Article 522 of the Saudi Civil Transactions Law
المادة 522 من نظام المعاملات المدنية · الفصل الخامس: عقد الحراسة
The article bars the sequestrator from dealing with the property outside keeping and management except with the interested parties' consent, the court's permission, or without its permission in a case of urgency.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للحارس في غير أعمال الحفظ والإدارة أن يتصرف في الأموال المعهودة إليه حراستها إلا برضى ذوي الشأن، أو بإذن من المحكمة أو دون إذنها في حال الاستعجال.
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 522 explained in plain English
This article distinguishes between two kinds of acts by the sequestrator:
- Acts of keeping and management: These are at the core of his task, as in Article 521, which requires him to exercise the care of the ordinary person in them.
- Dealing with the property outside acts of keeping and management: such as selling or pledging the property or anything else that goes beyond keeping and management. For this, the default is prohibition.
The sequestrator may carry out this kind of dealing only in one of three cases:
- The consent of the interested parties, that is, the agreement of the parties to the dispute.
- The court's permission.
- A case of urgency, in which he may act without the court's permission.
The reasoning is that the property is disputed and its owner has not yet been determined, so the sequestrator should not take decisions that go beyond protecting and managing it without the approval of the interested parties or the court's oversight, unless the matter is urgent and cannot wait. The text does not define the test for urgency, so it is assessed according to the circumstances of each case.
It is followed by Article 523, which requires the sequestrator to provide the interested parties with information on the performance of his task, and to render an account of it at the times and in the manner the parties agree or the court orders.
Before any major dealing with property under sequestration, it is advisable to consult a lawyer specializing in civil or real estate matters.
Practical example
A sequestrator was appointed over a quantity of fruit in a warehouse in Al-Qassim that two merchants dispute, and it began to spoil quickly. The sequestrator may sell it without waiting for the court's permission because the case is urgent. But if he wanted to sell land under his sequestration, he would need the consent of the two merchants or the court's permission.
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 522 of the Saudi Civil Transactions Law
May the sequestrator sell the property under his sequestration?
He may not deal with it outside acts of keeping and management except with the interested parties' consent, with the court's permission, or without its permission in a case of urgency.
When does the sequestrator act without the court's permission?
In a case of urgency, or if the interested parties consent to the dealing.
Does the sequestrator need permission for ordinary management acts?
The prohibition in the article concerns dealing with the property outside acts of keeping and management.
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.