Transferring of Mortgage Debts
| No: 391000028242 | Date(g): 28/11/2017 | Date(h): 10/3/1439 |
Effective from 2017-11-28 - Nov 27 2017
To view other versions open the versions tab on the right
Based on Article 2 of the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/08/1433H. which authorizes SAMA to regulate the real estate finance sector, including the issuance of standards and procedures related to real estate financing, further to the circular No. 391000000353 dated 01/01/1439H. Regarding Variable-Cost Real Estate Finance Products for Individuals.
Based on the role of SAMA in protecting the rights of customers of financial institutions under its supervision, and due to the importance of regulating the transfer of customers' debts who meet the conditions of the above circular, it is necessary to adhere to the following:
| Firstly: | The financing entity (debt seller) must fill out the form for transferring real estate debt (attached) within seven working days of receiving the request from the client. It should complete all the necessary information while adhering to the accelerate the payment standards mentioned in Article 84 of the Implementing Regulation of the Finance Companies Control Law issued by the decision of His Excellency the Governor No. 2/MFC dated 14/04/1434H. which regulates the accelerated payment process, with the necessity of notifying the client immediately upon issuing the debt transfer document, provided that the offer period specified in the form is not less than ten working days." |
| Secondly: | After the financing entity (wishing to purchase the debt) receives the debt transfer form, it commits to the following: |
| Grant credit equivalent to(100%) of the value of the offer specified in the form. | |
| • Obtain a written acknowledgment from the client that includes all obligations, if any, such as, but not limited to, (property safety, appraisal fees, property guarantee, etc.). | |
| Thirdly: | Upon the approval of the financing entity (willing to purchase the debt) and completion of the requirements, a cheque in the amount of the debt is issued and the form is returned to the financing entity (the debt seller) 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 (the debt seller) must, after receiving the form and the bank cheque, commit to the following: |
| Initiating the process of transferring the property ownership to the financing party (the debt buyer) from the date of receiving the bank check. | |
| The translation of the text to English is: - Updating the customer's credit record and issuing a clearance letter for the customer. | |
| Fifthly: | Taking into account the aforementioned points, the financing entity (wishing to purchase the debt) commits to the following provisions. Article Ten of the Executive Regulations of the Real Estate Finance System, issued by the decision of His Excellency the Minister of Finance No. 1229 dated 1434/04/10 AH.It seems like your message only contains a period. Could you please provide the text you would like translated? |