Enforcement imposes new controls on residents and restricts financial powers
In a move aimed at enhancing transparency and improving the efficiency of liquidation processes, the Enforcement and Liquidation Center (Enfaz) launched the new Appraiser's Guide via the "Istilaa" platform. This step complements the regulatory efforts led by the center to establish professional governance standards in the valuation and surveying procedures for assigned assets, ensuring the rights of all stakeholders.
A regulatory framework to promote effective justice
The Enforcement and Liquidation Center (Enfaz) is a cornerstone of the justice and economic system in the Kingdom of Saudi Arabia. It was established to expedite the fulfillment of rights and enhance beneficiary satisfaction by overseeing the liquidation of assets (estates, shares, debts) assigned to it by judicial authorities. These new regulations are particularly important because real estate or commercial valuation is the cornerstone of determining the fair value of assets, which directly impacts the speed of reintegrating funds into the economic cycle and safeguarding the rights of heirs and creditors.
Clear definition of responsibilities and authorities
The new guidelines confirm that the assessor performs their duties as a technically authorized representative tasked with specific work, thus preventing any interpretations that might fall outside this scope. Article 2 clearly states that the guidelines constitute a legally binding reference, clarifying that the assessor does not have the status of an official agent or representative of the center before third parties, nor is they entitled to arrange any financial or contractual obligations on behalf of the center. This strengthens procedural governance and clearly separates the technical and administrative aspects.
Strict standards of integrity and independence
In its commitment to quality, the Enfaz Authority stressed the need for appraisers to adhere to the standards of the Saudi Authority for Accredited Appraisers, prohibiting the inclusion of any arbitrary valuations in reports that are not supported by technical justification. The guide also placed great emphasis on the issue of conflict of interest, mandating the immediate and written disclosure of any relationship that may link the appraiser to the asset or other relevant parties, considering the concealment of this information a serious violation warranting the cancellation of the assignment and legal accountability.
Field procedures and strict financial controls
The guide did not overlook procedural aspects, requiring assessors to conduct preliminary studies that include verifying deeds and geographical coordinates and identifying any legal or technical obstacles before commencing the evaluation. It also mandated documenting the on-site inspection with recent photographs and detailed reports on the building's condition.
On the financial and administrative front, the center imposed strict restrictions preventing residents from communicating directly with external or judicial entities except through the center's official channels. It also prohibited the center from incurring any additional costs or travel expenses outside the urban area without prior approval and a detailed price quote, in order to control financial waste and ensure efficient spending in the liquidation process.
These controls represent a qualitative shift in the mechanism of the evaluators’ work, as they ensure the confidentiality of information and the preservation of documents for a period of no less than three years, which enhances the reliability of the center’s work locally and regionally as a leading model in asset liquidation.
