Real Estate Department
The “Real Estate Department” mission consists mainly of appraising real estate properties that banks intend to acquire or real estate properties provided as collateral for loans. These real estate properties are classified according to the following:
- Real estate that a bank intends to acquire for its own use (Head Offices, branches, warehouses for archiving, etc…).
These properties cannot be acquired by the bank unless the acquisition is approved by the Banking Control Commission (BCC) after the appraisal of the “Real Estate Department in the BCC”
- Real estate that the bank intends to acquire as foreclose if the debtor is unable to repay his loan to the bank..
In this case, the Real Estate Department appraises the property before the BCC gives its approval to the bank for the acquisition, in order to check that the value is fair for both parties.
- Real estate provided as collateral against facilities or loans granted to debtors.
The BCC, as part of its on – site audit of the credit files, appraises some real estates provided as collateral (on a sampling basis) to ensure that it adequately cover the facilities granted.
- When deemed necessary, the BCC re-appraises some of the real estate properties mentioned in the above sections, in order to assess their current market value. In which case the concerned bank is asked to provide a provision for the real estate properties which have decreased in value.
In appraising real estate properties, the Real Estate Department uses a group of about 200 professional Real Estate Appraisers, consisting of “Engineers” and “Certified Real Estate Experts” with long experience and good reputation.