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Emphasizing the Obligations of the Real Estate Financier When Transferring Rights to Third Parties in the Secondary Market and When Assigning Collection Tasks to a Third Party

No: 43076847 Date(g): 4/4/2022 | Date(h): 3/9/1443 Status: In-Force

Translated Document

Based on the powers vested in SAMA under the relevant regulations, and in line with its supervisory and regulatory role over real estate financiers, and pursuant to the provisions of the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/8/1433H and its Implementing Regulations.

SAMA confirms that refinancing through licensed real estate refinancing companies is limited to the trading of real estate finance contract rights in the secondary market, as outlined in the Real Estate Finance Law and its Implementing regulations. The real estate financier (the originator of the real estate finance contract) remains responsible for fulfilling its obligations as stipulated in the relevant regulations, contracts, and instructions when transferring its rights. The financier must continue to meet these obligations throughout the contract's term. These obligations include, but are not limited to:

  1. Immediate updating of any changes in customer credit records, with a minimum update period as specified in the Implementing regulations of Credit Information Law.
  2. Handling early repayment and debt restructuring for customers in accordance with the relevant instructions.

Accordingly, the real estate financier is obligated to comply with this requirement, while enabling the third party assigned the collection tasks to carry out its duties (in accordance with the relevant regulations and instructions). SAMA will take legal action if any violations of its instructions are identified.