Regulatory Alerts2020-10-20
Real Estate Financing Contracts Concluded Between Real Estate Financiers on Behalf or by Proxy of Others and Individual Customers Are Subject to Financing Regulations and Instructions Issued by the Organization
The Saudi Central Bank requires all real estate financiers to ensure that individual financing contracts—whether concluded directly, by proxy, or on behalf of third parties—strictly comply with the Organization’s financing regulations, executive bylaws, and approved instructions. Financiers must verify this compliance before concluding new contracts and rectify their agreements with other parties to align with these regulatory requirements. This directive explicitly applies even when the credit granting decision originates from a third party rather than the financier itself.
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