Article 523 of the Saudi Civil Transactions Law
المادة 523 من نظام المعاملات المدنية · الفصل الخامس: عقد الحراسة
The article requires the sequestrator to provide the interested parties with information on the performance of his task and to render an account at the times and in the manner agreed or ordered by the court.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم الحارس بأن يقدم لذوي الشأن المعلومات التي تتعلق بتنفيذ مهمته، وأن يقدم حسابًا عنها في المواعيد وبالطريقة التي يتفق عليها الطرفان أو تأمر بها المحكمة.
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 523 explained in plain English
The sequestrator manages property that is not his, so this article requires him to be transparent toward the interested parties through two obligations:
- Providing information: He must provide the interested parties with information on the performance of his task, such as the condition of the property and what he has done.
- Rendering an account: He must render an account of his task, meaning a statement of what he received, what he spent, and what remains.
The times and manner of the account are set by one of two things: what the parties agree, or what the court orders. The interested parties may, for example, agree on a written monthly account, and the court may set another method. The text itself does not specify a particular period or form for the account.
This article complements the one before it: Article 522 restricts the sequestrator's dealing outside keeping and management to the consent of the interested parties, the court's permission, or a case of urgency, and this article lets the interested parties follow what he actually does. It is followed by Article 524, which gives the sequestrator the right to recover sums he spent in performing his work to the customary extent, and the account is the practical means of proving those sums.
If the sequestrator refuses to provide information or an account, it is advisable to consult a lawyer specializing in civil matters to learn the available steps.
Practical example
A sequestrator was appointed over a disputed commercial complex in Riyadh, and the partners agreed with him that he would render an account every 3 months. The sequestrator must provide them at that time with a statement of the rent collected and the expenses, and answer their questions about his management of the complex.
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 523 of the Saudi Civil Transactions Law
Must the sequestrator render an account to the parties to the dispute?
Yes, he must provide the interested parties with information on the performance of his task and render an account of it.
Who sets the times for the sequestrator's account?
They are set by what the parties agree or by what the court orders.
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.