Article 658 of the Saudi Civil Transactions Law
المادة 658 من نظام المعاملات المدنية · الفرع الثاني: أسباب كسب الملكية أولًا: إحراز المباحات
The article defines preemption (shuf'a) as the right of a co-owner to acquire the sold real estate for the price at which it was sold plus its expenses.
Official text (Arabic)
This article has not been amended since the law was issued.
الشفعة حق الشريك في أن يتملّك العقار المبيع بالثمن الذي بيع به وبنفقاته.
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 658 explained in plain English
This article gives the definition of preemption (shuf'a), which is an important right of co-owners of real estate.
Elements of the definition:
- The holder of the right: The right belongs to the co-owner, who is called the "preemptor" (shafi').
- The subject of the right: The sold real estate; the definition speaks of real estate, and specifically of a sale.
- The content of the right: That the co-owner acquires the sold real estate, that is, takes the buyer's place.
- The price: The acquisition is at the price at which the real estate was sold plus its expenses; the preemptor does not take it for a lower price, and is not asked for more than the price and the expenses.
In practice, this means that where a co-owner of real estate has his partner sell his share to someone else, he may be able to acquire the sold share at the same price plus its expenses, in accordance with the remaining rules on preemption in the Law concerning conditions, bars and time limits, which this definition does not cover.
This article is related to Article 659, which provides that where more than one preemptor comes together, each one's entitlement to preemption is in proportion to his share.
Because the right of preemption is tied to conditions and time limits that must be observed, anyone who believes they have a right of preemption is advised to consult a lawyer who specializes in real estate matters without delay.
Practical example
Ahmed and Mohammed each own half of a plot of land in Riyadh. Mohammed sold his share to a third person for SAR 400,000. Under the definition of preemption, Ahmed, as a co-owner, may acquire this sold share at the price at which it was sold, SAR 400,000, plus its expenses, subject to the remaining rules on preemption in the Law.
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 658 of the Saudi Civil Transactions Law
What does preemption (shuf'a) mean?
Preemption is the right of a co-owner to acquire the sold real estate for the price at which it was sold plus its expenses.
What price does the preemptor pay for the real estate?
He takes it at the price at which it was sold plus its expenses.
Does preemption apply only to real estate?
The definition in the article speaks of sold real estate.
More articles on Preemption, Possession and Easements
- Article 26
The article divides the real right into principal rights, such as ownership, usufruct, use, habitation, easement and waqf, and accessory rights, such as mortgage and privilege, together with what the legal provisions so consider.
1- يكون الحقُّ العينيُّ أصليًّا أو تبعيًّا. 2- الحقوق العينية الأصلية هي حق الملكية، وحق الانتفاع، وحق الاستعمال، وحق السكنى، وحق الارتفاق، وحق الوقف، وما يعد ك
- Article 659
The article provides that where more than one preemptor comes together, each one's entitlement to preemption is in proportion to his share.
إذا اجتمع أكثر من شفيع كان استحقاق كل منهم من الشفعة على قدر نصيبه.
- Article 660
The article provides that if a buyer sells property subject to preemption to another before the preemptor is notified of his wish to take by preemption under Article 666, the preemptor takes it only at the price of the second sale plus its expenses.
إذا اشترى شخص ما تصح الشفعة فيه ثم باعه لآخر قبل إعلام الشفيع رغبته الأخذ بالشفعة وفقًا للفقرتين (ب) و(ج) من المادة (السادسة والستين بعد الستمائة) من هذا النظام
- Article 661
The article fixes when the right of preemption is established: when the sale is completed, provided that the reason giving rise to preemption exists.
تثبت الشفعة بتمام البيع مع قيام السبب الموجب لها.
- Article 662
The article requires, for the right of preemption to be established, that the preemptor owned his share in the real estate at the time the buyer bought the seller's share.
ليس للشفيع حق الشفعة إلا إذا كان مالكًا لنصيبه في العقار وقت شراء المشتري نصيب البائع.
- Article 663
The article provides that once preemption is established under Article 661, it does not lapse on the death of the seller, the buyer or the preemptor.
إذا ثبتت الشفعة وفقا للمادة (الحادية والستين بعد الستمائة) من هذا النظام؛ فلا تسقط بموت البائع أو المشتري أو الشفيع.
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.