Article 652 of the Saudi Civil Transactions Law
المادة 652 من نظام المعاملات المدنية · الفرع الثاني: أسباب كسب الملكية أولًا: إحراز المباحات
The article governs a person who builds or plants in good faith with his own materials on another's land: he may remove it if that does not harm the land; otherwise the owner chooses between paying for the materials and labor or the increase in value.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا أحدث شخص بحسن نية بناءً أو غراسًا بمواد من عنده على أرض مملوكة لغيره، فللمحدث أن يزيله إذا لم تكن الإزالة تضر بالأرض، فإن كانت الإزالة تضر بالأرض أو لم يختر المحدث الإزالة؛ خير المالك بين أن يدفع قيمة المواد وأجرة العمل أو أن يدفع مبلغًا يساوي ما زاد في قيمة الأرض بسبب البناء أو الغراس. وإذا بلغ البناء أو الغراس حدًّا من الجسامة يرهق مالك الأرض أن يؤدي ما هو مستحق عنهما، كان له أن يطلب تمليك الأرض لمن أقام البناء أو الغراس مقابل تعويض عادل.
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 652 explained in plain English
This article deals with the case of a person who makes a building or planting in good faith and with his own materials on land owned by someone else, such as someone who mistakenly believes the land is his.
First: the maker's right to remove
The person who made it may remove what he made if removal does not harm the land.
Second: the owner's choice
If removal would harm the land, or the maker does not choose to remove, the landowner may choose between:
- paying the value of the materials and the cost of the labor.
- or paying an amount equal to the increase in the value of the land caused by the building or planting.
Third: where the building or planting is substantial
If the building or planting reaches such a size that it would be burdensome for the landowner to pay what is due for them, he may request that the land be transferred to the person who made the building or planting in return for fair compensation.
The difference from Article 651 is clear: that article deals with someone who builds or plants on land he knows belongs to someone else without permission, where the owner may request removal at the maker's expense with compensation if there are grounds for it. Good faith here gives the maker different treatment. Article 653 also deals with a landowner who, in good faith, encroaches on part of his neighbor's land while building.
Because assessing the harm, the value and the fair compensation requires expertise, consulting a lawyer who specializes in real estate matters is advised.
Practical example
Khaled bought a plot of land in a Riyadh subdivision, and because of an error in locating the plot he built a rest house on the neighboring plot owned by Saad, believing it was his own land. If removing the rest house would harm the land or Khaled does not choose to remove it, Saad may choose between paying the value of the materials and the cost of the labor, or paying the increase in the value of his land. If the building is so large that it would be burdensome for Saad to pay what is due for it, he may request that the land be transferred to Khaled in return for fair compensation.
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 652 of the Saudi Civil Transactions Law
I built on someone else's land believing it was mine. Can I remove the building?
Yes, you may remove what you made if removal does not harm the land.
What are the landowner's options if someone built on his land in good faith?
If removal would harm the land or the maker does not choose to remove, the owner chooses between paying the value of the materials and the cost of the labor, or paying the increase in the value of the land caused by the building or planting.
Can ownership of the land pass to someone who built on it in good faith?
Yes. If the building or planting reaches such a size that it is burdensome for the owner to pay what is due for it, he may request that the land be transferred to the maker in return for fair compensation.
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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.