Regulatory Alerts2017-05-22
Register Mortgages in Accordance with the Fact of the Contract
The Saudi Central Bank issued a circular requiring all licensed banks and finance companies in the Kingdom to document real estate mortgages strictly in accordance with the true nature of the underlying contract, prohibiting the practice of transferring property ownership instead. Institutions must rectify any existing properties incorrectly registered under their names within three years and proactively inform affected customers. Furthermore, they are mandated to report any cases where notaries public refuse to register mortgages in the institution's favor to the Authority for regulatory oversight.
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