Article 527 of the Saudi Civil Transactions Law
المادة 527 من نظام المعاملات المدنية · الفصل الخامس: عقد الحراسة
The article sets out how sequestration ends and requires the sequestrator on its ending to return the property with its yield to the person the interested parties agree on or the court appoints.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تنتهي الحراسة باتفاق ذوي الشأن، أو بحكم المحكمة، أو بانتهاء مدتها إن كانت محددة المدة.
2- على الحارس عند انتهاء الحراسة أن يرد المال مع غلته إلى من يتفق عليه ذوو الشأن أو من تعينه 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 527 explained in plain English
This article deals with the end of sequestration and what follows from it.
Causes by which sequestration ends under paragraph (1):
- Agreement of the interested parties to end it, such as when the disputing parties settle.
- A court judgment ending it.
- Expiry of its term, which applies only if the sequestration was for a fixed term.
The sequestrator's obligation on its ending under paragraph (2): He must return the property with its yield, meaning the income it produced, to one of two persons:
- the person the interested parties agree on, or
- the person the court appoints.
The sequestrator does not decide for himself to whom he hands over the property; he is bound by what the interested parties agree or the court determines.
The article follows Article 526, which regulates the sequestrator's withdrawal from his task and the compensation that follows from it in some cases.
If the interested parties disagree over who receives the property after the sequestration ends, it is advisable to consult a lawyer specializing in civil or real estate matters, depending on the type of property.
Practical example
A building in Madinah was under sequestration because of a dispute among heirs, and then they reached a settlement and agreed to end the sequestration and hand the building to one of them to manage on their behalf. The sequestration contract ends by their agreement, and the sequestrator must hand over the building with the rent collected to the person they agreed on.
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 527 of the Saudi Civil Transactions Law
When does sequestration end?
By agreement of the interested parties, by court judgment, or by expiry of its term if it was for a fixed term.
To whom does the sequestrator hand over the property after the sequestration ends?
To the person the interested parties agree on or whom the court appoints, and he returns the property with its yield.
Does the sequestrator return the profits along with the property?
Yes, he must return the property with its yield.
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.