Article 10 of the Saudi Registered Real Estate Mortgage Law
المادة 10 من نظام الرهن العقاري المسجل
The article sets the principle that a mortgage is indivisible: every part of the property secures the whole debt, and every part of the debt is secured by the whole property, unless otherwise agreed.
Official text (Arabic)
This article has not been amended since the law was issued.
كل جزء من العقار المرهون ضامن لكل الدين، وكل جزء من الدين مضمون بالعقار المرهون، ما لم يتفق على غير ذلك.
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 10 explained in plain English
This article sets out what is known as the principle of the indivisibility of the mortgage, which has two sides:
- Every part of the mortgaged property secures the whole debt: if the property consists of parts or units, each part secures the entire debt, not just a portion of it.
- Every part of the debt is secured by the mortgaged property: whatever remains of the debt, however small, stays secured by the whole property.
The practical result is that partial repayment does not automatically release part of the property. The whole property stays mortgaged until the debt is paid, which is the default rule the article sets.
However, the article ends with the phrase "unless otherwise agreed". The mortgagor and the mortgagee may agree to make the mortgage divisible, for example by releasing part of the property each time a set portion of the debt is repaid. Such an agreement must be expressly stated; otherwise the default rule applies.
This rule complements Article 9, which requires the amount or maximum limit of the secured debt to be stated. Anyone who wants an arrangement allowing parts of the property to be released as repayments are made should discuss it before signing, and may consult a lawyer specializing in real estate and real estate finance cases.
Practical example
A real estate developer in Riyadh mortgaged a compound of ten villas to secure a single financing facility and repaid half of the debt. The developer cannot demand the release of five villas merely because of the partial repayment, since each villa secures the whole debt, unless the mortgage contract provides for releasing units progressively as repayments are made.
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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Dr. Saleh Altayyar & Partners Law Firm
Frequently asked questions about Article 10 of the Saudi Registered Real Estate Mortgage Law
If I repay half of the loan, is half of the mortgaged property released?
No. The default rule is that every part of the property secures the whole debt, so the whole property remains mortgaged unless otherwise agreed.
Can parts of the property be released gradually by agreement?
Yes. The article allows an agreement that departs from the principle of indivisibility.
More articles on Debt Secured by the Mortgage
- Article 9
The article sets out what a mortgage can secure: an established debt, a specified promised debt, a specific item guaranteed by the debtor, or a debt that will become due. The contract must state the amount of the debt or its maximum limit.
يشترط في مقابل الرهن أن يكون دينًا، ثابتًا في الذمة، أو موعودًا به محددًا، أو عينًا من الأعيان المضمونة على المدين، أو دينًا مآله إلى الوجوب، كدين معلق على شرط
- Article 17
The article lets the mortgagee transfer its right to collect the debt, together with the mortgage that secures it, to another person, subject to the rules on dealing in debts, unless otherwise agreed.
مع مراعاة أحكام التصرف في الديون، يجوز للمرتهن نقل حقه في استيفاء الدين مع الرهن الضامن له لغيره، ما لم يتفق على خلاف ذلك.
- Article 22
The article confines the effect of the mortgage to the debt specified in the mortgage document, so it does not extend to other debts not mentioned in it.
يقتصر أثر الرهن على الدين المحدّد في وثيقة الرهن.
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.