In force
Saudi Real Estate Finance Law
نظام التمويل العقاري
The Real Estate Finance Law defines its terms and covers supervision and licensing, government support, the secondary real estate finance market, and competences.
- Articles
- 15
- In force
- 15
- Amended
- 0
- Issued
- 13/8/1433 AH
Issued by: مرسوم ملكي رقم م / 50 بتاريخ 13 / 8 / 1433
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
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Articles of the Saudi Real Estate Finance Law
- Article 1The article defines the key terms of the Real Estate Finance Law, including the real estate finance contract, the beneficiary, the real estate financier, the subsidy-eligible person and the primary and secondary markets.
- Article 2The article makes the Agency responsible for regulating the real estate finance sector and lists its powers, from licensing financiers to reviewing contracts and setting cost disclosure principles.
- Article 3The article requires the real estate financier to engage in finance in a way that does not conflict with the provisions of Islamic Sharia, as determined by the Sharia committees, and without harming the soundness of the financial system or fairness in dealings.
- Article 4The article requires the Ministry of Commerce and Industry, the Ministry of Justice and the Ministry of Housing, each within its remit, to publish real estate market activity data in periodic bulletins.
- Article 5The article requires courts and notary offices to allow licensed real estate financiers to view and obtain the information in real estate registers, as the Implementing Regulations specify.
- Article 6The article allows real estate financiers and real estate refinancing companies to cover real estate finance risks through cooperative insurance, in accordance with the Implementing Regulations.
- Article 7The article requires the beneficiary to have a credit record with a licensed service provider, and the beneficiary's credit behavior data to be entered in it throughout the finance term.
- Article 8The Real Estate Development Fund allocates part of its approved budget as guarantees and aid to support real estate finance for subsidy-eligible persons and housing associations, as the Implementing Regulations regulate.
- Article 9The government guarantees fulfillment of the financial obligations arising from the Real Estate Development Fund's guarantees supporting real estate finance, within what is approved for them in the Fund's budget.
- Article 10The article allows the Council of Ministers, on the proposal of the Minister of Finance, to grant tax incentives for investment in real estate securities.
- Article 11The article allows real estate financiers to refinance through real estate refinancing companies or securities, without prejudice to the Sharia compliance in Article 3.
- Article 12The article exempts mortgage transfer procedures in the real estate finance secondary market from registration fees under the Real Estate Registration Law.
- Article 13The competent court decides disputes over real estate finance contracts, and imposes the penalty in the Finance Companies Control Law on anyone proven to have delayed paying their debt.
- Article 14The Agency prepares the law's Implementing Regulations, which are issued by decision of the Minister of Finance within 90 days of the law's issuance and take effect after the law comes into force.
- Article 15The Real Estate Finance Law takes effect 90 days after the date of its publication in the Official Gazette.