Article 16 of the Saudi Registered Real Estate Mortgage Law
المادة 16 من نظام الرهن العقاري المسجل
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 وقوع الضرر وفقًا لأحكام القضاء المستعجل.
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 16 explained in plain English
This article gives the mortgagee a fast judicial remedy to protect the property that secures its debt. If works take place that are likely to:
- expose the mortgaged property to destruction, or
- expose it to defect, or
- make it insufficient as security,
the mortgagee may ask the court for two things: to stop these works, and to take the measures that prevent harm from occurring. This is done in accordance with the rules of urgent judicial proceedings, that is, by the route reserved for requests that need speed, though the article itself does not set out its procedures.
Note that the article does not require harm to have actually occurred; it is enough that the works are "likely" to lead to it. Nor does it specify who carries out the works, as what matters is their effect on the property.
It is connected to Article 15, which limits enforcement against a real surety to the mortgaged property alone. Article 17 lets the mortgagee transfer its right in the debt together with the mortgage to another. Anyone who needs to bring an urgent request to protect a mortgaged property should consult a lawyer specializing in real estate and real estate finance cases.
Practical example
A financing provider noticed that the owner of a mortgaged piece of land in Abha had begun extensive excavations threatening the stability of the building on it. It may apply to the court with an urgent request to stop the excavations and take measures to prevent the harm.
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 16 of the Saudi Registered Real Estate Mortgage Law
Can the mortgagee stop works that harm the mortgaged property?
Yes. It may ask the court to stop such works and take measures that prevent harm from occurring, in accordance with the rules of urgent judicial proceedings.
Must the harm actually occur before the request is made?
No. It is enough that works have taken place that are likely to expose the property to destruction or defect or make it insufficient as security.
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 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 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.