Article 349 of the Saudi Civil Transactions Law
المادة 349 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
The buyer may withhold the price if an entitlement claim is brought based on an earlier right or one from the seller, or a warranted defect appears, until the seller gives security for repaying the price.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا رفعت على المشتري دعوى استحقاق المبيع مستندةً إلى حقٍّ سابقٍ على البيع أو آيلٍ إلى مدعي الاستحقاق من البائع؛ جاز للمشتري حبس الثمن حتى يقدم البائع ضمانًا مناسبًا برد الثمن عند ثبوت الاستحقاق. وللبائع أن يطلب من المحكمة تكليف المشتري إيداع الثمن لدى الجهة التي يحددها وزير العدل بدلًا من تقديم الضمان.
2- يسري حكم الفقرة (1) من هذه المادة إذا تبين للمشتري أن في المبيع عيبًا مضمونًا على البائع.
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 349 explained in plain English
This article gives the buyer a means of protecting himself, which is withholding the price, that is, temporarily refraining from paying it, in two cases:
- An entitlement claim: if a claim for entitlement to the item sold is brought against the buyer, provided it is based on a right predating the sale, or a right that passed to the claimant from the seller.
- A warranted defect: if the buyer finds that the item has a defect that the seller warrants.
In both cases the right of withholding continues until the seller provides suitable security for repayment of the price if the entitlement is established. The point is that the buyer should not pay a price he may later have to seek to recover.
An alternative available to the seller: instead of providing security, the seller may ask the court to order the buyer to deposit the price with the body designated by the Minister of Justice. The article does not name this body but leaves its designation to the Minister.
The article thus strikes a balance: the buyer is not forced to pay the seller the price while his right in the item is threatened, and the seller is not deprived of the price if it is deposited with a neutral body.
In a related context, Article 348 specifies the place of payment of the price, and Article 350 permits the seller to treat the sale as rescinded without notice if he stipulated that where the price is not paid by a set date and the buyer does not pay it, unless otherwise agreed.
Because withholding the price without its conditions being met may expose the buyer to liability, it is advisable to consult a lawyer specialized in civil or real estate cases.
Practical example
Talal bought land in Riyadh on terms that he would pay the balance of the price after two months, and then a person brought a claim against him asserting ownership of the land by a right predating the sale. Talal may withhold the balance of the price until the seller provides suitable security for its repayment if the entitlement is established; alternatively the seller may ask the court to order Talal to deposit the price with the body designated by the Minister of Justice.
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 349 of the Saudi Civil Transactions Law
May the buyer stop paying the price if a claim is brought against him over the item sold?
Yes, if it is an entitlement claim based on a right predating the sale or one that passed to the claimant from the seller, until the seller provides suitable security for repaying the price.
May the price be withheld because of a defect in the item sold?
Yes, if the buyer finds that the item has a defect the seller warrants.
What can the seller do if the buyer withholds the price?
He may provide suitable security for repaying the price, or ask the court to order the buyer to deposit the price with the body designated by the Minister of Justice.
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- Article 109
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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.