Extension of Deadline for Correction of Real Estate Mortgages

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters

Office of the Deputy Governor for Supervision

Reference No.: ............................................................
Attachments: ..........................................................

Reference No.: 32515/99
Date: 1442/03/12
Attachments: None

Circular

To the Esteemed,

Peace, mercy, and blessings of Allah be upon you, Subject: Extension of the Deadline for Correction of Real Estate Mortgages.

Reference is made to Paragraph (Second) of the Bank's Instructions communicated via Circular No. 381000089828 dated 1438/08/26H, regarding the obligation of financing entities to correct and authenticate real estate mortgages in accordance with the actual contract terms within a period not exceeding (3) years, and Circular No. 391000070461 dated 1439/06/19H regarding the timeline for correcting properties registered under financing entities' names. Reference is also made to the approval of His Excellency the Governor for extending the deadline for correcting and authenticating real estate mortgages by financing entities until 1442/8/26H.

Accordingly, the Bank confirms to all financing entities that they must complete the correction and authentication of real estate mortgages in accordance with their contractual terms before the end of the specified period on 1442/8/26H, through the available correction channels.

For information and necessary action, please note that the Bank will take the required regulatory measures in case of non-compliance with this deadline.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.
• Financing companies operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Phone: +966 4662020, Fax: +966 4662488