Article 426 of the Saudi Civil Transactions Law
المادة 426 من نظام المعاملات المدنية · الفرع الثاني: التزامات المؤجر
If a defect deprives the tenant, fully or partly, of use of the leased property, the tenant may request termination or a rent reduction, while keeping the right to compensation.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا ترتب على العيب حرمان المستأجر كليًّا أو جزئيًّا من الانتفاع بالمأجور جاز له طلب الفسخ أو إنقاص الأجرة دون إخلال بحقه في التعويض.
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 426 explained in plain English
This article sets out what a tenant is entitled to when the leased property has a defect that falls within the lessor's warranty under Article 425.
The condition: the defect must result in depriving the tenant of use, whether fully (the tenant cannot use the property at all) or partly (the tenant can use it only in a reduced way).
The tenant's available rights:
- Requesting termination of the contract.
- Requesting a rent reduction in proportion to the use the tenant lost.
- Compensation: the text states expressly that requesting termination or a reduction is "without prejudice to the tenant's right to compensation", meaning the tenant keeps the right to compensation for the harm in addition to either option.
The wording "may request" means the choice is the tenant's: the tenant picks what suits them, and the contract does not terminate automatically just because the defect appears.
This rule is read together with Article 425, which excludes from the warranty defects that are tolerated by custom and defects the tenant knew about when contracting; those do not give the tenant the rights above. It is also read with Article 427, which makes void any agreement that exempts the lessor from the warranty for defects or limits it where the lessor deliberately concealed the cause.
The article does not specify how the reduction is calculated or the amount of compensation, so anyone facing this situation is advised to consult a lawyer specializing in real estate or civil matters.
Practical example
A company in Jeddah leased a warehouse to store its goods, and it later turned out that the roof leaked rainwater, making half of the space unfit for storage. The company did not know about this when contracting. The company may request termination of the contract or a rent reduction, and may also claim compensation for the goods that were damaged.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 426 of Civil Transactions Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Civil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 426 of the Saudi Civil Transactions Law
Can a tenant terminate the lease because of a defect in the property?
Yes. If the defect fully or partly deprives the tenant of use, the tenant may request termination or a rent reduction.
Can a tenant get both termination and compensation?
Yes. The text makes the request for termination or a rent reduction without prejudice to the tenant's right to compensation.
Does the lease end automatically when a defect appears?
No. The article gives the tenant the right to request, so it is the tenant who chooses between termination and a rent reduction.
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.