Article 439 of the Saudi Civil Transactions Law
المادة 439 من نظام المعاملات المدنية · الفرع الثالث: التزامات المستأجر
If a tenant assigns the contract, the assignee takes the tenant's place in all the rights and obligations arising from the assigned contract.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا تنازل المستأجر عن العقد فإن المتنازل له يحل محل المستأجر في جميع الحقوق والالتزامات المترتبة بمقتضى العقد المتنازل 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 439 explained in plain English
This article explains the effect of assignment of a lease, which is where the tenant transfers the contract to another person.
The rule: if the tenant assigns the contract, the assignee takes the tenant's place in:
- All the rights arising from the contract, such as the right to use the property and the warranty rights against the lessor.
- All the obligations arising from the contract, such as paying rent, looking after the property and keeping to the agreed use.
The assignee does not get the contract's rights without its obligations. The assignee takes the tenant's place in all of them under the assigned contract.
This rule is read with Article 437, which does not allow assignment of the contract except with the lessor's permission or approval, and with Article 438, which binds a tenant permitted to assign to the limits of the use the tenant holds in kind and time.
The article does not state expressly whether the original tenant remains answerable to the lessor after the assignment; it is limited to the assignee taking the tenant's place. The parties should therefore make this clear in the assignment agreement, and consult a lawyer specializing in real estate or civil matters when needed.
Practical example
Nasser, with the owner's consent, assigned the lease of his shop in Riyadh to Faisal, with two years remaining. Faisal takes Nasser's place in all the rights and obligations arising from the contract, so he may use the shop and must pay the rent and meet the other terms of the contract.
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 439 of the Saudi Civil Transactions Law
What follows from assigning a lease?
The assignee takes the tenant's place in all the rights and obligations arising from the assigned contract.
Is the assignee bound by the terms of the original contract?
Yes, because the assignee takes the tenant's place in all the obligations arising from the assigned contract.
Can a lease be assigned without the owner's consent?
No. Under Article 437, the contract may not be assigned except with the lessor's permission or approval.
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.