Regulatory Alerts2016-01-01
Decision of the Chairman of the Authority No. (975) for the Year 2016
The Financial Regulatory Authority issued Decision No. (975) of 2016 to standardize the real estate financing agreement under the Ijarah (lease-to-own) system in compliance with Real Estate Financing Law No. 148 of 2001 as amended. The document mandates a unified contractual framework that explicitly defines the rights and obligations of both the financier (lessor) and the investor (lessee), covering unit valuation, ownership verification, rental value structures, early repayment mechanisms, and assignment of lease rights. It further establishes strict compliance requirements regarding transparency of financing costs, insurance obligations, guarantee enforcement procedures, and dispute resolution through specialized economic courts or arbitration.