Article 5 of the Saudi Real Estate Finance Law
المادة 5 من نظام التمويل العقاري
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
يجب على الجهات المنوط بها تسجيل الملكية العقارية (المحاكم وكتابات العدل) تمكين الممولين العقاريين (المرخص لهم) من الاطلاع والحصول على المعلومات المدرجة في سجلات العقار لديها، وفقًا لما تحدده اللائحة بالاتفاق مع وزارة العدل.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 5 explained in plain English
Before a bank or finance company finances the purchase of a property, it needs to verify its status in the official registers. This is why this article exists:
- The bound bodies: The bodies responsible for registering real estate ownership, which the text identifies as courts and notary offices.
- The duty: To allow real estate financiers to view the information entered in the real estate registers they hold, and to obtain it.
- Who benefits from the right: Only licensed real estate financiers, who under Article 1 are licensed commercial banks and finance companies.
- The details: As the Implementing Regulations specify in agreement with the Ministry of Justice.
The article does not open the registers to everyone, but only to licensed financiers, within the limits the Implementing Regulations set. The article does not specify the type of information or the method of viewing.
This article differs from Article 4, which speaks of publishing general data on real estate market activity in periodic bulletins by the Ministries of Commerce and Industry, Justice and Housing; here the subject is the real estate register information itself. After it comes Article 6, which allows financiers and refinancing companies to cover finance risks with cooperative insurance.
If you have questions about your property's data held by the financier, you can consult a lawyer specializing in banking and real estate finance.
Practical example
Khaled applied to a bank in Dammam for finance to buy land and build a home on it. As a licensed financier, the bank may view and obtain the information entered in the real estate register at the notary office, as the Implementing Regulations specify in agreement with the Ministry of Justice.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 5 of the Saudi Real Estate Finance Law
Can a bank view the real estate register?
Yes. The article requires courts and notary offices to allow licensed real estate financiers to view and obtain the information in real estate registers.
Is this right available to anyone?
The article gives it to licensed real estate financiers, as the Implementing Regulations specify in agreement with the Ministry of Justice.
More articles on Regulating the Real Estate Finance Sector
- Article 2
The 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.
تختص المؤسسة بتنظيم قطاع التمويل العقاري، بما في ذلك ما يأتي: 1 - السماح للبنوك بمزاولة التمويل العقاري بتملك المساكن لأجل تمويلها - استثناءً من حكم الفقرة (5)
- Article 3
The 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.
يزاول الممول العقاري أعمال التمويل العقاري بما لا يتعارض مع أحكام الشريعة الإسلامية؛ بناء على ما تقرره اللجان الشرعية المشار إليها في المادة (الثالثة) من نظام م
- Article 4
The 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.
تنشر وزارة التجارة والصناعة، ووزارة العدل، والوزارة - كل فيما يخصها - البيانات المتعلقة بنشاط السوق العقارية، وذلك في نشرات دورية وفقًا لاحتياجات السوق، وطبقًا
- Article 6
The 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.
للممولين العقاريين وشركات إعادة التمويل العقاري تغطية مخاطر التمويل العقاري بالتأمين التعاوني وفقًا لأحكام اللائحة.
- Article 14
The 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.
تعد المؤسسة اللائحة لهذا النظام، وتصدر بقرار من الوزير خلال (تسعين) يومًا من تاريخ صدوره، ويعمل بها بعد نفاذه.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.