Article 11 of the Saudi Registered Real Estate Mortgage Law
المادة 11 من نظام الرهن العقاري المسجل
The article allows dealing with a mortgaged property that is registered under the Real Estate Registration Law, and prevents the mortgagor from dealing with an unregistered one unless an agreement is documented in its deed and record.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - إذا كان العقار مسجلاً وفقًا لأحكام نظام التسجيل العيني للعقار، جاز التصرف فيه.
2 - إذا لم يكن العقار مسجلاً وفقًا لأحكام نظام التسجيل العيني للعقار، فلا يجوز للراهن أن يتصرف في عقاره المرهون، ما لم يتفق على خلاف ذلك، ووثق ذلك في صكه وسجله.
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 11 explained in plain English
This article answers a common question: can the mortgagor deal with the mortgaged property, for example by selling it or transferring its ownership? The answer depends on the status of the property:
- If the property is registered under the Real Estate Registration Law: it may be dealt with.
- If the property is not registered under the Real Estate Registration Law: the mortgagor may not deal with the mortgaged property unless otherwise agreed, and that agreement is documented in the property's deed and record.
The distinction implies that, for property not registered under the registration law, the default is a prohibition, and the exception requires two things together: an agreement allowing the dealing, and documentation of that agreement in the deed and the record.
The article itself does not discuss the effect of the dealing on the mortgagee's right. It is linked to Article 10, which sets the principle of indivisibility of the mortgage, and Article 12, which gives the yield and management of the mortgaged property to its owner without prejudice to the mortgagee's right.
Anyone who wishes to sell a mortgaged property, or buy a property that is mortgaged, should first check its registration status and consult a lawyer specializing in real estate and real estate finance cases.
Practical example
Nasser owns an apartment in Khobar that is registered under the Real Estate Registration Law and mortgaged to a financing provider, and he wants to sell it. The article allows dealing with it. If the apartment were not registered under that law, he could sell it only if he agreed with the mortgagee and the agreement were documented in its deed and record.
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 11 of the Saudi Registered Real Estate Mortgage Law
Can a mortgaged property be sold?
If the property is registered under the Real Estate Registration Law, it may be dealt with. If it is not registered under that law, the mortgagor may not deal with it except under an agreement documented in its deed and record.
What is required to deal with a mortgaged property that is not registered under the registration law?
The parties must agree that dealing is permitted, and that agreement must be documented in the property's deed and record.
More articles on Rights and Duties of Mortgagor and Mortgagee
- Article 12
The article gives the yield, upkeep and management of the mortgaged property to its owner without prejudice to the mortgagee. The yield is not mortgaged unless the mortgagee requires it, and the parties may agree to settle due debt from it.
1 - غلّة العقار المرهون لمالكه ونفقته عليه، وإدارته حق له بما لا يخل بحق المرتهن. 2 - لا تكون الغلة رهنًا مع الأصل إلا إن اشترط المرتهن ذلك. 3 - يجوز أن يتفق ال
- Article 13
The article obliges the mortgagor to preserve the mortgaged property until the debt is paid, and lets the mortgagee object to anything that reduces its value, take lawful precautionary measures, and recover the costs from the mortgagor.
يلتزم الراهن بالمحافظة على سلامة العقار المرهون حتى تاريخ وفاء الدين، وللمرتهن الاعتراض على جميع ما من شأنه إنقاص قيمة العقار المرهون، أو تعريضه للهلاك، أو العي
- Article 16
The article lets the mortgagee ask the court to stop works that expose the mortgaged property to destruction or defect or make it insufficient as security, under the rules of urgent judicial proceedings.
إذا وقعت أعمال من شأنها أن تعرض العقار المرهون للهلاك أو العيب، أو تجعله غير كاف للضمان، فللمرتهن أن يطلب من المحكمة وقف هذه الأعمال، واتخاذ الوسائل التي تمنع و
- Article 19
The article invalidates two conditions in a mortgage contract: that the mortgaged property's benefits go to the mortgagee, and that the mortgagee acquires the property if the debt is not paid on time. The mortgage stays valid.
لا يصح أن يشترط في عقد الرهن ما يأتي: 1 - أن تكون منافع العقار المرهون للمرتهن، وللمرتهن بموافقة الراهن تحصيل غلة العقار المرهون على ألا ينتفع بها. 2 - أن يمتلك
- Article 20
The article states when a lease granted by the mortgagor of a property registered under the Real Estate Registration Law binds the mortgagee, and requires the mortgagor of an unregistered property to disclose rights in rem in the contract.
1 - إذا كان العقار المرهون مسجلاً وفقًا لنظام التسجيل العيني للعقار، فلا ينفذ عقد الإيجار الصادر من الراهن في حق المرتهن إلا إذا كان مسجلاً قبل تسجيل عقد 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.