Article 694 of the Saudi Civil Transactions Law
المادة 694 من نظام المعاملات المدنية · الفرع الثاني: حق الاستعمال وحق السكنى
The article allows the right of usufruct to be limited to the right of use alone or the right of residence alone.
Official text (Arabic)
This article has not been amended since the law was issued.
يصح أن يقتصر حق الانتفاع على حق الاستعمال أو حق السكنى.
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 694 explained in plain English
The right of usufruct in principle gives its holder the benefit of a thing owned by another. This article shows that this right can be narrower than that, limited to a single form of benefit:
- The right of use: that is, the right is limited to using the thing.
- The right of residence: that is, the right is limited to living in the real estate.
This allows the parties to arrange a limited right according to the purpose they want, instead of a full right of usufruct.
This article is the first article in the section on the right of use and the right of residence. It is complemented by Article 695, which shows that the extent of these two rights is determined by the needs of the right-holder and his family, taking into account what the instrument creating the right provides and custom. Before it, Article 693 came at the end of the rules on the right of usufruct, preventing hearing a claim for it after ten years of non-use.
Anyone who wants to arrange a right of residence or use for a relative or someone else, or has a disagreement about the scope of such a right, is well advised to consult a lawyer who specializes in real estate and civil matters to draft the instrument so that it achieves the purpose.
Practical example
Abdullah wanted to let his sister live in an apartment he owns in Jeddah without giving her the full right of usufruct over it. The right he creates for her may be limited to the right of residence alone.
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 694 of the Saudi Civil Transactions Law
Is the right of residence a kind of right of usufruct?
The article allows the right of usufruct to be limited to the right of residence, so it is a limited form of it.
Can the right be for use only?
Yes. The right of usufruct may be limited to the right of use.
How is the scope of the right of residence determined?
Article 695 shows that it is determined by the needs of the right-holder and his family, taking into account the instrument creating the right and custom.
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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.