Article 19 of the Saudi Expropriation of Real Estate for Public Interest Law
المادة 19 من نظام نزع ملكية العقارات للمصلحة العامة · الباب الرابع: التعويض والإخلاء
Replacement grant land must be in the same location or one with similar advantages, its market value must exceed the expropriated land's by between 20% and 40%, and it must be valued under Articles 14 and 15.
Official text (Arabic)
This article has not been amended since the law was issued.
يشترط للتعويض بأرض منحة بديلة بالنسبة إلى الحالة الواردة في الفقرة (1) من المادة (الثامنة عشرة) من النظام، ما يلي:
1- أن تكون أرض المنحة البديلة في الموقع المنزوعة الملكية فيه، أو أي موقع آخر تتحقق فيه مزايا مماثلة لموقع الأرض المنزوعة ملكيتها.
2- أن تزيد القيمة السوقية لأرض المنحة البديلة بنسبة لا تقل عن (20%) ولا تزيد على (40%) عن القيمة السوقية للأرض المنزوعة ملكيتها، وتحدد اللائحة الأحكام الخاصة بذلك.
3- تقيَّم أراضي المنح البديلة -المنصوص عليها في هذه المادة- وفقاً لأحكام وإجراءات التقييم الواردة بالمادة (الرابعة عشرة) والمادة (الخامسة عشرة) من النظام.
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 19 explained in plain English
This Article sets the conditions for replacement grant land in the case allowed by paragraph 1 of Article 18 (vacant undeveloped land whose basis is a government grant, where the project owner is a government body):
- Location: the replacement land must be in the location from which the land was expropriated, or in any other location that has similar advantages to the location of the expropriated land.
- Value: the market value of the replacement land must exceed the market value of the expropriated land by a percentage of not less than 20% and not more than 40%, and the Regulations set the provisions for this.
- Valuation: the replacement land is valued by the same procedures set out in Articles 14 and 15, that is, by three independent accredited valuers contracted by the project owner, then review by the valuers' committee in the Authority, and approval of the average price by decision of the Governor.
These conditions ensure that the owner of grant land does not lose out, since he receives land in a similar location and of higher value than his land. Anyone who believes the land offered to him does not meet these conditions may consult a lawyer specializing in real estate cases.
Practical example
Salman's grant land in Hail was valued at SAR 300,000, and he was offered replacement grant land in a similar neighborhood. The market value of the replacement land must range between SAR 360,000 (an increase of 20%) and SAR 420,000 (an increase of 40%), after being valued by the procedures set in Articles 14 and 15.
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 19 of the Saudi Expropriation of Real Estate for Public Interest Law
How much must the replacement grant land be worth?
Its market value must exceed the value of the expropriated land by a percentage of not less than 20% and not more than 40%.
Must the replacement land be in the same place?
It is in the location from which it was expropriated or in any other location that has similar advantages.
How is replacement grant land valued?
By the valuation procedures in Articles 14 and 15: three accredited valuers, then review by a committee in the Authority and approval of the average price by decision of the Governor.
Articles this article refers to
- Article 14
Valuing the properties to be expropriated and alternative properties and determining fair rental is assigned to three accredited valuers whom the project owner contracts and whose fees it pays.
1- يُسند تقييم العقارات المقرر نزع ملكيتها، والعقارات البديلة -في حال التعويض العيني-، وتحديد أجرة المثل وفقاً للنظام؛ إلى ثلاثة مقيمين معتمدين. 2- تتولى الجهة
- Article 15
A committee of three accredited valuers in the Authority reviews the valuation reports and recommends the average price, which the Governor approves and which is notified to owners within 90 days of referral of the survey report.
1- تراجع التقارير -المعدة وفقاً للفقرة (3) من المادة (الرابعة عشرة) من النظام- لجنة تُشكل في الهيئة، تُكوَّن من ثلاثة مقيمين معتمدين، على أن يُراعى ألا يقل تصني
- Article 18
As an exception, where the project owner is a government body, compensation may be by replacement grant land for undeveloped vacant land whose ownership originates in a government grant and still belongs to the grantee.
1- استثناءً من المادة (السادسة عشرة) من النظام، يجوز -في الحالات التي تكون الجهة صاحبة المشروع جهةً حكوميةً- أن يكون التعويض عن نزع ملكية العقار بأرضِ منحة بديل
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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.