Article 427 of the Saudi Civil Transactions Law
المادة 427 من نظام المعاملات المدنية · الفرع الثاني: التزامات المؤجر
Any agreement exempting the lessor from the warranty against interference or defects, or limiting it, is void if the lessor deliberately concealed the cause of the warranty.
Official text (Arabic)
This article has not been amended since the law was issued.
يقع باطلًا كل اتفاق يتضمن الإعفاء أو الحد من ضمان التعرض أو العيب إذا كان المؤجر قد تعمّد إخفاء سبب هذا الضمان.
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 427 explained in plain English
A lessor may put a clause in the lease exempting itself from liability for defects in the leased property or for interference with the tenant, or limiting that liability, for example by writing that "the tenant accepts the property as is and has no recourse against the lessor".
This article puts a limit on such clauses: any agreement containing the following is void:
- Exemption from the warranty against interference or defects, or
- Limitation of that warranty,
provided that the lessor deliberately concealed the cause of the warranty, that is, hid the defect or the cause of the interference from the tenant on purpose.
The text ties voidness to deliberate concealment, and the reasoning is clear: a lessor may not benefit from a clause it drafted while hiding from the tenant something it knows harms the tenant's use.
This rule connects to the preceding warranty provisions: the warranty against interference in Articles 423 and 424, the warranty against defects in Article 425, and the rights that follow from a defect in Article 426 (termination or a rent reduction, with compensation). Where an exemption or limitation clause is void because of deliberate concealment, the clause carries no weight.
Proving deliberate concealment is a matter that depends on the facts, so anyone facing this situation should consider consulting a lawyer specializing in real estate or civil matters.
Practical example
An owner leased an apartment in Riyadh to Abdullah and wrote in the contract that the tenant has no recourse for any defect. The owner knew the apartment had a serious drainage leak and covered it with paint to hide it. Because the owner deliberately concealed the defect, the exemption clause is void.
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 427 of the Saudi Civil Transactions Law
Is a clause saying the landlord is not responsible for defects in the property valid?
Any agreement exempting the lessor from the warranty against defects or interference, or limiting it, is void if the lessor deliberately concealed the cause of the warranty.
What does deliberately concealing the cause of the warranty mean?
It means the lessor knowingly hid from the tenant the defect in the leased property or the cause of the interference that the lessor is responsible for.
Does the rule cover clauses that only limit liability rather than cancel it?
Yes. The text covers both exemption from the warranty and limitation of it, whenever the lessor deliberately concealed its cause.
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.