Regulatory Alerts2020-10-27
Extension of Deadline for Correction of Real Estate Mortgages
The Saudi Central Bank extends the compliance deadline for all domestic banks and financing companies to correct and authenticate real estate mortgages in accordance with actual contract terms until 1442/08/26H. This directive mandates that entities utilize available correction channels to finalize the process, aligning with prior instructions and approved timelines. The Bank will enforce regulatory measures against any financing entities that fail to meet the extended deadline.
In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters
Office of the Deputy Governor for Supervision
Reference No.: ............................................................ Attachments: ..........................................................
Reference No.: 32515/99 Date: 1442/03/12 Attachments: None
Circular
To the Esteemed,
Peace, mercy, and blessings of Allah be upon you, Subject: Extension of the Deadline for Correction of Real Estate Mortgages.
Reference is made to Paragraph (Second) of the Bank's Instructions communicated via Circular No. 381000089828 dated 1438/08/26H, regarding the obligation of financing entities to correct and authenticate real estate mortgages in accordance with the actual contract terms within a period not exceeding (3) years, and Circular No. 391000070461 dated 1439/06/19H regarding the timeline for correcting properties registered under financing entities' names. Reference is also made to the approval of His Excellency the Governor for extending the deadline for correcting and authenticating real estate mortgages by financing entities until 1442/8/26H.
Accordingly, the Bank confirms to all financing entities that they must complete the correction and authentication of real estate mortgages in accordance with their contractual terms before the end of the specified period on 1442/8/26H, through the available correction channels.
For information and necessary action, please note that the Bank will take the required regulatory measures in case of non-compliance with this deadline.
Yours sincerely,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom.
- Financing companies operating in the Kingdom.
P.O. Box 2992, Riyadh 11169, Phone: +966 4662020, Fax: +966 4662488