Article 408 of the Saudi Civil Transactions Law
المادة 408 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الإيجار
The article allows the leased item to be a thing, a usufruct or a right, specified individually or by type, and also allows it to be an undivided share.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يصح أن يكون المأجور عينًا أو منفعةً أو حقًّا؛ سواء كان معيَّنًا بالذات أو بالنوع.
2- يصح أن يكون المأجور حصَّةً شائعة.
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 408 explained in plain English
This article specifies what may be the subject of a lease contract (the leased item), and widens its scope as follows:
Paragraph (1) - kinds of leased item:
- A thing: such as an apartment, a shop or a car.
- A usufruct: that is, the benefit of a thing, as when someone who owns the usufruct of a property leases it out.
- A right: the subject of a lease may be a right.
In all of these, the leased item may be specified individually (a thing identified by itself, such as an apartment with a particular number) or specified by type (identified by its description and kind without designating a particular piece, such as a car of a particular model).
Paragraph (2) - an undivided share: the leased item may be an undivided share, that is, a share not set apart in jointly owned property, such as a quarter of a building owned by several partners.
This article must be read with the definition of a lease in Article 407, which requires that the leased item be a non-consumable thing and that the benefit be for a specified period in return for rent.
To assess a particular situation, it is advisable to consult a lawyer who specializes in real estate or civil cases.
Practical example
Sami owns, together with his brothers, a building in Medina, and his share in it is a quarter, not set apart. He may lease his undivided share to another person under paragraph (2) of the article.
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 408 of the Saudi Civil Transactions Law
Can a usufruct or a right be leased?
Yes. The leased item may be a thing, a usufruct or a right.
Can an undivided share in real estate be leased?
Yes. Paragraph (2) provides that the leased item may be an undivided share.
Must the leased item be specified individually?
No. It may be specified individually or by type.
More articles on Lease Contract
- Article 287
The article prevents set-off between a depositary's debt against the depositor and the deposit, or between a borrower's debt against the lender and the loaned item, except by agreement of the parties.
إذا كان للمودع لديه دينٌ على المودع أو كان للمستعير دين على المعير، فلا تقع المقاصة بين الدين والوديعة أو بين الدين والشيء المعار ولو كان الدين من نوع أي منهما
- Article 296
The article sets a period of 5 years after which a claim is not heard against a party who denies it, for the rights of the liberal professions and recurring periodic rights, with an exception of 10 years for the proceeds owed by a bad-faith possessor and endowment proceeds.
دون إخلال بالنصوص النظامية، لا تُسمع الدعوى على المنكر بانقضاء (خمس) سنوات في الحقوق الآتية: أ- حقوق أصحاب المهن الحرة، كالأطباء والمحامين والمهندسين عما أدوه م
- Article 407
The article defines a lease as a contract by which the lessor enables the lessee to benefit from a non-consumable thing for a specified period in return for rent.
الإيجار عقد يُمَكِّنُ بمقتضاه المؤجر المستأجر من الانتفاع مدةً معينةً بشيءٍ غير قابل للاستهلاك مقابل أجرةٍ.
- Article 409
The article allows it to suffice to state sound bases for determining the rent, and allows the rent to be a specified sum together with a known percentage of the output or profit.
يصح أن يقتصر تقدير الأجرة على بيان أسسٍ صالحةٍ تتحدد بمقتضاها، ويصح أن تكون بمبلغٍ معيَّنٍ مع نسبةٍ معلومةٍ من الناتج أو من الربح.
- Article 410
The article allows a lease contract to require that the rent be paid in advance, deferred or paid in installments.
يصح اشتراط تعجيل الأجرة أو تأجيلها أو تقسيطها.
- Article 411
The article regulates the rent and the right to terminate where the number of units of the leased item turns out to be more or less than stated in the contract, depending on whether the rent is a lump sum or set per unit.
1- إذا عُقد الإيجار على شيءٍ معينٍ بأجرةٍ إجماليةٍ، وذُكر عدد وحداته دون بيان أجرة كل وحدة منها، فظهرت وحداته أزيد أو أنقص؛ كانت الأجرة هي المحددة في العقد لا ي
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.