Transfer of The Real Estate Financing Debts

In the Name of Allah, the Most Gracious, the Most Merciful

General Authority of Real Estate Financing
Under the Premiership of the Prime Minister

Customer Protection Department
Number: / C H /
Attachments: \
(Circular)

To Whom It May Concern,

Peace, mercy, and blessings of Allah be upon you.

Subject: Transfer of Real Estate Financing Debts.

Based on Article Two of the Real Estate Financing System issued by Royal Decree No. (M/5) dated 13/08/1433H, which authorized the Authority to regulate the real estate financing sector, including issuing standards and procedures related to real estate financing, and in continuation of the Authority's Circular No. 391………353 dated 1/0/1439H regarding variable cost real estate financing products for individuals.

And starting from the Authority's role in protecting the rights of customers of financial institutions under its supervision, and the importance of regulating the transfer of debts of customers who meet the conditions of the aforementioned circular, the following must be adhered to:

First: The financing entity (seller of the debt) must assign the specific form for the transfer of real estate financing debt (attached) within seven working days of receiving the request from the customer, and complete all necessary data therein, while adhering to the standards of accelerating repayment stipulated in Article Eighty-Four of the Executive Regulations of the System for Monitoring Financing Companies issued by the Ministerial Decision of the Minister of Finance No. 2/M/Sh/T dated 14/04/1434H, which organizes the process of accelerating repayment, with the necessity of notifying the customer immediately upon issuing the debt transfer document, provided that the offer period mentioned in the form is not less than ten working days.

Second: After receiving the financing entity (wishing to purchase the debt) the debt transfer form, it must comply with the following:

• Blocking credit equivalent to (100%) of the value of the offer mentioned in the form.
• Obtaining a written acknowledgment from the customer containing all obligations falling upon him, if any, by way of example, not limitation (integrity of the property, evaluation fees, property guarantee, etc.).

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In the Name of Allah, the Most Gracious, the Most Merciful

General Authority of Real Estate Financing
Under the Premiership of the Prime Minister

Customer Protection Department
Date:
Corresponding to:
Number: / C H /
Attachments:

Third: Upon the approval of the financing entity (wishing to purchase the debt) and completion of requirements, a bank check for the amount of the debt is issued and the form is returned to the financing entity (seller of the debt) to complete the ownership transfer process within a period not exceeding seven working days from the date of receiving the debt transfer form.

Fourth: The financing entity (seller of the debt) must, upon receiving the form and the bank check, comply with the following:

• Begin the procedures for transferring the ownership of the property to the financing entity (buyer of the debt) from the date of receiving the bank check.
• Update the customer's credit record and issue a clearance letter to the customer.

Fifth: Without prejudice to the above, the financing entity (wishing to purchase the debt) must comply with what is stipulated in Article Ten of the Executive Regulations of the Real Estate Financing System issued by the Ministerial Decision of the Minister of Finance No. 129 dated 10/04/1434H.

For information and action from its date.

And accept my greetings and appreciation,

[Signature]
Ahmed bin Abdullah Al Sheikh
Deputy Minister of Finance for Supervision

Distribution Scope:

• General Directorate for Supervision of Financing Companies
• General Directorate for Supervision of Banks
• All banks and financing companies operating in the Kingdom
• Center of Excellence

P.O. Box 2992 Riyadh 11179 Phone 4677704 - 4677705 - Fax 4677747 - 4677748