Article 655 of the Saudi Civil Transactions Law
المادة 655 من نظام المعاملات المدنية · الفرع الثاني: أسباب كسب الملكية أولًا: إحراز المباحات
The article provides that ownership and other real rights in real estate and movables pass by contract, where the contract concerns a subject matter owned by the person making the disposition and in accordance with the legal provisions.
Official text (Arabic)
This article has not been amended since the law was issued.
تنتقل الملكية وغيرها من الحقوق العينية في العقار والمنقول بالعقد متى ورد على محل مملوك للمتصرف وفقًا للنصوص النظامية.
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 655 explained in plain English
This article sets a basic rule on the transfer of ownership by contract.
What the article provides:
- Ownership and also other real rights (that is, rights that attach to the thing itself) pass by contract.
- The rule applies to both real estate and movables.
The two conditions:
- The contract must concern a subject matter owned by the person making the disposition; under this rule, ownership does not pass by the contract of someone who disposes of something he does not own.
- This must be in accordance with the legal provisions, so the transfer is subject to what the laws provide.
This article is related to Article 656, which elaborates the rule according to the nature of the subject matter of the contract:
- If the subject matter is specified by its identity, its ownership passes by the contract.
- If it is specified by its kind, ownership does not pass in any of its units until it is set apart.
The phrase "in accordance with the legal provisions" means that there are provisions that may require additional matters for ownership to pass; this article does not specify those provisions.
Anyone entering into a contract to buy real estate or a movable, and wanting to be sure that ownership passes to them, is well advised to consult a lawyer who specializes in real estate or civil matters.
Practical example
Noura bought a specific used car from its owner in Riyadh. Because the seller owns the car and the contract concerns it, ownership of the car passes to Noura by the contract in accordance with the legal provisions. But if it turned out that the seller did not own the car, this rule would not apply, because the condition that the subject matter be owned by the person making the disposition is not met.
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 655 of the Saudi Civil Transactions Law
Does ownership of real estate or a movable pass by the contract alone?
Ownership and real rights pass by contract where the contract concerns a subject matter owned by the person making the disposition and in accordance with the legal provisions.
Does ownership pass if someone sells what he does not own?
For ownership to pass by contract, the article requires that the contract concern a subject matter owned by the person making the disposition.
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يكون حارس البناء مسؤولًا عن تعويض الضرر الذي يحدثه تهدّم البناء كله أو بعضه؛ ما لم يثبت أن الضرر لا يرجع سببه إلى إهمال في الصيانة أو قدم في البناء أو عيب فيه.
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تصح هبة الشريك حصته في المال الشائع لشريكه أو لغيره عقارًا كان أو منقولًا، ولو كان الموهوب قابلًا للقسمة.
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.