Article 331 of the Saudi Civil Transactions Law
المادة 331 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
The article states against whom a claim for entitlement to the item sold is brought, requires the buyer to notify the seller, and explains when the seller owes the warranty and when the buyer loses it.
Official text (Arabic)
This article has not been amended since the law was issued.
1- ترفع دعوى استحقاق المبيع قبل تسلمه على البائع أو المشتري أو عليهما معًا.
2- إذا رفعت على المشتري دعوى استحقاق المبيع فعليه المبادرة إلى إعلام البائع بذلك، وعلى البائع أن يتدخل في الدعوى.
3- إذا أُعلم البائع في الوقت الملائم ولم يتدخل في الدعوى أو تدخل وحكم في الحالتين باستحقاق المبيع للغير؛ لزمه الضمان، إلا إذا أثبت أن الحكم الصادر في الدعوى كان نتيجة تغرير من المشتري أو خطأ جسيم منه.
4- إذا لم يعلم المشتري البائع بالدعوى في الوقت الملائم وصدر على المشتري حكمٌ؛ سقط حقُّه في الرجوع بالضمان إذا أثبت البائع أن تدخله في الدعوى كان يؤدي إلى رفض دعوى الاستحقاق.
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 331 explained in plain English
This article deals with what happens if another person claims a right in the item sold, which is called a claim for entitlement to the item sold. It is linked to Article 330, which makes the seller warrant that the item is free of any right of a third party if that right predates the sale contract or passed to the third party from the seller.
The article sets out the following rulings:
- Before receipt: the claim is brought against the seller or the buyer or both together.
- If brought against the buyer: he must promptly notify the seller, and the seller must intervene in the case.
- The warranty applies: if the seller was notified in good time and then did not intervene, or intervened, and in either case judgment was given that the item belongs to the third party, he is bound by the warranty. He escapes it only if he proves that the judgment resulted from deception by the buyer or gross error by him.
- The buyer's default: if the buyer did not notify the seller in good time and judgment was given against him, his right to recourse on the warranty lapses, provided the seller proves that his intervention would have led to dismissal of the entitlement claim.
The practical message for the buyer is clear: notifying the seller as soon as the claim is brought preserves his right. Article 332 adds that the buyer's right to the warranty also arises if he acknowledges the third party's right or settles with him in good faith after notifying the seller in good time and the seller does not intervene. To assess the position in an existing dispute, it is advisable to consult a lawyer specialized in civil or real estate cases.
Practical example
Fahad bought land in Riyadh from Saad, and then a third person brought a claim against Fahad asserting ownership of it by a right predating the sale. Fahad promptly notified Saad of the claim, but Saad did not intervene, and judgment was given for the claimant. Here Saad is bound by the warranty to Fahad, unless he proves that the judgment resulted from deception by Fahad or gross error by him.
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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Frequently asked questions about Article 331 of the Saudi Civil Transactions Law
Against whom is a claim for entitlement to the item sold brought?
If brought before the item is received, it is brought against the seller or the buyer or both together.
What must the buyer do if a claim for entitlement is brought against him?
He must promptly notify the seller, and the seller must intervene in the case.
When does the buyer lose the right to recourse against the seller on the warranty?
If the seller was not notified in good time and judgment was given against the buyer, and the seller proves that his intervention would have led to dismissal of the claim.
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البيع عقد يُمَلِّكُ بمقتضاه البائع المبيع للمشتري مقابل ثمنٍ نقدي.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.