Region

Jurisdiction

Regulator

2023-05-14

In-kind Real Estate Registration

The Saudi Central Bank issued this circular to require all financing entities operating in the Kingdom to adopt the title registration certificate from the General Authority for Real Estate as the approved ownership document for properties within the designated initial area of Al Falah District, Riyadh. This mandate operationalizes the In-kind Real Estate Registration System by compelling financing entities to rely exclusively on the General Authority's registration certificates for ownership claims in the specified zone. Financing entities bear the ongoing responsibility of continuously monitoring General Authority announcements to ensure strict compliance with the updated real estate register mechanism.

Saudi Arabia

Saudi Central Bank

Saudi Central Bank

Reference No.: 44081439 Date: 1444/10/24 Attachments: None

Circular

To the Esteemed, Peace, mercy, and blessings of God be upon you.

Subject: Regarding In-kind Real Estate Registration

With reference to the letter received from His Excellency the Minister of Municipal and Rural Affairs and Housing, Chairman of the Board of Directors of the General Authority for Real Estate, No. (244382) dated 1444/09/19H, and referring to the In-kind Real Estate Registration System issued by Royal Decree No. (M/91) dated 1443/09/19H, and what Article Seven, Paragraph (1) of the System stipulates: "The real estate area shall be determined by a decision issued by the competent authority, provided that the decision includes an accurate and clearly defined description of the area and the specified period for receiving initial in-kind registration applications, and shall be announced by any suitable means specified by the decision," and what Article Nine, Paragraph (3) of the Executive Regulations of the same System stipulates: "The decision determining the real estate area shall be notified to all relevant parties for initial in-kind registration immediately upon its issuance."

And since His Excellency's letter included the announcement by the General Authority for Real Estate that the (Al Falah District) area in Riyadh City is the first to benefit from the "Real Estate Register" under its updated mechanism; financing entities holding rights related to the aforementioned area are required to adopt the title registration certificate issued by the General Authority for Real Estate as the approved document for ownership in that area.

For information and necessary action, please note that financing entities bear the responsibility of continuously monitoring announcements issued by the General Authority for Real Estate regarding this matter.

Yours sincerely,

Yazed bin Ahmed Al Sheikh Deputy Governor for Supervision

Distribution Scope:

Banks and financial institutions operating in the Kingdom.
Financing companies operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 4633000