Article 517 of the Saudi Civil Transactions Law
المادة 517 من نظام المعاملات المدنية · الفصل الخامس: عقد الحراسة
The article defines sequestration as a contract under which the sequestrator keeps and manages disputed property and returns it with its yield to the person found entitled to it.
Official text (Arabic)
This article has not been amended since the law was issued.
الحراسة عقدٌ يتولى بمقتضاه الحارس حفظ مالٍ متنازع فيه وإدارته ورده مع غلته إلى من يثبت له الحق فيه.
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 517 explained in plain English
This article, which falls in the fifth chapter on the sequestration contract, defines that contract. Sequestration is a means of protecting property that more than one person disputes, until the person entitled to it is determined.
The definition shows that sequestration has essential elements:
- Disputed property: Sequestration concerns property that is the subject of a dispute, such as real estate heirs or partners disagree over.
- Keeping: The sequestrator undertakes to protect the property from loss or damage.
- Management: His role is not limited to keeping; he also manages the property, such as collecting rent on disputed real estate.
- Return with the yield: The sequestrator must return the property together with its yield, meaning the income it produces, to the person found entitled to it.
The sequestrator is neither the owner of the property nor a person with a right in it; he is a temporary trustee over it until the dispute is resolved.
Article 518 explains how the sequestrator is appointed: by agreement of the interested parties, and failing that the court may appoint him if it sees that leaving the property in the hands of its possessor poses an urgent danger.
If you have disputed property and are considering requesting sequestration over it, it is advisable to consult a lawyer specializing in civil or real estate matters, depending on the type of property.
Practical example
Three brothers in Riyadh disagreed over ownership of a rented residential building. They agreed to hand it to a sequestrator to keep and manage it and collect its rent, so that when the right is established for one of them or for all of them, the sequestrator returns the building, with the rent he has collected, to the person entitled.
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 517 of the Saudi Civil Transactions Law
What is a sequestration contract?
It is a contract under which the sequestrator keeps and manages disputed property and returns it with its yield to the person found entitled to it.
Does the sequestrator return the profits of the disputed property?
Yes, he must return the property with its yield to the person found entitled to it.
How is the sequestrator appointed?
Under Article 518, by agreement of the interested parties, and failing that the court may appoint him if it sees that leaving the property in its possessor's hands poses an urgent danger.
More articles on Deposit and Sequestration
- 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 506
The article defines deposit as a contract under which the depositary keeps the depositor's property on the basis that he will return it in kind.
الإيداع عقد يحفظ بمقتضاه المودع لديه مال المودع على أن يرده بعينه.
- Article 507
The depositary is not entitled to a fee for keeping the deposit unless otherwise agreed.
ليس للمودع لديه أجر على حفظ الوديعة؛ ما لم يتفق على خلاف ذلك.
- Article 508
If the deposit is unpaid, the contract is formed only when the depositary takes possession of the deposit.
إذا كان الإيداع بلا أجرٍ فلا ينعقد إلا بالقبض.
- Article 509
The article sets the care owed by the depositary in keeping the deposit depending on whether it is paid or unpaid, and who may keep it.
1- يلتزم المودع لديه بأن يبذل في حفظ الوديعة العناية التي يبذلها في حفظ ماله الخاص دون أن يكلف في ذلك أزيد من عناية الشخص المعتاد، فإن كان الإيداع بأجر فعليه أن
- Article 510
The depositary may not deposit the deposit with a third party without the depositor's permission unless he is compelled to, and he must retrieve it once the reason ceases.
ليس للمودع لديه أن يودع الوديعة لدى الغير دون إذن المودع إلا إذا كان مضطرًّا، وعليه استعادتها بعد زوال السبب.
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.