Article 354 of the Saudi Civil Transactions Law
المادة 354 من نظام المعاملات المدنية · الفرع الثالث: البيع في مرض الموت
A sale or purchase at a favorable price by a person in death-sickness does not take effect, to the extent of the favor, against the heirs: for an heir without their approval, for a non-heir beyond one third of the estate.
Official text (Arabic)
This article has not been amended since the law was issued.
1- بيع المريض مرض الموت لوارثٍ وشراؤه منه بمحاباةٍ لا ينفذ في قدر المحاباة في حق باقي الورثة إلا بإجازتهم.
2- بيع المريض مرض الموت لغير وارث وشراؤه منه بمحاباةٍ لا ينفذ في قدر المحاباة في حق الورثة فيما زاد على قيمة (ثلث) التركة عند الموت بما فيها المبيع ذاته، إلا بإجازتهم أو أن يردّ المتصرف إليه للتركة ما يفي بإكمال (الثلثين).
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 354 explained in plain English
This article protects the heirs from dispositions made by a person in death-sickness (defined in Article 353) that involve a favor (muhaba), that is, a sale for less than value or a purchase for more than value. It distinguishes between two cases:
First: a sale or purchase with an heir. If the sick person sells to an heir or buys from him at a favorable price, the disposition does not take effect to the extent of the favor against the other heirs except with their approval.
Second: a sale or purchase with a non-heir. If it involves a favor, it does not take effect to the extent of the favor against the heirs beyond the value of one third of the estate at death, and the item sold itself is included in calculating the estate. In this case the disposition takes effect in one of two situations:
- if the heirs approve it;
- or if the person dealt with returns to the estate what completes two thirds.
Note that the ruling concerns the extent of the favor only, not the whole sale; the part of the disposition that corresponds to value is not addressed by the article with this ruling.
Article 355 adds that the non-effectiveness of a sale by a person in death-sickness cannot be invoked if the buyer disposed of the item in a way that gave a good-faith person a real right in it for consideration, while the heirs' right to have recourse against the buyer for what completes two thirds of the estate or the fair price remains.
Because applying these rules requires valuing the item sold and the estate, it is advisable to consult a lawyer specialized in personal status or civil cases.
Practical example
Abdulrahman was in death-sickness, and sold his son Faisal land worth SAR 900,000 for SAR 300,000. The extent of the favor here is SAR 600,000, and it does not take effect against the other heirs unless they approve it.
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 354 of the Saudi Civil Transactions Law
Is a sale by a person in death-sickness to one of his sons at a cheap price valid?
The sale does not take effect, to the extent of the favor, against the other heirs except with their approval.
What is the ruling on a sale by a person in death-sickness to a non-heir at a favorable price?
It does not take effect, to the extent of the favor, beyond the value of one third of the estate at death, except with the heirs' approval or if the buyer returns to the estate what completes two thirds.
Is the whole sale void because of the favor?
The article makes the non-effectiveness apply to the extent of the favor, not to the whole sale.
More articles on Sale Contract
- Article 23
The article defines consumable things as those whose use, according to what they are prepared for, is limited to consuming or spending them, and treats everything prepared in stores for sale as consumable.
الأشياء القابلة للاستهلاك هي التي ينحصر استعمالها -بحسب ما أُعدّت له- في استهلاكها أو إنفاقها، ويعد قابلًا للاستهلاك كل ما أعد في المتاجر للبيع.
- Article 44
Paying earnest money gives only the payer the right to withdraw from the contract without recovering it, unless otherwise agreed; the court sets the withdrawal period if the parties have not.
1- دفع العربون عند إبرام العقد يفيد أن لدافع العربون وحده الحق في العدول عن العقد، وليس له إذا عدل أن يسترد مبلغ العربون، وذلك كله ما لم يتفق على خلافه. 2- إذا
- Article 109
The article provides that exchange contracts are concluded on the basis that the subject matter is free of defects except what custom tolerates, and that an intolerable defect is a breach of the obligation.
تُعدُّ عقود المعاوضات منعقدةً على أساس سلامة محل العقد من العيوب إلا ما جرى العرف على التسامح فيه، فإذا تبيَّن في المحل عيبٌ لم يجر العرف على التسامح فيه؛ عُدَّ
- Article 165
The article provides that a right to a thing specified by kind attaches to a particular item only once it is set apart, and lets the creditor, on non-performance, obtain a like item at the debtor's expense.
1- إذا تعلق الحق بشيء معين بالنوع لا بالذات، فإنه لا يختص بشيء بذاته من ذلك النوع إلا بإفرازه. 2- إذا لم يقم المدين بتنفيذ التزامه جاز للدائن أن يحصل على شيء من
- Article 166
The article places the risk of destruction or damage on the debtor who failed to deliver, in two cases: transfer of a real right and an obligation to perform work involving delivery, each on different conditions.
1- الالتزام بنقل حق عيني يتضمن الالتزام بتسليم الشيء والمحافظة عليه حتى تسليمه، فإذا لم يقم المدين بتسليمه حتى هلك أو تلف كانت تبعة ذلك عليه. 2- إذا كان محل الا
- Article 307
Article 307 defines sale as a contract under which the seller transfers ownership of the item sold to the buyer for a cash price.
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.