Banking disputes committee orders bank to transfer 3 villas, overturns debts

Logo of The Committee for Banking and Financial Disputes and Violations

The Committee for Banking and Financial Disputes and Violations mandated a local bank to transfer three villas to the heirs of a businessman, Okaz, an Arabic newspaper, reported. 

The ruling also entails relieving the heirs of any debts previously associated with their deceased family member. 

The newspaper noted that the court ruling was final, calling all relevant government departments and agencies to enforce the decision through all legal means, even if it necessitates using coercive force by the police. 

The deceased businessman purchased the three villas in installments. Following his death, the heirs requested the bank to transfer the property and clear the debts. However, the bank refused, leading the heirs to pursue legal action. 

According to Okaz, the real estate financing contract between the businessman and the bank outlined that the latter would waive remaining installments and vacate the property for the heirs upon the businessman’s death based on contractual terms. 

Despite the businessman's consistent payment during his lifetime, the bank declined to execute the agreement. The bank justified its refusal by citing the rejection of exemption by the insurance company, attributing it to the heirs' delay in providing necessary documents, reports, and the death certificate within the stipulated legal period in the insurance document. 

In response, the bank sought the dismissal of the heirs' lawsuit and the annulment of the disputed contract, obligating the heirs to pay the property rent.