Article 13 of the Saudi Real Estate Finance Law

This article identifies the body that decides disputes relating to real estate finance contracts, and gives it another power:

1. Deciding disputes: The competent court decides the disputes arising from real estate finance contracts. The article does not name this court; the reference for identifying it is the rules of judicial jurisdiction.
2. Imposing the penalty on delay: The competent court also imposes the penalty provided for in paragraph 1 of Article 35 of the Finance Companies Control Law on anyone proven to have delayed paying their debt.

Note two conditions for the penalty: there must be delay in paying the debt, and this delay must be proven. The type and amount of the penalty are stated in the Finance Companies Control Law, not in this law, so they cannot be determined from this article.

A real estate finance contract, under Article 1, is a deferred-payment contract for the beneficiary to own a home, so the disputes intended are those arising from this contract, whether brought by the beneficiary or the financier. This article comes after Article 12 on exempting mortgage transfer in the secondary market from registration fees, and is followed by Article 14 on preparing the Implementing Regulations.

If a dispute arises between you and the financier, or a claim is made against you because of late payment, it is advisable to consult a lawyer specializing in banking and real estate finance.