Enforcement introduces a guide for residents' businesses: new regulations and a ban on external communication
In a move aimed at strengthening governance in the liquidation and assignment sector in Saudi Arabia, the Liquidation and Assignment Center (Enfaz) a new guide for appraisers through the National Competitiveness Center's "Istilaa" platform. This draft guide aims to establish rigorous professional standards governing the valuation and surveying procedures for assigned assets, thereby safeguarding the rights of all stakeholders in the liquidation process.
Regulatory context to enhance transparency
This step complements the vital role played by the Enforcement Center as an administratively and financially independent government body. It strives to expedite the fulfillment of rights and enhance beneficiary satisfaction by overseeing the liquidation of assets (real estate and movable property) entrusted to it by judicial authorities or the private sector. Regulating the relationship with service providers, particularly accredited appraisers, is a cornerstone for ensuring the fairness of asset market value. This directly benefits the national economy and strengthens confidence in the Kingdom's business environment, aligning with the goals of Vision 2030 to improve the efficiency of the judicial and economic systems.
Limits of liability and legal representation
The new guidelines unequivocally affirm that the appraiser performs their duties as an individual commissioned to carry out specific artistic work in their own name, denying any agency or official representative status on behalf of the center. Article Two emphasizes that these guidelines constitute a legally binding reference that cannot be deviated from, as all appraisers' work is subject to close monitoring by the Enforcement Authority. The center possesses full authority to hold appraisers accountable and apply statutory penalties in the event of any negligence or transgression that harms the interests of the assets, thus ensuring that professional status is not exploited to impose unauthorized financial or legal obligations on the center.
Technical standards and independence controls
The guide requires appraisers to fully comply with the standards of the Saudi Authority for Accredited Appraisers (Taqeem) and prohibits the inclusion of any arbitrary valuations in reports that are not supported by strong technical justifications. To enhance integrity, the guide mandates the immediate written disclosure of any potential conflict of interest, considering the concealment of any personal relationship with the asset or parties to the dispute a serious violation that warrants immediate cancellation of the assignment without compensation. This reflects the center's commitment to the impartiality of the appraisal outcomes.
Field procedures and financial constraints
On a procedural level, the guide lays out a clear roadmap beginning with a preliminary study to verify the documents and geographical coordinates and identify any legal impediments. It also mandates the documentation of field inspections with recent photographs and precise coordinates. Regarding financial matters, the center has established strict restrictions preventing it from incurring any additional costs or travel expenses outside the urban area without prior approval and a detailed price quote.
The guide concluded with firm security and administrative directives, prohibiting residents from direct contact with external parties or using undocumented means, obligating them to cooperate technically in responding to inquiries from judicial authorities exclusively through the center’s official channels, while emphasizing the confidentiality of information and the preservation of documents for a period of no less than three years.
