Article 19 of the Saudi Accredited Valuers Law

المادة 19 من نظام المقيمين المعتمدين

This article makes an individual accredited valuer responsible for compensating harm to the client or third parties caused by their errors in their work, and makes liability joint among the partners if the valuer is a firm.

Official text (Arabic)

This article has not been amended since the law was issued.

يُسأل المقيّم المعتمد إذا كان شخصاً ذا صفة طبيعية عن تعويض الضرر الذي يصيب العميل، أو الغير بسبب الأخطاء الواقعة منه في أداء عمله ، أما إذا كان شخصاً ذا صفة اعتبارية فتكون المسؤولية تضامنية بين الشركاء .

This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers

Article 19 explained in plain English

This article establishes the civil liability of the accredited valuer for their errors.

1. The individual valuer

If the accredited valuer is a natural person, they are liable to compensate harm:

that affects the client, or
that affects third parties,

because of errors they make in performing their work.

2. The valuation firm

If the valuer is a legal person, liability is joint among the partners. Joint liability means the injured party may claim compensation from any of the partners.

Including third parties: liability is not limited to the client who requested the valuation, but extends to third parties harmed by the valuer's error. A possible example is someone who relies on the report in a transaction such as a purchase or financing.

Condition of liability: the harm must result from an error the valuer made in performing their work. The article does not define what counts as an error; that is assessed in each case according to its circumstances.

Relationship to other articles: Article 18 requires the valuer to keep all information relating to the valuation process confidential except with the client's written consent or at the request of the competent official bodies. Article 20 requires the valuer to disclose any direct or indirect interest in what they are asked to value.

Anyone harmed by an incorrect valuation should consult a lawyer who specializes in civil cases and compensation to assess their situation.

Practical example

Ahmed bought a property in Riyadh after relying on a valuation report prepared by a valuation firm, and it later emerged that the report contained an error in the area of the land that led to overstating its value. Under the article, liability for compensating the harm resulting from the firm's error in its work is joint among the partners.

Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.

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