Regulatory Alerts2020-06-08
Amendment of Paragraph 3 of the Mandatory Instructions When Offering Real Estate Finance Products for Individuals
The Saudi Central Bank (SAMA) issued and later amended instructions for banks and real estate finance companies, establishing minimum provisions for offering real estate financing products to individuals. These provisions require finance providers to assess client financial ability, explain product terms and risks clearly, and present a comprehensive offer valid for at least fifteen working days, including the contract, a detailed disclosure form, and a variable-rate risk acknowledgment. Furthermore, a dedicated credit advisor must provide additional explanations and answer inquiries, and a mandatory five-working-day waiting period must precede contract signing to ensure clients have ample time for review and external consultation.
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