Article 410 of the Saudi Civil Transactions Law
المادة 410 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الإيجار
The article allows a lease contract to require that the rent be paid in advance, deferred or paid in installments.
Official text (Arabic)
This article has not been amended since the law was issued.
يصح اشتراط تعجيل الأجرة أو تأجيلها أو تقسيطها.
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 410 explained in plain English
This article gives the parties to a lease contract freedom to agree on the timing of payment of the rent, so that any of the following forms may be required:
- Rent in advance: that the rent be paid beforehand, all of it or in the amount the parties agree on.
- Deferred rent: that it be paid at a later time the parties agree on.
- Rent in installments: that it be paid in installments, such as monthly, quarterly or semi-annual payments.
The article here establishes that these conditions are permitted, so determining the form chosen and its details is left to what the parties agree on in the contract.
This agreement has an important practical effect: Article 417 allows the lessor to withhold delivery of the leased item until he receives the rent due in advance; so if the parties require the rent, or part of it, to be paid in advance, the lessor has this right.
This article complements Article 409, which sets out the ways of determining rent, whether by stating sound bases for determining it or by a specified sum together with a known percentage of the output or profit.
The practical advice is to write clearly in the contract the date and amount of each payment, to avoid disagreement later.
To assess a particular situation, it is advisable to consult a lawyer who specializes in real estate or civil cases.
Practical example
Ali rented an apartment in Dammam at an annual rent of 36,000 riyals, and agreed with the lessor to pay the rent in four quarterly installments, the first paid in advance on signing. This agreement is permitted under 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 410 of the Saudi Civil Transactions Law
Can a lease require that rent be paid in advance?
Yes. The article allows the rent to be required in advance.
Can the rent be paid in installments?
Yes. It is valid to require the rent to be paid in installments, as it is valid to require it to be deferred.
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 408
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.
1- يصح أن يكون المأجور عينًا أو منفعةً أو حقًّا؛ سواء كان معيَّنًا بالذات أو بالنوع. 2- يصح أن يكون المأجور حصَّةً شائعة.
- 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 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.