Article 424 of the Saudi Civil Transactions Law
المادة 424 من نظام المعاملات المدنية · الفرع الثاني: التزامات المؤجر
The lessor does not guarantee interference by a third party that is not based on a legal ground, but the lessee may request termination or a reduction of the rent if deprived of the benefit, and likewise where the benefit is reduced by an act of a public authority.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يضمن المؤجر التعرض الصادر من الغير إذا لم يكن مبنيًّا على سبب نظامي، على أنه إذا كان التعرض بسبب لا يد للمستأجر فيه، وترتب عليه حرمانه من الانتفاع بالمأجور؛ جاز له طلب الفسخ أو إنقاص الأجرة.
2- إذا ترتب على عمل من جهة عامة نقص في الانتفاع بالمأجور جاز للمستأجر طلب فسخ العقد أو إنقاص الأجرة دون إخلال بحقه في مطالبة المؤجر بالتعويض إذا كان عمل الجهة العامة قد صدر لسبب يكون المؤجر مسؤولًا عنه.
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 424 explained in plain English
This article completes the rules on the guarantee against interference in Article 423, and deals with two cases:
First: interference by a third party not based on a legal ground. The lessor does not guarantee this interference, meaning he is not held responsible for it as he is for his own interference. Nonetheless, if the interference is for a reason in which the lessee had no hand and results in his being deprived of the benefit, the lessee may request termination or a reduction of the rent. This paragraph does not mention a right to compensation from the lessor.
Second: an act of a public authority. If an act of a public authority results in a reduction in the benefit from the leased item, the lessee may request termination of the contract or a reduction of the rent. He also has, in addition, the right to claim compensation from the lessor in one case: where the public authority's act was done for a reason for which the lessor is responsible.
The difference between this article and Article 423 is that in Article 423 the lessor is liable and bound to compensate, whereas here the rule is that the lessee's right is limited to termination or a reduction of the rent, and does not extend to compensation except in the case of a public authority's act done for a reason for which the lessor is answerable.
As for the lessor's guarantee against defects, it is regulated by Article 425. To assess whether the interference is based on a legal ground or not, it is advisable to consult a lawyer who specializes in real estate or civil cases.
Practical example
Fahd rented a shop on a commercial street in Riyadh, and a public authority then closed the street for a long period to carry out a project, so his benefit from the shop was greatly reduced. Fahd may request termination of the contract or a reduction of the rent. He may claim compensation from the owner only if the authority's act was done for a reason for which the owner is responsible.
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 424 of the Saudi Civil Transactions Law
Is the owner responsible for interference by neighbors or others with the lessee?
The lessor does not guarantee interference by a third party if it is not based on a legal ground, but if the lessee is deprived of the benefit for a reason in which he had no hand, he may request termination or a reduction of the rent.
May the lessee reduce the rent because of the works of a government authority?
Yes. If an act of a public authority results in a reduction in the benefit from the leased item, he may request termination or a reduction of the rent.
When may the lessee claim compensation from the owner because of the act of a public authority?
If the public authority's act was done for a reason for which the lessor is responsible.
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.