In a move aimed at enhancing transparency and improving the efficiency of the liquidation sector, the Enforcement and Liquidation Center (Enfaz) the new Appraiser's Guide through the "Istilaa" platform. This step aims to establish strict professional governance rules that regulate the valuation and surveying procedures for assets entrusted to the center, thus guaranteeing the rights of all stakeholders.
A regulatory framework to enhance confidence in liquidation
This measure is part of the ongoing efforts of the Enforcement Center – an independent government agency – to expedite the fulfillment of rights and promote the values of justice and transparency in auctions and sales transactions. These controls are of paramount importance given the pivotal role of accurate valuation in determining the fair value of assets, whether real estate or movable property. This positively impacts the speed of liquidation proceedings and reduces potential litigation, aligning with the goals of the Kingdom's Vision 2030 to develop the judicial and economic environment.
precise legal and professional obligations
Through this binding guide, the center seeks to define the legal obligations of assessors with utmost precision. Article 2 of the guide affirms that its provisions apply to all tasks assigned by the center, establishing it as a legal reference that cannot be deviated from or exceeded at any stage of the work, from beginning to end. The guide clarifies that the assessor performs their duties as an individual tasked with carrying out specific work in their own name, thus precluding any interpretation that would make them an authorized representative or official agent of the center before third parties or impose any financial obligations upon them.
Restricting powers and prohibiting conflicts of interest
The new regulations strictly restrict the resident's authority to the scope of their assigned task, requiring them to immediately cease work and return to the center if any ambiguity or confusion arises in the data provided. Regarding independence, the guidelines mandate the immediate written disclosure of any potential conflict of interest, considering the concealment of any personal connection to the assignment a serious violation warranting termination of assignment without compensation, thus ensuring the report's impartiality and integrity.
The guidelines also prohibit the inclusion in valuation reports of any estimates not supported by technical justification, or the issuance of results that contradict the standards of the Saudi Authority for Accredited Valuers, holding the valuer solely responsible for any professional misconduct. All work of valuers is subject to close oversight by the Enforcement Authority, which has the power to take legal action, hold accountable, and impose penalties in cases of negligence or intentional misconduct that harms the interests of assets.
Field procedures and financial controls
The guidelines require appraisers to begin implementation immediately upon notification and review of ownership documents. They prohibit commencing on-site inspections before fulfilling all regulatory requirements or delegating tasks to a third party without prior approval. The guidelines also mandate a preliminary study to assess the asset's readiness for appraisal, including verification of deeds, geographical coordinates, and identification of any legal impediments such as wills or disputes that might hinder the sale. Furthermore, the guidelines require the documentation of on-site inspections with recent photographs and precise coordinates.
On the financial side, the center has established strict controls to prevent it from incurring any additional costs or travel expenses outside the urban area without prior approval and a detailed price quote. Regarding communication, the guidelines prohibit the use of undocumented methods or direct contact with external parties, requiring residents to cooperate technically by responding to inquiries from judicial and governmental authorities exclusively through the center's official channels.
Expected impact on the real estate market
These new standards are expected to improve the quality of appraisals and maximize asset valuation, thereby supporting fair and technically sound decisions regarding the liquidation of joint funds and estates. Furthermore, requiring appraisers to adhere to international valuation standards and retain documents for a minimum of three years enhances the historical reliability of property data and protects the rights of both heirs and creditors.
