Implementation of the Saudi Mortgage Law Developing an Effective Research Paper - 3

Implementation of the Saudi Mortgage Law Developing an Effective Mortgage - Research Paper Example The provisions of Saudi Arabia ‘real estate mortgage law’, which was signed into law on July 2, 2012, offer different ways through which the law will be implemented. First, under the ‘Enforcement’ Law, the law has provided that judges should hear and enforce mortgage disputes and insolvency actions (Delloite, 2). In this respect, the law has allowed the courts to decide on the order of the repayment of the mortgages, in a way that would guarantee swift repayments. Under the ‘Real Estate Finance’ Law of the Saudi Mortgage Laws, an elaborate architecture and framework for the authorization and licensing of banks and other non-banking companies to offer mortgage facilities has been established. Thus, according to this section of the law, banks will be allowed to own real estate’s for the purpose of facilitating mortgage lending (Khan, 2). Additionally, the government will facilitate the banks and companies offering the mortgage services, through publicizing real estate market activities, while at the same time granting the companies and the banks an access to the notary registers and the courts (Delloite, 2). This s ection of the law has also provided that a credit risk must be undertaken on the borrowers, through the aid of the authorized and available credit bureaus, to ensure the creditworthiness of all borrowers. Further, the Saudi Mortgage Law includes a section under the ‘Registered Real Estate Mortgage’ Law, which provides for the procedures of the registration of mortgages (Khan, 7).