Article 25 of the Saudi Civil Transactions Law

المادة 25 من نظام المعاملات المدنية · الفصل الرابع: أنواع الحق

The article divides financial rights into two kinds: personal rights and real rights.

Official text (Arabic)

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

يكون الحقُّ الماليُّ شخصيًّا أو عينيًّا.

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 25 explained in plain English

This article sets the basic division of financial rights. A financial right is either:

a personal right, or
a real right.

Meaning of the division: The article did not define each kind, but laid down the division on which later rules are built. In legal usage, a personal right generally means a right one person has against another person who is obliged toward him, such as a creditor's right to claim from his debtor, while a real right attaches directly to a specific thing.

Detail of the real right: Article 26 sets out the real right, dividing it into:

Principal real rights: the right of ownership, the right of usufruct, the right of use, the right of habitation, the right of easement, the right of endowment (waqf), and what is so considered under the legal provisions.
Accessory real rights: the right of mortgage, the right of privilege, and what is so considered under the legal provisions.

The practical importance: Knowing the kind of right helps its holder understand his position: whether his right relates to a specific thing, like his ownership of a house, or to another person's obligation toward him, like an amount he lent to someone.

Article 24 provides that the legal provisions specific to public property apply to it. To know the nature of a particular right in an existing dispute, it is advisable to consult a lawyer who specializes in civil cases.

Practical example

Khalid owns an apartment in Riyadh and lent a friend an amount of money. His ownership of the apartment is a real right that attaches to the apartment itself, and it is one of the principal real rights mentioned in Article 26. His right to recover the loan amount from his friend is a personal right against the debtor.

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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