Riyadh—SPA

The Ministry of Justice has approved the supplementary financing program in its new form, as the Ministry deemed it appropriate to apply the mortgage system to these cases to align with the realities of society and to guarantee the rights of all parties (citizens, commercial banks, and the Real Estate Development Fund).
Fahd Al-Bakran, the official spokesperson for the Ministry of Justice, explained that the approval included utilizing the mortgage system such that the property is registered in the name of the citizen—the “beneficiary”—as the owner, and then the property is mortgaged in favor of the Real Estate Development Fund and the commercial bank to secure the loan provided by them.
He confirmed that the Ministry has begun implementing the procedure for documenting the transfer of ownership from the seller to the citizen “beneficiary,” while simultaneously mortgaging the property in favor of the bank and the Real Estate Development Fund, through a single, integrated process, with this procedure recorded in its computerized system at the notary offices, As for notary offices that do not use the comprehensive system, they carry out the procedure in an open-record format. He explained that all properties subject to the supplementary financing program from a local bank must have all deeds for those properties registered in the names of their citizen owners, noting that the Fund or the bank may obtain a copy of the deed if they so desire.
It is worth noting that the supplementary financing program was approved through an agreement between the Ministry of Justice, the Real Estate Development Fund, and the commercial banks that signed the program.