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“Housing” plans to create a company to manage the white fee program. Banks are obliged to pay fees for mortgaged land

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Implementing the white land fee system in its first phase, Engineer “Mohammed Al-Madihim”, General Supervisor of the White Land Fees Program at the Ministry of Housing, explained that the Ministry will issue decisions to pay the fees due on landowners on the 13th of next Rabiul I, and that banks are obligated to register and pay for lands mortgaged in their name: 20.0pt; font-family: "Arial","sans-serif"; color: black;">.

In addition, the Ministry of Housing plans to establish an operational company to effectively manage the white land fee program by the end of this year 2016, where the application begins during the first phase in Riyadh, Jeddah and Dammam metropolis.

About the land mortgaged to banks in exchange for financial facilities, Al-Madihim explained that because there is no mortgage system except at the Real Estate Development Fund, fees are imposed on the entity in whose name the land is registered, and in the case of banks, they are obligated to register and pay, given that the mortgaged land is registered in their name, and that banks protect themselves from bearing the costs of fees through clauses stipulated in contracts with the original landowners.