Article 15 of the Saudi Registered Real Estate Mortgage Law
المادة 15 من نظام الرهن العقاري المسجل
The article limits enforcement against a real surety, who is not the debtor, to the mortgaged property alone, and lets the owner claim against the debtor after the property is sold but not before enforcement against it.
Official text (Arabic)
This article has not been amended since the law was issued.
1 - إذا كان الراهن كفيلاً عينيًّا، فلا يجوز التنفيذ على ما سوى العقار المرهون من أموال مالكه غير المدين.
2 - إذا بيع العقار المرهون المكفول به عينيًّا، فلمالكه الرجـوع على المدين، وليس له ذلك قبل التنفيذ على العقار المرهون.
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 15 explained in plain English
A real surety is someone who mortgages their property to secure another person's debt without being the debtor. This article sets two rules that define the surety's liability and right:
- Limits of enforcement: if the mortgagor is a real surety, enforcement may not be carried out against the owner's other assets besides the mortgaged property, since the owner is not the debtor. That is, the surety's liability is limited to the property mortgaged and does not extend to the surety's balance or other properties.
- Right of recourse against the debtor: if the property mortgaged by a real surety is sold, its owner may have recourse against the debtor. But the owner may not do so before enforcement against the mortgaged property.
Taken together, the two rules mean that a real surety puts a specific property at the service of the debt, bears the risk of losing it, and then goes back to the original debtor once that has actually happened. The article does not specify the method or amount of recourse.
This article is connected to Article 14, which deals with a decrease in value or destruction of the mortgaged property, and Article 16, which lets the mortgagee ask the court to stop acts harmful to the property. Anyone intending to act as a real surety for a relative or partner should assess the possibility that their property will be sold, and consult a lawyer specializing in real estate and real estate finance cases.
Practical example
Noura mortgaged an apartment she owns in Jeddah to secure her brother's loan, and the brother then defaulted. Enforcement may not be carried out against her bank accounts or her other properties, only against the mortgaged apartment. After the apartment is sold she may have recourse against her brother, but not before.
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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Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 15 of the Saudi Registered Real Estate Mortgage Law
Can enforcement be carried out against a real surety's other assets?
No. Enforcement may not be carried out against the owner's assets other than the mortgaged property, since the owner is not the debtor.
When may a real surety have recourse against the debtor?
If the mortgaged property is sold, its owner may have recourse against the debtor, but not before enforcement against the mortgaged property.
More articles on Enforcing Against the Mortgaged Property
- Article 18
The article requires the debt to be paid when it falls due. If the debtor pays, the debtor takes back the property; if not, it is sold at the mortgagee's request and the mortgagee takes priority by rank, then shares in the debtor's other assets for any balance.
إذا حل أجل الدين وجب أداؤه، فإذا أداه المدين أخذ عقاره المرهون، وإن لم يؤدّه بيع العقار المرهون بطلب المرتهن، ويقدّم على جميع الغرماء في استيفاء دينه من ثمنه وف
- Article 28
The article lets the mortgagee begin compulsory expropriation and sale of the mortgaged property if the debtor does not pay by the agreed time, after notifying the debtor and the possessor in accordance with the Enforcement Law.
للمرتهن أن يتخذ إجراءات النزع الجبري لملكية العقار المرهون وبيعه إذا لم يقم المدين بالوفاء في الأجل المعين، وذلك بعد إنذار المدين وحائز العقار المرهون وفقًا لنظ
- Article 31
The article refers the procedures for compulsory expropriation and sale of the mortgaged property, when the debt is not paid, to the Enforcement Law.
تتم إجراءات النزع الجبري لملكية العقار المرهون وبيعه عند عدم الوفاء بالدين وفقًا لنظام التنفيذ.
- Article 32
The article lets the possessor of a mortgaged property enter its auction; if the possessor wins and pays the price, the possessor is regarded as owner under the original ownership document, and the property is cleared of every registered right.
يجوز لحائز العقار المرهون أن يدخل في إجراءات بيعه في المزاد، فإذا رسا المزاد عليه وأدى الثمن، عُدَّ مالكًا للعقار بمقتضى وثيقة ملكيته الأصلية، ويتطهر العقار الم
- Article 33
If the auction of a mortgaged property is awarded to someone other than its possessor, that person acquires ownership under the decision awarding the auction and receives the right from the possessor, whether or not the possessor entered the auction.
إذا رسا مزاد بيع العقار المرهون على غير حائزه، فإنه يكسب ملكيته بمقتضى قرار رسوّ المزاد عليه، ويتلقى حقه من الحائز، سواء أدخل الحائز في المزاد أم لم يدخل.
- Article 34
If the price of the mortgaged property exceeds the value of the registered debts, the excess belongs to the owner.
إذا زاد ثمن العقار المرهون على قيمة الديون المسجلة، كانت الزيادة للمالك.
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.