Article 12 of the Saudi Real Estate Finance Law

When the financier's rights are traded in the secondary market, which under Article 1 is trading in the financier's rights arising from primary market contracts, the mortgage securing the finance may pass from one party to another. These procedures normally require registration.

This article provides:

• What is exempted: Mortgage transfer procedures.
• The scope: In the real estate finance secondary market specifically.
• The type of exemption: From registration fees under the Real Estate Registration Law.

The exemption is specific: it does not cover all mortgage procedures but mortgage transfer in the secondary market, and it does not cover all fees but registration fees under the Real Estate Registration Law. The apparent purpose is to reduce the cost of trading finance rights.

This article comes after Article 11, which allows real estate financiers to refinance through real estate refinancing companies or through securities under the Capital Market Law, without prejudice to Article 3. After it comes Article 13, under which the competent court decides disputes over real estate finance contracts.

This article concerns financiers and refinancing bodies mainly. If you have questions about a mortgage transferring on your property, you can consult a lawyer specializing in banking and real estate finance.