Article 525 of the Saudi Civil Transactions Law
المادة 525 من نظام المعاملات المدنية · الفصل الخامس: عقد الحراسة
The article provides that the sequestrator is entitled to the agreed fee on performing the work, and if no fee was agreed, to the fair fee.
Official text (Arabic)
This article has not been amended since the law was issued.
يستحق الحارس الأجر المتفق عليه بأداء العمل فإن لم يُتفق على دفع أجرٍ كان له أجر المثل.
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 525 explained in plain English
This article sets the sequestrator's fee, and distinguishes between two cases:
- A fee was agreed: The sequestrator is entitled to the agreed fee, and his entitlement arises on performing the work.
- No fee was agreed: The sequestrator is entitled to the fair fee, meaning the fee usually received by someone doing similar work in similar circumstances.
The wording of the text implies that silence about a fee does not mean the sequestrator works for free; the fair fee is then referred to. But the Law also recognizes the volunteer sequestrator, since Article 526 speaks of the case of the volunteer sequestrator and the case of the sequestrator who works for pay, and sets rules for each on withdrawing from the task.
The fee must be distinguished from expenses: Article 524 gives the sequestrator the right to recover sums he spent in performing his work to the customary extent, and this is a right independent of the fee, which is payment for his effort.
The article does not specify how the fair fee is assessed or who pays it. If there is a dispute about the amount of the fee, it is advisable to consult a lawyer specializing in civil matters.
Practical example
Two disputing partners in Jeddah agreed to appoint an accountant as sequestrator over a shop without setting a fee for him. Once the accountant has done his work, he is entitled to the fair fee, meaning what someone who keeps and manages a similar shop usually receives.
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 525 of the Saudi Civil Transactions Law
Is the sequestrator entitled to a fee if none was agreed?
Yes, if no fee was agreed he is entitled to the fair fee.
When is the sequestrator entitled to the agreed fee?
He is entitled to it on performing the work.
Does the sequestrator's fee include what he spent on the property?
No, Article 524 gives him an independent right to recover what he spent in performing his work to the customary extent.
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.