Article 13 of the Saudi Registered Real Estate Mortgage Law
المادة 13 من نظام الرهن العقاري المسجل
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 العيب، وله أن يتخذ من الإجراءات التحفظية النظامية ما يضمن سلامة حقه، وله الرجوع بالنفقات على الراهن.
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 13 explained in plain English
This article places an obligation on the mortgagor and gives corresponding rights to the mortgagee, with the aim of protecting the property that secures the debt.
The mortgagor's obligation: the mortgagor must preserve the soundness of the mortgaged property, and this obligation continues until the date the debt is paid.
The mortgagee's rights:
- To object to anything that is likely to reduce the value of the property, or expose it to destruction or defect.
- To take the lawful precautionary measures that secure its right.
- To recover the costs from the mortgagor, that is, to claim what it spent for that purpose.
The article does not specify the type of precautionary measures or the method of objection, but refers to those that are "lawful". This provision balances what Article 12 provides, that managing the property is the owner's right, since that management remains subject to not prejudicing the mortgagee's right.
Article 14 addresses what follows if the property's value actually decreases or the property is destroyed, and distinguishes between what happens through transgression, negligence or fraud by the person holding the property and what happens otherwise. Anyone planning substantial works on a mortgaged property, or who sees that a property mortgaged to them is at risk, should consult a lawyer specializing in real estate and real estate finance cases.
Practical example
The owner of a mortgaged villa in Medina began demolishing parts of it without any arrangement with the financing provider. The financing provider is entitled to object to these works because they reduce the value of the property, to take lawful precautionary measures, and then to recover its costs from the owner.
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 13 of the Saudi Registered Real Estate Mortgage Law
Is the mortgagor obliged to maintain the mortgaged property?
The mortgagor must preserve the soundness of the mortgaged property until the date the debt is paid.
What can the mortgagee do if the property is at risk of damage?
It may object to anything that reduces the property's value or exposes it to destruction or defect, take lawful precautionary measures, and recover the costs from the mortgagor.
More articles on Rights and Duties of Mortgagor and Mortgagee
- Article 11
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.
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 يجو
- 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 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.