Regulatory Alerts2016-03-08
Obligations of Real Estate Appraisal Customers Under SAMA Supervision
The Saudi Central Bank (SAMA) issued this circular to mandate strict compliance standards for banks, financing companies, and insurance companies regarding their engagement with real estate appraisers. The directive requires financial institutions to implement robust governance mechanisms that ensure appraiser independence, prohibit any coercion or undue influence on valuation outcomes, and establish clear internal policies for appraiser selection and fee structures. Additionally, regulated entities must promptly report any appraiser misconduct or regulatory violations to the Saudi Society of Accredited Appraisers within 30 days and bear full responsibility for verifying property ownership and structural integrity.
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