Accredited Valuers Law

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  • Royal Decree No. M/43 dated 9/7/1433 AH

  •  

  • By the grace of Allah Almighty

  • We, Abdullah bin Abdulaziz Al Saud

  • King of the Kingdom of Saudi Arabia

  • Pursuant to Article (Seventy) of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH.

  • Pursuant to Article (Twenty) of the Council of Ministers Law, issued by Royal Order No. (A/13) dated 3/3/1414 AH.

  • Pursuant to the amended Articles (Seventeen) and (Eighteen) of the Shura Council Law, issued by Royal Order No. (A/91) dated 27/8/1412 AH.

  • After reviewing the Shura Council Resolutions No. (25/17) dated 6/5/1429 AH, and No. (7/3) dated 14/3/1431 AH.

  • After reviewing the Council of Ministers Resolution No. (217) dated 7/7/1433 AH.

  • We have decreed the following:

    • First: Approval of the Accredited Valuers Law, in the attached form.

    • Second:

      • 1- By way of exception to the provisions of paragraph (1) of Article (Twenty-Seven) of the Accredited Valuers Law, the Saudi Authority for Accredited Valuers shall be managed during the first three years from the effective date of this law by a Board of Directors formed as follows:

        • A- Minister of Commerce and Industry as Chairman.

        • B- A representative from the Ministry of Municipal and Rural Affairs as a member.

        • C- A representative from the Ministry of Justice as a member.

        • D- A representative from the Ministry of Finance as a member.

        • The ranks of the ministry representatives shall not be less than the fourteenth rank or its equivalent.

        • E- A faculty member in a department related to valuation from one of the Kingdom’s universities, appointed by the Minister of Higher Education.

        • F- A representative from the Council of Saudi Chambers of Commerce and Industry, appointed by the Council.

        • G- Six members from practicing valuers appointed by the Minister of Commerce and Industry.

      • 2- By way of exception to the provisions of Article (Forty-Five) of the Accredited Valuers Law, all provisions related to the competencies of the Board of Directors – as stated in the law – shall be effective from the date of issuance of this decree.

    • Third: It is incumbent upon His Highness the Deputy Prime Minister, the Ministers, and the heads of the concerned independent bodies – each within his jurisdiction – to implement this decree.

  • Abdullah bin Abdulaziz Al Saud

Article 1: Definitions

Previous Amendments
  • The following phrases are defined as indicated next to each, unless the context indicates otherwise:

  • 1- Profession: Valuation profession.

  • 2- Ministry: Ministry of Finance.

  • 3- Minister: Minister of Finance.

  • 4- Authority: Saudi Authority for Accredited Valuers.

  • 5- Law: Law of Accredited Valuers.

  • 6- Valuation: The process of estimating the value of real estate, economic establishments, or movable property of various types – excluding financial securities – according to a specific type of value and for a specific purpose.

  • 7- Branch of machinery, equipment, and movable property: This includes, for example: transportation equipment, construction equipment, office devices, general building contents, and all interests, rights, and obligations related to them.

  • 8- Register: The register in which accredited valuers are recorded with the authority.

  • 9- Valuers Registration Committee: The committee that reviews and decides on registration applications in the register.

  • 10- Valuation Standards: The standards adopted by the authority.

  • 11- Accredited Valuer: A natural or legal person licensed to practice the profession in accordance with this law.

  • 12- Council: The Board of Directors of the authority.

Article 2

  • This Law aims to set controls and standards necessary for valuation activities of real estate, economic entities, equipment, movable properties and the like, promote the profession of valuation and improve the proficiency of valuers.

Article 3

  • A natural or corporate person may not practice the profession in any sector without obtaining a license to practice in that particular sector.

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Article 4

Previous Amendments

A record shall be established in the Authority for each branch of evaluation, in which the names of the accredited evaluators shall be registered if they are natural persons. However, if they are legal persons, they shall be registered — in addition to that — in the professional companies register at the Ministry of Commerce, and they shall be subject to the provisions of the Companies Law.

Conditions for Registration in the Register

Article 5

  • A person applying for registration shall:

    • 1. be a Saudi national;

    • 2. be legally competent;

    • 3. be of good conduct, and not convicted of "hadd" [Sharia prescribed punishment], or of a crime impinging on honor or integrity, unless rehabilitated;

    • 4. have practical experience in valuation in the sector in which he applies for a license, according to the Implementing Regulations; and

    • 5. be an active member in the Authority.

Article 6

Previous Amendments

The Implementing Regulation specifies the evaluation activities for which the Council deems it necessary to have an additional period of experience to practice. The duration of the suspension stipulated in this Law does not count towards that period.

 

Registration Procedures in the Registry

Article 7

Previous Amendments
  • A- A committee called the (Registration Committee of Appraisers) shall be formed within the authority by a decision of the Council, consisting of three members, including a legal advisor and a practicing appraiser from each of the different appraisal branches.

  • The Council shall appoint a substitute for the member in case of absence, and the term of membership in the committee shall be (three) years, renewable for similar periods.

  • B- The committee shall convene in the presence of all its members and shall issue its decisions by majority vote, provided that the representation of appraisers in the committee meeting is limited to the practicing appraiser in the branch mentioned in the registration claim. The committee shall decide on the registration claim in accordance with what is stipulated in this law and its executive regulations, and the decision must be reasoned in case of rejection of the claim. The claimant may appeal to the Board of Grievances if their claim is rejected by the committee, in accordance with its regulations.

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