Article 411 of the Saudi Civil Transactions Law
المادة 411 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الإيجار
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 يزاد عليها ولا ينقص منها، وللمستأجر في حالة النقص طلب فسخ العقد.
2- إذا حددت في العقد أجرة كل وحدة التزم المستأجر بالأجرة المحددة للوحدات الزائدة، والتزم المؤجر بإنقاص الأجرة المحددة للوحدات الناقصة، وللمستأجر طلب الفسخ في الحالتين.
3- إذا كان مقدار النقص أو الزيادة يسيرًا ولا أثر له في المنفعة المقصودة فليس للمستأجر طلب الفسخ.
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 411 explained in plain English
This article deals with the case where the number of units of the leased item differs from what is stated in the contract, such as the number of rooms, meters or shops, and distinguishes between three cases:
1- A lump-sum rent without a rent set per unit (paragraph 1): if the lease is made on a specified item for a lump-sum rent, and the number of its units is stated without stating the rent of each unit, and the units then turn out to be more or fewer, the rent stays as it is in the contract, neither increased nor reduced. But the lessee in the case of a shortfall may request termination of the contract.
2- A rent set per unit (paragraph 2): if the contract sets the rent of each unit, the lessee is bound to pay the rent for the excess units, and the lessor is bound to reduce the rent for the missing units. The lessee may request termination in both cases, that is, in case of an excess and in case of a shortfall.
3- A slight shortfall or excess (paragraph 3): if the amount of the shortfall or excess is slight and has no effect on the intended benefit, the lessee may not request termination. Both descriptions must be present together: it must be slight, and it must not affect the intended benefit.
The practical benefit is that the way the rent is written in the contract, as a lump sum or per unit, determines the consequences of any difference in the number of units.
To assess a particular situation, it is advisable to consult a lawyer who specializes in real estate or civil cases.
Practical example
A company in Riyadh leased a warehouse whose area was stated in the contract as 1,000 meters, for a lump-sum rent of 100,000 riyals a year without setting a rent per meter, and it then turned out that its area is 800 meters. The rent stays as it is in the contract, but the company may request termination of the contract because of the shortfall, unless the shortfall is slight and has no effect on the intended benefit.
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 411 of the Saudi Civil Transactions Law
What if the area of the leased property is less than stated in the contract?
If the rent is a lump sum with no rent set per unit, the rent stays as it is and the lessee may request termination in case of a shortfall; if the rent of each unit is set, the lessor must reduce the rent for the missing units, and the lessee may request termination.
Does the lessee pay additional rent if there are excess units?
He is bound to pay it if the rent of each unit is set in the contract; if the rent is a lump sum without stating the rent of a unit, it is not increased.
Can the lease be terminated for any shortfall in area?
No. If the shortfall or excess is slight and has no effect on the intended benefit, the lessee may not request termination.
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 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.
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.