Article 12 of the Real Estate Ownership by Non-Saudis Law
المادة 12 من نظام تملك غير السعوديين للعقار
The article punishes a non-Saudi who deliberately gives false or misleading information that leads to ownership with a fine of up to 5% (capped at SAR 10 million) and sale of the real right, through the Public Prosecution and the competent court.
Official text (Arabic)
This article has not been amended since the law was issued.
1- استثناءً مما تضمنته المادة (العاشرة) من النظام، ودون إخلال بأي عقوبة أشد منصوص عليها في أي نظام آخر؛ يعاقب غير السعودي الذي يقدم متعمداً معلومات غير صحيحة أو مضللة تؤدي إلى تملكه للعقار أو اكتسابه أيًّا من الحقوق العينية الأخرى على العقار بالآتي:
أ- غرامة لا تزيد على (5 %) من قيمة الحق العيني محل المخالفة بما لا يزيد على (10.000.000) عشرة ملايين ريال.
ب- بيع الحق العيني على العقار.
2- تختص النيابة العامة بالتحقيق والادعاء في الفعل المشار إليه في الفقرة (1) من هذه المادة، وتتولى المحكمة المختصة النظر في ذلك وإيقاع العقوبة.
3- إذا حكمت المحكمة ببيع الحق العيني وفق الفقرة (۲) من هذه المادة؛ فيرد إلى مرتكب الفعل ثمن الحق العيني أو ما دفعه مقابل اكتسابه له -بعد حسم الغرامات وأي ضرائب أو رسوم أخرى مقررة نظامًا ومصاريف البيع منه- أيهما أقل، ويورد ما تبقى من حصيلة البيع إلى الخزينة العامة للدولة.
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 12 explained in plain English
This article deals with a more serious violation than the general ones: a non-Saudi deliberately gives false or misleading information that leads to their owning real estate or acquiring another real right in it. For this reason it comes as an exception to Article 10, and without prejudice to any harsher penalty in another law.
The penalty: the violator is punished with the following:
- A fine not exceeding 5% of the value of the real right subject of the violation, and not exceeding SAR 10,000,000.
- Sale of the real right in the property.
The competent bodies: the Public Prosecution is competent to investigate and prosecute, and the competent court examines the case and imposes the penalty. This case is not heard by the committee mentioned in Article 11.
What happens to the sale proceeds: if the court rules that the real right be sold, the person who committed the act is returned the lesser of the price of the real right and what they paid to acquire it, after deducting the fines, any other taxes or fees lawfully due and the costs of sale. What remains of the sale proceeds is remitted to the State General Treasury.
For the article to apply, the giving of the information must be deliberate and the information must have led to the ownership. Anyone who is a party to an investigation of this kind should consult a lawyer specialized in criminal or real estate matters.
Practical example
A non-Saudi deliberately gave incorrect statements about their status in order to own a property they were not entitled to own, so the Public Prosecution investigated and the competent court ruled for a fine and sale of the property. If it sold for more than they paid, they are returned only what they paid after deducting the fine, fees and costs of sale, and the rest goes to the General Treasury.
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 12 of the Real Estate Ownership by Non-Saudis Law
What is the penalty for giving false information to own real estate?
A fine of no more than 5% of the value of the real right, up to SAR 10 million, and sale of the real right in the property.
Who investigates this violation?
The Public Prosecution is competent to investigate and prosecute, and the competent court examines the case and imposes the penalty.
Does the violator get the price of the property back after it is sold?
They are returned the lesser of the price of the real right and what they paid to acquire it, after deducting fines, taxes, fees and costs of sale, and the remainder goes to the General Treasury.
Articles this article refers to
More articles on Violations of Non-Saudi Ownership and Penalties
- Article 10
The article punishes violations of the Law or its regulations with a warning or a fine of up to 5% of the value of the real right, capped at SAR 10 million, and refers the table of violations to the regulations.
1- دون إخلال بأي عقوبة أشد منصوص عليها في أي نظام آخر، يعاقب من يخالف أحكام النظام أو اللائحة بأي من الآتي: أ- الإنذار. ب- غرامة لا تزيد على (5 %) من قيمة الحق
- Article 11
The article creates one or more committees by decision of the Authority's board to examine violations and impose the Article 10 penalties, and allows objecting to their decisions before the Administrative Court within 60 days.
1- تشكل بقرار من مجلس إدارة الهيئة لجنة (أو أكثر) لا يقل عدد أعضائها عن (ثلاثة)، من المتخصصين في الأنظمة، وتتولى النظر في المخالفات وإيقاع العقوبات الواردة في ا
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.