Article 440 of the Saudi Civil Transactions Law
المادة 440 من نظام المعاملات المدنية · الفرع الرابع: انتهاء عقد الإيجار
A lease ends when its term expires unless automatic renewal was agreed, and it is renewed if the tenant continues with the lessor's consent; a requested rent increase binds a tenant who stays without objecting.
Official text (Arabic)
This article has not been amended since the law was issued.
1- ينتهي عقد الإيجار بانقضاء المدة المعينة فيه؛ ما لم يُشتَرط تجدده تلقائيًّا.
2- إذا انتهى عقد الإيجار واستمر المستأجر في الانتفاع بالمأجور برضى المؤجر الصريح أو الضمني عُدَّ العقد مجددًا بشروطه وضماناته عدا الضمانات المقدمة من الغير، وتتعين مدة العقد الجديد وفق أحكام المادة (الثالثة عشرة بعد الأربعمائة) من هذا النظام.
3- ما لم يتجدد العقد وفقًا للفقرتين (1) و(2) من هذه المادة؛ إذا طلب المؤجر من المستأجر زيادة معينة على الأجرة المحددة وظل المستأجر حائزًا للمأجور بعد انتهاء مدة العقد دون اعتراض منه على الزيادة؛ لزمته تلك الزيادة ابتداءً من وقت انتهاء العقد القائم، وعُدَّ العقد مجددًا بشروطه وضماناته عدا الضمانات المقدمة من الغير، وتتعين مدة العقد الجديد وفق أحكام المادة (الثالثة عشرة بعد الأربعمائة) من هذا النظام.
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 440 explained in plain English
This article regulates the end of a lease and the cases where it is renewed, in three paragraphs:
1- Ending on expiry of the term: the contract ends when the term set in it expires, unless automatic renewal was agreed.
2- Implied renewal: if the contract ended and the tenant continued to use the property with the lessor's express or implied consent, the contract is considered renewed:
- With the same terms and guarantees.
- Except guarantees provided by third parties, such as a surety, which do not carry over to the new contract.
- The term of the new contract is determined under Article 413 of the Law.
3- Rent increase: if the contract is not renewed under the two preceding paragraphs, and the lessor asked the tenant for a specific increase in rent, and the tenant remained in possession of the property after the term ended without objecting to the increase, then:
- The increase binds the tenant starting from when the existing contract ended.
- The contract is considered renewed with its terms and guarantees except third-party guarantees, and its term is determined under Article 413.
In practice, a tenant's silence and staying on after a specific increase is requested has an effect, so a tenant who does not accept the increase should object to it. The article itself does not state the length of the renewed contract, but refers to Article 413.
This article connects to Article 441, which provides that a lease does not end with the death of one of the contracting parties. To know how these rules apply to a particular contract, it is advisable to consult a lawyer specializing in real estate or civil matters.
Practical example
The lease on Reem's apartment in Riyadh ended, and it had no automatic renewal clause. Before it ended, the owner asked for a rent increase of SAR 3,000 per year, and Reem stayed in the apartment after the term ended without objecting. The increase binds her from when the previous contract ended, and the contract is considered renewed with its terms and guarantees except third-party guarantees.
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 440 of the Saudi Civil Transactions Law
Does a lease renew automatically after its term ends?
The contract ends when its term expires unless automatic renewal was agreed. It is also considered renewed if the tenant continues to use the property with the lessor's express or implied consent.
Does a surety remain bound after the lease is renewed?
On renewal, the contract is considered renewed with its terms and guarantees except guarantees provided by third parties.
Am I bound by a rent increase if I stay in the apartment?
If the lessor requested a specific increase and the tenant remained in possession of the property after the term ended without objecting, the increase binds the tenant from when the existing contract ended.
How long is the renewed lease?
The term of the new contract is determined under Article 413 of the Law.
Articles this article refers to
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.