Summary
From paying a deposit before checks to relying on an unlicensed broker and ignoring the transaction tax: the mistakes we see repeated in property deals, and how buyers protect themselves.
1. Paying the deposit before the checks
The costliest mistake: the buyer pays a large deposit to "hold" the property, then discovers a mortgage, an objecting heir or a municipal violation, and is left with two bad options, completing a flawed deal or losing the deposit. The right order is checks first, then deposit, or a token deposit under a contract that expressly refunds it in full if the check reveals a material defect.
2. Relying on a picture of the deed
A deed image is not proof. Verification means the official Najiz enquiry with the deed number and owner ID, matching the name to the original ID, and then searching for mortgages and seizures. We set out the steps in How to verify a title deed.
3. Dealing with an unlicensed broker
Real estate brokerage is a licensed activity, and the broker must hold a FAL licence from the Real Estate General Authority. A licensed broker is bound by conduct and disclosure rules and can be complained against; an unlicensed one offers no recourse and is often the source of incomplete information about the property. Ask for the licence number and verify it, and fix the brokerage commission in writing before any negotiation.
4. Ignoring the transaction tax and fees
A property sale is subject to the 5% Real Estate Transaction Tax on the deal value unless an exemption applies, and the transaction is registered with ZATCA before transfer. The law places it on the seller by default, but many contracts shift it to the buyer implicitly or stay silent, and the dispute then stalls the transfer. Add white-land fees on undeveloped land, service charges and utility arrears, and state in the contract who bears each item.
5. A one-page sale contract
The short contracts circulating in agencies state the price, the deposit and two signatures. They say nothing about what happens if the seller is late releasing the mortgage, an heir refuses to sign, a violation surfaces, or the transfer is delayed. A good contract ties each payment to a step, sets out termination and compensation, provides that transfer occurs only once conditions are met, and documents the property's condition at handover.
6. Buying through a power of attorney without checking it
Much property fraud runs through powers of attorney: a revoked one, one issued by someone other than the owner, one that does not cover sale, transfer and receipt of the price, or one issued by a single heir on behalf of the others without authority. Verify the power of attorney on Najiz, read its powers literally, and confirm it is still valid on the very day of transfer.
7. Assuming off-plan is "guaranteed by the state"
The Wafi programme provides a strong protective framework, but it does not remove your own checks: the developer's licence for this specific project, payment into the escrow account rather than the developer's account, and the delay and termination terms in the contract. Details in Buying off-plan: your rights and guarantees.
The common thread across all seven mistakes is one: a major decision taken on incomplete information. Real estate due diligence costs a small fraction of the price and turns the deal from a gamble into a documented decision. For the full step-by-step guide see the buyer's guide.