Transferring of Mortgage Debts
| No: 391000028242 | Date(g): 28/11/2017 | Date(h): 10/3/1439 |
Effective from 2017-11-28 - Nov 27 2017
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Based on Article 2 of the Real Estate Finance Law issued by Royal Decree No. (M/50) dated 13/08/1433 Hijri. The entity authorized the central bank to regulate the mortgage sector, including the issuance of standards and procedures related to mortgage financing, and additionally To the circular number 391000000353 dated 01/01/1439 Hijri. Regarding individual variable-cost mortgage products.
Based on the role of the central bank 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 mortgage debt (attached) within seven business days of receiving the request from the client. It should complete all the necessary information while adhering to the prepayment standards mentioned in the ... Article 84 of the Executive Regulations for the Financing Companies Control System issued by the decision of His Excellency the Governor No. 2/T.S.M dated 14/04/1434H. The organization of the accelerated payment process, with the necessity of notifying the client immediately upon issuing the debt transfer document, provided that the offer period mentioned in the form is not less than ten working days." |
| Secondly: | After the funding entity (wishing to purchase the debt) receives the debt transfer form, it commits to the following: |
| Sure, here is the translated text in English: • Granting credit equivalent to (100%) of the offer value mentioned in the form. | |
| • Obtain a written acknowledgment from the client that includes all obligations that may fall upon them, such as, but not limited to, (property safety, assessment fees, property guarantee, etc.). | |
| Thirdly: | Sure, here is the translated text: "When the financing entity (seeking to purchase the debt) approves and the requirements are completed, a bank check 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 receipt of the debt transfer form." |
| Fourth: | The financing entity (the debt seller) must, after receiving the form and the bank check, commit to the following: |
| Sure, here is the translation: • 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? |