Article 438 of the Saudi Civil Transactions Law
المادة 438 من نظام المعاملات المدنية · الفرع الثالث: التزامات المستأجر
A tenant permitted to sublease or assign to another is then bound by the limits of the use the tenant holds, in its kind and its duration.
Official text (Arabic)
This article has not been amended since the law was issued.
يتقيد المستأجر المأذون له بالتأجير أو التنازل للغير عند قيامه بذلك بقيود المنفعة التي يملكها نوعًا وزمنًا.
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 438 explained in plain English
This article completes Article 437, which does not allow the tenant to sublease the leased property or assign the contract except with the lessor's permission or approval. If the tenant is permitted to do so, the tenant's freedom is not unlimited.
The rule: a permitted tenant who subleases or assigns to another is bound by the limits of the use the tenant holds, in two respects:
- Kind: the tenant may not give the new tenant a use of a kind different from what the tenant holds. If the property was leased to the tenant for housing, the tenant may not lease it to another for a different kind of activity.
- Time: in subleasing or assigning, the tenant may not exceed the period for which the tenant holds the use. A tenant with one year left on the contract may not lease it to another for two years.
The basic idea is that a tenant cannot give another more than the tenant has. The tenant holds a use defined in kind and time, and what the tenant gives another does not go beyond those limits.
This article also connects to Article 439, which provides that the assignee takes the tenant's place in all the rights and obligations arising from the assigned contract.
Anyone who wants to sublease or assign and needs to confirm the limits of what they hold should consider consulting a lawyer specializing in real estate or civil matters.
Practical example
An establishment in Jeddah leased an office for four years to use as an administrative office, and the owner permitted it to sublease. After two years it wanted to lease it to another company. It may not lease it for more than the remaining two years, nor for a use outside the kind of use it holds.
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 438 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 438 of the Saudi Civil Transactions Law
Can a subtenant use the property for a different purpose?
No. A tenant permitted to sublease is bound by the limits of the use the tenant holds in kind, so the tenant cannot give another a use of a different kind.
Can a sublease run longer than the original contract?
No. The text binds the tenant to the limits of the use the tenant holds in time.
Is the owner's permission enough for the tenant to do as the tenant likes?
No. Even with permission the tenant is bound by the kind and duration of the use the tenant holds.
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.