Register Mortgages in Accordance with the Fact of the Contract
| No: 381000089828 | Date(g): 22/5/2017 | Date(h): 26/8/1438 | Status: In-Force |
Translated Document
Effective from 2017-05-22 - May 21 2017
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Based on the powers vested to SAMA under Saudi Arabian Monetary Authority Law issued by Royal Decree No. (23) dated 23/05/1377 H, and the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386 H, and the Finance Companies Control Law issued by Royal Decree No. (M/51) dated 13/08/1433 H, and referring to the Registered Real Estate Mortgage Law issued by Royal Decree No. (M/49) dated 13/08/1433 H.
SAMA emphasizes that banks and finance companies must adhere to the following:
First: Document mortgages according to the actual contract, and cease any procedures related to transferring ownership of the property instead of mortgaging it.
Second: Correct the status of real estate currently registered in the name of the bank or finance company within a period not exceeding three (3) years, and inform customers accordingly.
Third: Provide SAMA with cases proving the refusal of notaries to register the mortgage for the benefit of the bank or finance companies.