Article 678 of the Saudi Civil Transactions Law
المادة 678 من نظام المعاملات المدنية · الفرع الثالث: أثر الحيازة على الملكية
The article distinguishes the possessor's liability for loss or damage to the thing: the good-faith possessor is liable only to the extent of the benefit he gained, while the bad-faith one is liable even for causes beyond his control.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يلزم الحائز حسن النية التعويض عما يصيب الشيء بسبب انتفاعه به انتفاع الملاك، ولا يكون مسؤولًا عن أي هلاك أو تلف إلا بقدر ما عاد عليه من نفعٍ ترتب على ذلك الهلاك أو التلف.
2- الحائزُ سيءُ النية مسؤولٌ عن هلاك الشيء أو تلفه ولو كان ذلك بسبب لا يد له فيه، إلا إذا أثبت أن الشيء كان سيهلك أو يتلف ولو كان تحت يد مالكه.
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 678 explained in plain English
This article determines the possessor's liability for what happens to the thing in his hand, and clearly distinguishes between a good-faith possessor and a bad-faith one.
First: the good-faith possessor
- He is not required to compensate for what happens to the thing because of his use of it as owners use things, that is, the ordinary use an owner makes of his property.
- He is not liable for any loss or damage except to the extent of the benefit he gained as a result of that loss or damage.
Second: the bad-faith possessor
- He is liable for the loss or damage of the thing even if it was due to a cause in which he had no hand.
- He escapes this liability only if he proves that the thing would have been lost or damaged even had it been in its owner's hands. The burden of this proof is on him.
The difference between the two cases is great: the good-faith possessor is protected as long as his use is the use of an owner, whereas the bad-faith possessor's liability is stricter.
To know who is a good-faith possessor and when he ceases to be, refer to Article 675 of the Law. The article also complements the rule of Article 677 on the expenses the owner must pay the possessor when the thing is returned to him.
To assess compensation in a dispute over damage to a possessed thing, you can consult a lawyer who specializes in civil matters and compensation.
Practical example
Saeed was in possession of a car knowing it was not his, and then it was damaged in a severe dust storm in Jeddah through no fault of his. Saeed is liable for this damage because he is a bad-faith possessor, unless he proves that the car would have been damaged by the same storm even had it been with its owner. Had he been in good faith, he would have had to compensate only to the extent of the benefit he gained as a result of the damage.
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 678 of the Saudi Civil Transactions Law
Does a good-faith possessor compensate for wear of the thing from use?
He is not required to compensate for what happens to the thing because of his use of it as owners use things.
Is a bad-faith possessor liable for damage he did not cause?
Yes. He is liable even if the damage was due to a cause in which he had no hand, unless he proves that the thing would have been lost or damaged even had it been in its owner's hands.
When is a good-faith possessor liable for loss or damage?
He is liable only to the extent of the benefit he gained as a result of that loss or damage.
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 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.
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.