Centre for Business Law and Practice PGR Seminar: Revision of the definition of affordable housing in Article (12) of the Real Estate Mortgage Law

The first of our regular PGR seminars.

This seminar will answer the following question: to what extent does article (12) of the Real Estate Mortgage Law (REML) comply with the definition of affordable housing? First, it will shed light on the housing shortage in Saudi which was caused by a number of factors, some of which are considered legal in nature. Also, it will explain how this deficit in housing has created the incentive to enact four laws in order to resolve it.

Secondly, it will show that article (12) of the REML has obliged borrowers to pay 30% of the total housing cost while lenders will finance the remaining 70%, and will give examples to clarify this article. Thirdly, it will consider the impact of this article on the principle of affordable housing by giving some figures to demonstrate that the article is not commensurate with that principle.

Finally, it will draw some conclusions as to how article (12) can be made compliant with the term ‘affordable housing’.