Financing Amount to the Value of the First Home of Customers whose Properties are Covered within the Scope of Expropriation
| No: 000046015216 | Date(g): 9/9/2024 | Date(h): 6/3/1446 | Status: In-Force |
Translated Document
In reference to Article (Eleven) of the Implementing Regulation of the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/08/1433 H, which stipulates that "The real estate finance entity shall not extend credit on any form of finance exceeding 70 percent of the value of the dwelling subject of the real estate finance contract. SAMA may change such percentage according to prevailing market conditions", and the subsequent circulars issued by SAMA in this regard, and referring to the state's decisions to expropriate some real estate for the public benefit.
We would like to inform that real estate finance entities may grant real estate financing to beneficiaries whose properties have been subjected to expropriation decisions in accordance with to the percentages specified by SAMA for the first home. Before granting the financing amount, real estate finance entities must verify that the beneficiaries are entitled to their properties to be within the scope of expropriation and are considered the first home. While emphasizing compliance with all relevant laws, instructions and regulations issued by SAMA and other regulatory authorities.