Skip to main content
Custom print

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

Effective from 2017-05-22 - May 21 2017
To view other versions open the versions tab on the right

Based on the powers granted to the Central Bank under the Central Bank Law issued by Royal Decree No. (23) dated 23/05/1377 AH, and the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386 AH, and the Financing Companies Control Law issued by Royal Decree No. (M/51) dated 13/08/1433 AH, and referring to the Registered Mortgage Law issued by Royal Decree No. (M/49) dated 13/08/1433 AH.

The Central Bank emphasizes that banks, financial institutions, and financing companies must adhere to the following:

First: Document mortgages according to the actual contract, and cease any actions related to transferring ownership of the property instead of mortgaging it.

Second: Correct the status of properties currently registered in the name of the bank or financial institution within a period not exceeding three (3) years, and inform clients accordingly.

Third: Provide the Central Bank with cases proving that notaries are refusing to register the mortgage for the benefit of the bank or financing companies.