh newspaper (Online) Available at:http://www.alriyadh.com/1690826
  4. DeGrace, T. (2011), “THE HOUSING MARKET CRASH OF 2007 AND WHAT CAUSED THECRASH”StockPickcom(Online)Available at: http://www.stockpickssystem.com/housing-market-crash-2007/
  5. Ejar, (2018), “Ejar vision, mission and objectives” com (Online) Available at: https://ejar.sa/ar/page/61
  6. Saudi projects, (2018), “Second Ring Riyadh Project” Saudi net(Online) Available at: http://www.saudiprojects.net/?project=الدائري-الثاني-لمدينة-الرياض
  7. Saudi Real Estate Institute, (2018) “Saudi Real Estate Institute: Vision, Mission and Objectives” (Online) Available at: https://srei.sa/en/about/
  8. Tadawul, (2018), “Real Estate Investment Traded Funds – REITs” (Online) Available at:https://www.tadawul.com.sa/wps/portal/tadawul/knowledge-center/about/reits
  9. Taqeem, (2018), “Saudi Authority for accredited valuers: About the authority” Taqeem.sa (Online) Available at:http://taqeem.gov.sa/about/Pages/aboutus.aspx
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