Article 661 of the Saudi Civil Transactions Law
المادة 661 من نظام المعاملات المدنية · الفرع الثاني: أسباب كسب الملكية أولًا: إحراز المباحات
The article fixes when the right of preemption is established: when the sale is completed, provided that the reason giving rise to preemption exists.
Official text (Arabic)
This article has not been amended since the law was issued.
تثبت الشفعة بتمام البيع مع قيام السبب الموجب لها.
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 661 explained in plain English
This article answers an important practical question: when does the right of preemption arise? The answer is that it is not established merely by negotiating a sale or offering the real estate for sale, but when the sale is completed.
The article requires two things together:
- The sale is completed: that is, the sale is actually concluded between the seller and the buyer. As long as the sale has not been completed, there is no existing right of preemption that can be claimed.
- The reason giving rise to preemption exists: that is, the preemptor has, at the time of the sale, the reason that gives him this right.
This article does not itself set out the content of the reason giving rise to preemption, but Article 662 clarifies one aspect of it: the preemptor has the right of preemption only if he owned his share in the real estate at the time the buyer bought the seller's share. If someone acquired a share in the real estate after the sale, he cannot claim preemption in that sale.
The article is also related to Article 660, which deals with the case where the buyer sells the real estate to someone else before the preemptor announces his wish to take by preemption, in which case the preemptor takes it only at the price at which it was sold to the second buyer plus its expenses.
Because determining the moment the sale was completed and whether the reason existed may require examining contracts and documents, anyone who wants to claim preemption, or who fears a claim of preemption, is well advised to consult a lawyer who specializes in real estate matters.
Practical example
Khaled and Saad each own half of a plot of land in Riyadh. Saad announced that he was looking for a buyer for his share, and Khaled immediately claimed preemption. Khaled has no right of preemption at this stage, because the sale has not yet been completed. If Saad actually sells his share to a buyer, and Khaled owned his share at the time of the purchase, the right is then established for him.
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 661 of the Saudi Civil Transactions Law
Is the right of preemption established merely by offering the real estate for sale?
No. The article provides that preemption is established when the sale is completed, so the right does not exist before the sale is completed.
What is needed besides a completed sale for preemption to be established?
The reason giving rise to preemption must exist, including, under Article 662, that the preemptor owned his share in the real estate at the time the buyer bought the seller's share.
What if the buyer sells the real estate to someone else before I claim preemption?
Under Article 660, if he sold it before the preemptor was notified of his wish to take by preemption, the preemptor takes it only at the price at which it was sold to the second buyer plus its expenses.
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 658
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.
الشفعة حق الشريك في أن يتملّك العقار المبيع بالثمن الذي بيع به وبنفقاته.
- 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 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.